Singapore

R&D Tax Incentive

Description of Incentive

The government in Singapore provide a tax offset for R&D performed in-house, is outsourced or is part of a cost-sharing agreement, providing that the taxpayer is the beneficiary of the R&D activities.

Most R&D expenditure will receive a 100% tax offset. However, local expenditure incurred for staff salaries and consumables is eligible for the enhanced R&D tax incentive. This provides an enhanced tax deduction of 250% for qualifying expenditure. No expenditure cap is imposed.

Eligibility Criteria

Detailed project reports must be submitted to substantiate each project. Taxpayers must lodge an R&D claim for each income tax return for the relevant year. Documentation and corresponding R&D expenditure breakdowns must be retained for each activity.

To be eligible for the R&D tax incentive, the following criteria must be met, under Section 2 of the Income Tax Act.

1. The project objective is to:

a) Acquire new knowledge;

b) Create new products or processes; or

c) Improve existing products or processes.

2. The project involves novelty or technical risk; and

3. The project involves a systematic, investigative and experimental study in the field of science and technology.

Services

Swanson Reed offers the following services:

• Advice on tax preparation relevant to claiming the R&D tax credits incentive
• Preparation of documents relating to filing and substantiating a R&D taxation claim
• R&D tax advice and consultations
• R&D tax claim planning and preparation

For a full range of services in relation to the credit, please click here.