The director of Company XYZ purchased a computer in February 2016. He submitted his PIC claim on 01/08/2016. With the recent PIC claim changes announced during the 2016 budget, what is his elgible claim rate?
The PIC cash payout rate has been reduced from 60% to 40% for qualifying expenses incurred on or after 01/08/2016. This change is not determined by the PIC claim submission date.
As the computer was purchased in February 2016, which is before the effective date of the change (01/08/2016), the director is still eligible to claim the payout rate of 60% although the claim was submitted after the effective date.
PIC claim must fulfill all conditions set by IRAS to be eligible for the cash payout.
|For more information on the changes to the PIC cash payout rate, please refer to the IRAS website.|