Singapore Publishes Tax Guide on Enterprise Innovation Scheme

On 30 June 2023, the Inland Revenue Authority of Singapore (IRAS) published an e-Tax Guide on the Enterprise Innovation Scheme (EIS). The EIS was introduced by the Finance Minister in the Singapore 2023 Budget, and allows businesses engaging in research and development to: 

• claim enhanced/new tax deductions and/or allowances (collectively referred to
  as “enhanced deductions”) on qualifying expenditure incurred, or
• convert up to $100,000 of the total qualifying expenditure incurred for each Year of Assessment
  (YA) into cash at a conversion rate of 20%, in lieu of tax deductions/allowances.

The EIS is available from Year of Assessment (YA) 2024 to YA 2028. 

This article outlines the qualifying activities and expenditure caps of the EIS and deduction rules, amongst others. 

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