Take-up Rate for Productivity and Innovation Credit

Dr Lim Wee Kiak asked the Deputy Prime Minister and Minister for Finance (a) if he can provide an update on the take-up rate for the Productivity and Innovation Credit Scheme; and (b) what is the current percentage of companies that have opted for cash payouts.

Mr Tharman Shanmugaratnam: One in three active and small companies with turnover of $10 million or less has used the Productivity and Innovation Credit (PIC) scheme in the first year of claim, which is the Year of Assessment 2011. Overall, 33,000 companies have claimed PIC benefits in Year of Assessment 2011. Five percent of these companies opted for cash payouts. We will provide an update at the end of the year on the take-up for the PIC after companies file their tax returns for Year of Assessment 2012.

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