Are you in a confusion with the submission of IRAS PIC claim? Here are some of the most effective tips that will help you a great deal in submitting IRAS PIC Claim.
a. PIC Claim application forms should be properly filled
Companies should make sure that the PIC cash payout application forms are properly filled and duly signed by the concerned officials. Incomplete and unsigned application forms are straight forwardly rejected by the IRAS. Rejection of application forms would mean that the companies had to invest it is time again in filling up the form. Therefore, it is wise to carefully check that nothing has been left out and verify the sign of the individuals wherever applicable before submitting the application forms.
b. PIC Claim should only be made on Qualifying Expenditure
Companies should understand that there are certain kinds of expenditure, which does not qualify for the PIC claim. Some of these expenditures are cost of Automation equipment, which is not incurred outside the year of assessment, maintenance fees, warranty charges, training costs for businesses, consultation charges and many more. Proper PIC Claim application forms are tend to get approved quickly hence do not make unwanted discrepancies.
c. Claim should only be made over expenditure on equipment which are mentioned in the PIC Automation Equipment List
It should be noted that not all the equipment come under the prescribed list of PIC IT and Automation. Companies are required to go through the list of equipment mentioned in that particular list and make sure whether their equipment qualifies for the successful claim or not. The equipment on the Automation list are as follows:
1. Image and Graphics Processing equipment
2. Data processing and information technology equipment
3. Automated system for storage and retrieval of information
4. Data Communications and Networking equipment
5. Information Technology Software etc.
The equipment does not qualify for the claims are furniture and fittings, automobiles, CCTVs, digital cameras, UPS and freezers.
d. Proper Documentation and records should remain available for backing up your claim
Companies should maintain proper documentation and records for at least covering a period of five years. This would help the companies in quickly submitting the essential reports, bank statement, Invoices, CPF payment records and other documents whenever the IRAS request for it. These would serve as an evidence for supporting the claims made by the company in case of rejection by IRAS. However, supporting documents are asked by the IRAS from time to time to eliminate the cases of fraud by those companies, which indulge in abusing the PIC Plus Scheme.
e. Choose the Claim Option Wisely
Businesses either can opt to convert their qualifying expenditure into 'cash pay-out' or could claim the '400% tax deductions' against their income. But the companies are allowed to claim for both the tax deductions and cash pay-out on the very same expenditure.
Source by Teo P.
