Companies carrying out qualifying research and development in Singapore can claim enhanced tax deductions well above the amount actually spent.
The baseline position is a 100% deduction under Section 14C plus an additional 150% under Section 14D – a total of 250% – for qualifying R&D conducted in Singapore.
Under the Enterprise Innovation Scheme (EIS), this is enhanced further for the Years of Assessment 2024 to 2028: qualifying R&D expenditure attracts a 400% deduction on the first S$400,000 incurred in each YA. Expenditure above that cap continues to attract the 250% (100% base plus 150% additional) deduction.
Eligible businesses may instead 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 a three-local-employee condition. The election is irrevocable and you cannot claim both a deduction and a payout on the same expenditure.
R&D claims are scrutinised, so the project must meet the statutory definition and be properly documented. Apexia can assess whether your activities qualify and prepare the claim.