CASE BY CASE APPROVAL OF EQUIPMENT FOR PIC

CASE BY CASE APPROVAL OF EQUIPMENT FOR PICEvery industry requires specialized equipment in their operating process.

For example, a beauty salon requires an IPL machine for hair removing services, a food production company required mixer and conveyor system in the process and some companies may also require CCTV to monitor the employees’ work performance as well as the security of the surrounding.

However, not all equipment are eligible for PIC claims, and a case-by-case approval letter has to be submitted to IRAS for reviewing first.

 

Factors that IRAS look at when approving the equipment on a case-by-case basis:

1)     The equipment automates or mechanises the business’ work process. It must replace previous processes done manually.

2)     The equipment enhances productivity of the business (e.g., in terms of reduced man-hours, more output or improved work processes); and

3)     If the equipment is a basic tool used in the business, (e.g., a washing machine is considered a basic tool in a laundry business)

(a)    it has to increase productivity compared to existing equipment used in the business; or

(b)    it has not been used in the business before.

IRAS will compare the equipment based on the previous equipment used. If it is a new equipment which the company has not used before, then IRAS will need to know how it automates and improves the productivity of the work process.

For newly set-up companies, IRAS will evaluate the application based on the equipment used by similar industry.

All applications will be review based on each industry’s operating process and the function (s) of the equipment(s).

The processing time for the application are within 3 weeks of receiving the application form and the applicant will be informed of the outcome by post. Submission must be complete at the time of application.

Do not apply for the cash pay-out or claim PIC deductions/allowances in your income tax return until approval has been granted.

We have helped many of our clients to get approval for the PIC case-by-case approval of equipment. We are confident to say that we have high success rate.

When you engage our approval writing services, our PIC consultant will do an interview with you to understand the company current work and also the functions of the equipment. Thereafter, based on the given information, we will prepare the case-by-case application form. After 3 weeks of the processing period, we can help you to check the status of the application too.

Allow us to assist you through the application so that you can have a peace of mind…

You can see PIC FAQ or Contact us now to find out more.

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