Enterprise Innovation Scheme 

To foster companies to engage in R&D and Innovation activities, the government has announced the deployment of the Enterprise Innovation Scheme (EIS). Under the EIS, existing tax measures, such as the R&D Tax Measure, will be enhanced and a new tax measure will be introduced. 

By providing tax deductions and enhanced benefits, the EIS encourages businesses to invest in five key categories: 

  • Qualifying R&D undertaken in Singapore 
  • Registration of intellectual property (IPs) 
  • Acquisition and licensing of IP rights (IPRs) 
  • Training initiatives 
  • Innovation projects in collaboration with polytechnics, the Institute of Technical Education (ITE), or other qualified partners 

If you are interested in learning more about the Enterprise Innovation Scheme and its benefits, please reach out to our experts and request a free diagnostics session! 

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Summary of the tax benefit for each category: 

  • Amount of Tax Deductions and/ or Allowances Granted from YA 2024 to YA 2028 
  • 100% tax deduction on R&D expenditure plus 
  • Additional 300% tax deduction on first $400,000 of qualifying R&D expenditure plus 
  • Additional 150% tax deduction on balance of qualifying R&D expenditure in excess of $400,000 
  • 400% tax deduction on first $400,000 of qualifying IP registration costs plus 
  • 100% tax deduction on balance of qualifying IP registration costs  in excess of $400,000 
  • 400% allowance and/ or tax deduction on first $400,000 (combined cap) of qualifying IPR acquisition costs and/ or qualifying IPR licensing expenditure plus 
  • 100% WDA on balance of qualifying IPR acquisition costs in excess of claim for enhanced allowances plus 
  • 100% tax deduction on qualifying IPR licensing expenditure in excess of claim for enhanced tax deduction 
  • 400% tax deduction on first $400,000 of qualifying training expenditure plus 
  • 100% tax deduction on balance of qualifying training expenditure in excess of $400,000 and all other training expenditure 
  • 400% tax deduction on first $50,000 of qualifying innovation expenditure 

*Note: The cap of S$400,000 will be determined on a per-activity basis. This means that if a business incurs qualifying expenditure across all five categories, it can claim enhanced deductions on a total of up to $1,650,000 [($400,000 x 4) + $50,000] of qualifying expenditure incurred. 

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