Staff training costs incurred for your business are generally deductible against income in the normal way. Beyond the ordinary deduction, Singapore has offered enhanced support to encourage businesses to build capabilities.
Under the Enterprise Innovation Scheme (EIS), qualifying training expenditure – for courses aligned with the Skills Framework and delivered by approved providers – can attract enhanced tax deductions well above the amount spent, subject to annual expenditure caps. Eligible businesses may also choose, within limits, to convert qualifying spend into a cash payout instead of a deduction.
Separately, the SkillsFuture Enterprise Credit and various SkillsFuture Singapore subsidies can offset the out-of-pocket cost of approved training, and course-fee grants may reduce the net expense before the tax treatment is even considered.
Because the enhanced deductions have specific qualifying conditions and caps, it pays to plan training spend with the rules in mind. Apexia can advise on what qualifies and ensure the enhanced deductions or payouts are claimed correctly.