This track is for finance managers, tax leads and accountants preparing a Singapore R&D claim in-house. Singapore gives enhanced tax deductions for qualifying R&D, including under the Enterprise Innovation Scheme (EIS), with an option to convert part of the expenditure into a cash payout; they are administered by the Inland Revenue Authority of Singapore (IRAS). Three things change the program's shape: the benefit is a deduction, valued at the 17 percent corporate tax rate; the deduction comes in tiers that depend on the cost category and on where the R&D was performed; and there is no registration, so the claim rides in the corporate income tax return by its filing due date.
How the Singapore rules change the program
| Module | What is different in Singapore | Country page |
|---|---|---|
| Scheme mechanics | 400% deduction 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; expenditure above that gets 250%, made up of the 100% base deduction and a 150% additional deduction. | Enterprise Innovation Scheme |
| Cost capture | Staff costs comprise salaries, bonuses, allowances and employer CPF contributions of employees directly engaged in the R&D, excluding directors' fees. Consumables are materials and items used up or transformed in the R&D. | Enhanced deductions |
| Staff time apportionment | Staff costs are apportioned where the employee is not wholly engaged, supported by records of the time spent on R&D, such as timesheets or project allocation records. | Documentation |
| Contractors and overseas costs | For R&D outsourced to an R&D organisation in Singapore, IRAS treats a fixed portion of the fee (60 percent) as qualifying staff costs and consumables. R&D undertaken outside Singapore is deductible at 100 percent under section 14C where related to the trade. | R&D done in Singapore vs overseas |
| Grants and subsidised expenditure | R&D expenditure met by a government grant or subsidy is not deductible to the extent of the grant, and the enhanced deductions apply only to the portion of qualifying expenditure borne by the company. | Grants and other incentives |
| Calculations | Apply the tiers, then value the deduction at the 17 percent corporate income tax rate. Cash payout: 20% of up to S$100,000 of qualifying expenditure, so up to S$20,000 per Year of Assessment; expenditure converted is not also deductible. | Cash payout option |
| Working with technical teams | IRAS applies three requirements: the objective is to acquire new knowledge, create new products or processes or improve existing ones; the study involves novelty or technical risk; and it is a systematic, investigative and experimental study in a field of science or technology. | Eligibility |
| Filing and deadlines | No registration. Claim in the corporate income tax return by 30 November of the Year of Assessment, and apply for any cash payout after filing the return and before the filing due date. | Deadlines |
| Reviews and audits | IRAS may request further information before finalising the assessment, including project descriptions and the expenditure breakdown, and may seek the views of technical experts. | IRAS requirements |
Forms and deadlines
| Form or step | Timing | Country page |
|---|---|---|
| Form C-S, Form C-S (Lite) or Form C | Filing due date 30 November of the Year of Assessment. | How to claim |
| R&D claim form | Required for larger R&D claims, giving project descriptions and a breakdown of expenditure; check IRAS guidance for the current threshold. | IRAS requirements |
| Apply for EIS Cash Payout service | After filing the income tax return and by the filing due date of the Year of Assessment. The payout is paid after approval of the application. | Cash payout option |
| Objection, additional assessment and records | Objection within 2 months of the notice of assessment. IRAS may make an additional assessment within 4 years after the end of the Year of Assessment. Records are kept for 5 years from the relevant Year of Assessment. | Reviews and audits |
Key rules to know
Category and location set the tier. Only staff costs and consumables for R&D carried out in Singapore reach the 400% and 250% tiers, and the S$400,000 threshold is shared between them per Year of Assessment. Whether R&D is carried out in Singapore is determined by where the R&D activities are physically performed.
The cash payout has a people test and a one-way door. It needs at least three full-time local employees, Singapore Citizens or Permanent Residents with CPF contributions, each earning a gross monthly salary of at least S$1,400 and employed for six months or more in the basis period.
A new category without a payout. 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.
Worked example
Illustrative example. Jurong Photonics Pte Ltd, a hypothetical company with a 31 December 2025 financial year end, claims for YA 2026 and plans to file Form C in October 2026 so that a cash payout application, if wanted, can follow before 30 November 2026.
| Cost | Amount borne | Tier | Deduction |
|---|---|---|---|
| Singapore engineers' remuneration and employer CPF, 60% of time on the project per timesheets, total S$500,000 | S$300,000 | Staff costs: part of the first S$400,000 at 400% | S$1,200,000 |
| Consumables used in Singapore trials, S$200,000 less a S$50,000 government grant | S$150,000 | S$100,000 completes the 400% tier, S$50,000 at 250% | S$525,000 |
| Singapore R&D organisation fee | S$100,000 | 60 percent (S$60,000) at 250%; 40 percent (S$40,000) at 100% | S$190,000 |
| Overseas laboratory testing, related to the trade | S$80,000 | Outside Singapore, 100% | S$80,000 |
| Rent, utilities and software attributable to the project | S$70,000 | Other R&D expenditure, 100% | S$70,000 |
| Test equipment | S$120,000 | Capital allowances under section 19 or 19A | 0 |
| Total | S$700,000 | S$2,065,000 |
The S$50,000 grant comes off the consumables before any tier is applied. Staff costs of S$300,000 and the first S$100,000 of consumables fill the S$400,000 threshold at 400%; the remaining S$50,000 of consumables and the S$60,000 qualifying portion of the outsourced fee take 250%. At the 17 percent corporate income tax rate the S$2,065,000 deduction is worth S$351,050 of tax, against S$119,000 for a plain 100% deduction of the S$700,000, a benefit of S$232,050.
The S$400,000 cap is shared across all qualifying R&D expenditure for the Year of Assessment, including the qualifying portion of outsourced fees; the order in which costs fill the cap does not change the total deduction.
Jurong has four full-time local employees above S$1,400 a month, so it could convert S$100,000 of in-Singapore staff costs into S$20,000 of non-taxable cash; that would remove S$400,000 of deduction, worth S$68,000 of tax to a profitable company, so Jurong keeps the deduction. Form C goes in by 30 November 2026.
Related country guide pages
Self-check questions
Answer each question, then open it to compare.
A company has S$300,000 of staff costs and S$150,000 of consumables on R&D carried out in Singapore in the basis period for YA 2026. What deduction does it get on those costs?
Which costs earn only the 100% base deduction, even when the R&D is carried out in Singapore?
The company outsources part of its project to an R&D organisation in Singapore for S$100,000. How is the fee treated?
A profitable company is considering converting S$100,000 of in-Singapore staff costs into the EIS cash payout. What does it receive and what does it give up?
What are the conditions and the timing for a cash payout application?
How does a government grant towards the consumables affect the claim?
Official sources
- Enterprise Innovation Scheme (EIS)Inland Revenue Authority of Singapore
- IRAS e-Tax Guide: Enterprise Innovation SchemeInland Revenue Authority of Singapore
- Research and Development (R&D) expenditureInland Revenue Authority of Singapore
- Filing corporate income tax returnsInland Revenue Authority of Singapore
- Income Tax Act 1947, sections 14C and 14DSingapore Statutes Online
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Educational content only, not tax advice. See the disclaimer.