Pioneer Certificate Incentive and Development and Expansion Incentive
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Key Facts about the PC&DEI Incentive
The Pioneer Certificate Incentive and Development and Expansion Incentive (PC&DEI) is a government initiative aimed at encouraging companies to engage in new or expanded economic activities in Singapore. It is administered by the Economic Development Board (EDB), an agency playing a crucial role in driving Singapore's economic development by attracting foreign investments, promoting local businesses, and supporting the growth of key industries.
PC&DEI target companies involved in high value-added services, manufacturing, research and development. It is also open to companies managing global or regional headquarters activities. An approved company under the PC or DEI is entitled to significant tax benefits, including a corporate tax exemption or a concessionary tax rate on income generated from qualifying activities. By reducing the tax burden for eligible companies, this incentive encourages them to invest in strategic sectors, conduct research and development, and drive economic growth in Singapore.
1. Company registered in Singapore and operating here;
2. Introduce technology, skill sets, or knowhow that are substantially more advanced than the average prevailing in Singapore; OR
3. Developing capabilities and expanding activities in Singapore; OR
4. Conducting HQ activities.
Benefits of the PC&DEI Tax Incentive
- An approved company under the PC&DEI is entitled to the tax exemption or a concessionary tax rate of 5% or 10% on income derived from qualifying activities.
- The incentive period is typically limited to five years. However, companies have the opportunity to apply for an extension of the incentive period if they demonstrate a commitment to undertake further expansion plans during this time.
- To ensure transparency and compliance, the company is required to maintain a separate account specifically for any non-qualifying activities carried out during the incentive period. Income generated from these non-qualifying activities will not be eligible for the tax incentive.
Eligibility Criteria for the PC&DEI Tax Incentive
The application for the PC&DEI is open to Singapore companies willing to make significant investments that contribute to the economy or advance capabilities towards globally leading industries. The concept of "significant investments" is evaluated on a case-by-case basis by the Economic Development Board.
To qualify for the incentive, companies are required to meet certain requirements:
Manufacturing projects must commit to fixed asset investments in plant, building, or equipment.
The company should create employment opportunities.
Business expenditures should generate positive spin-offs to the economy.
Companies should commit to growing capabilities, such as technology, skill sets, and know-how, within Singapore.
How to Apply for the PC&DEI Incentive
How We Can Help with the PC&DEI Tax Incentive
This series of articles regarding Singapore government incentives was prepared by CorporateServices.com, a leading Singapore-based corporate service provider. We offer a range of services for private limited companies in Singapore. Our team of experienced experts provides Singapore company registration and other incorporation-related services through our cutting-edge online platform.
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