Short answers to the questions the academy is asked most about Singapore's R&D tax deductions and the Enterprise Innovation Scheme, grouped the way the country guide is organised: eligibility, costs and calculation, claiming and deadlines, and reviews. Each answer gives the rule in a sentence or two and links to the page that covers the subject in full, with the official sources. This page carries FAQPage structured data.
Eligibility
Who can claim R&D deductions in Singapore?
Businesses with qualifying R&D expenditure. The cash payout option also needs at least three full-time local employees, each earning a gross monthly salary of at least S$1,400. There is no registration and no minimum spend. See eligibility.
What counts as R&D?
Systematic, investigative and experimental study that involves novelty or technical risk, carried out in the field of science or technology to acquire new knowledge, or to use the results to produce or improve materials, devices, products, produce or processes. IRAS applies three requirements: objective, novelty or technical risk, and systematic study. See eligibility.
What is excluded?
Activities such as quality control, routine testing, market research and efficiency surveys are excluded, along with research in the social sciences or humanities, routine data collection, routine modifications and cosmetic or stylistic changes. See eligibility.
Is our software development R&D?
Only where it resolves a technical risk or achieves novelty in computer science or software engineering through systematic study. Routine development with established techniques, configuration and integration do not qualify. See industries.
Does the project have to succeed?
No. The definition looks at the objective and the technical risk at the outset and at whether the study was systematic. A project that fails to achieve its objective can still be R&D, and the R&D ends when the technical risk is resolved or the work is abandoned.
Does R&D done overseas qualify?
Yes, at the 100% base deduction, where it is related to the trade. Only R&D carried out in Singapore earns the enhanced tiers. See Singapore versus overseas.
Costs and calculation
How much is the deduction?
400% on the first S$400,000 of staff costs and consumables for qualifying R&D carried out in Singapore, each Year of Assessment from YA 2024 to YA 2028, and 250% above that, made up of the 100% base deduction and a 150% additional deduction. Other R&D expenditure earns 100%. See enhanced deductions.
Which costs earn the enhanced tiers?
Staff costs and consumables for R&D in Singapore, and 60% of fees to a Singapore R&D organisation, which IRAS treats as staff costs and consumables. Overheads, software, utilities and capital items do not: overheads and software earn the 100% base deduction and capital items go through capital allowances. See eligible expenditure.
Can we get cash instead of a deduction?
Yes, in part. The cash payout is 20% of up to S$100,000 of qualifying expenditure across EIS activities, so up to S$20,000 per Year of Assessment, for businesses with at least three full-time local employees earning at least S$1,400 a month. Converted expenditure is not also deducted. See cash payout option.
What did Budget 2026 change?
Budget 2026 added AI adoption as an EIS qualifying activity for YA 2027 and YA 2028: 400% deduction on up to S$50,000 a year, with no cash payout option. See Enterprise Innovation Scheme.
Do grants reduce the claim?
Expenditure funded by a government grant is not deductible to the extent of the grant. Grant programs are described on the grants and other incentives page.
Claiming and deadlines
Do we need to register or get approval?
No. Claim the enhanced deduction in the corporate income tax return. An R&D claim form, with project descriptions and a cost breakdown, accompanies claims above IRAS's threshold, and IRAS recommends preparing the same information for smaller claims. See how to claim.
What is the deadline?
The filing due date of the corporate income tax return, 30 November of the Year of Assessment. The cash payout is applied for after filing the return and before the filing due date. See deadlines.
Which Year of Assessment do we claim in?
The one following the financial year in which the expenditure was incurred: expenditure in the financial year ending at any point in 2025 is claimed in YA 2026, with the return due by 30 November 2026. A company with a June year end therefore has a longer run-up than one with a December year end. See deadlines.
Reviews
What does IRAS check?
Whether each project meets the three requirements, often with technical expert input, and whether the expenditure is in the right tier and location, supported by time and cost records. Objections go to IRAS within 2 months and then to the Income Tax Board of Review. See reviews and audits and IRAS requirements.
Related pages
Official sources
Educational content only, not tax advice. See the disclaimer.