13 Things You Must Know If Your Want To Claim For Training Costs Under PIC
Today I received 2 enquiries on claiming of PIC on Training Costs.
I supposed this may be a topic of interest on this platform too.
Let me explain…
1. Businesses may claim PIC benefits on costs incurred to provide training to employees for the purposes of trade and business.
2. Training may refer to external training & in-house training.
3. Qualifying training costs include training for all employees.
4. It does not matter whether they are local or foreign employees.
5. External & in-house training can qualify for PIC.
6. External Training
* Refers to the fees for the training course that are paid to an external training service provider.
7. In-House Training
* The course is conducted by employees of the businesses where expenditure is incurred in relation to the provision of the following:
a. Workforce Skills Qualification (WSQ) training courses accredited by the Singapore Workforce Development Agency (WDA) and conducted by a WSQ in-house training provider
b. Courses approved by the Institute of Technical Education (ITE) under the ITE Approved Training Centre scheme
c. On-the-job training by an On-the-job Training Centre certified by ITE
8. For YA 2012 to YA 2018, qualifying training expenditure incurred on in-house training not accredited by the Workforce Development Agency (WDA) or approved/certified by the Institute of Technical Education (ITE) will also qualify for PIC, subject to a cap of $10,000 for each YA.
9. There is no need to obtain prior approval from IRAS for training expenditure to qualify for PIC.
10. Some forms of in-house training may qualify for PIC without external certification. These include:
a. Training staff to operate specialised equipment(s) with the help of instruction manuals
b. Training staff on business operating processes & functions in a group setting, with prepared materials and handouts; or
c. Training staff on key skill sets such as regular sessions on customer service.
11. Note : Spontaneous consultation, day-to-day problem solving or meetings and coaching/mentoring sessions between supervisors & subordinates will not qualify for PIC.
12. Following allowable costs for In-house training :
a. Salary & other remuneration of in-house trainers for the delivery of the training courses (i.e. based on the hours spent delivering the courses), excluding directors’ fees
b. Rental of external training premises
c. Meal & refreshments provided during the courses; &
d. Training materials & stationery.
13. Following non-allowable costs for In-house training :
a. Salary & other remuneration paid to in-house trainers for their other duties, including time spent in the preparation of course contents and training material
b. Salary & other remuneration paid to employees who provide administrative support to the training department
c. Absentee payroll (i.e. salaries & other remuneration of any employee attending the training courses)
d. Accommodation, travelling & transportation expenditure; &
e. Imputed overheads like rental & cost of utilities.
Good Luck and happy training !
If you need help, feel free to contact us at :
(M) +65 90880669
