Yes. There is no minimum size requirement – what matters is whether the activity meets the statutory definition of R&D, not the scale of your operations.
Small businesses often benefit proportionately more, because the enhanced deduction is concentrated at the lower end of spending. Under the Enterprise Innovation Scheme (EIS), qualifying R&D conducted in Singapore attracts a 400% deduction on the first S$400,000 of expenditure per Year of Assessment (YA 2024 to YA 2028), with 250% applying beyond that cap.
The cash payout option is particularly relevant if your business is not yet profitable and so cannot use a deduction. You may convert up to S$100,000 of total qualifying expenditure across all EIS activities into a cash payout at 20%, capped at S$20,000 per YA, subject to a minimum spend of S$400 and employing at least three local employees. The election is irrevocable, and you cannot claim both a deduction and a payout on the same expenditure.
The activity must genuinely qualify – involving novelty or technical risk rather than routine improvement – and be documented. Apexia can assess eligibility and prepare the claim.