Singapore: New enterprise innovation scheme under 2023 budget
The scheme is effective for year of assessment 2024 to year of assessment 2028.
The scheme is effective for year of assessment 2024 to year of assessment 2028.
Singapore’s 2023 budget introduced a new enterprise innovation scheme to encourage businesses to engage in research and development (R&D), innovation, and capability development activities. Read TaxNewsFlash
The scheme provides for 400% tax deductions/allowances on the first $400,000* of qualifying expenditures per year of assessment (YA) for each of the following five key activities in the innovation value chain:
- Local R&D activities
- Registration of intellectual property (IP)
- Acquisition and licensing of IP rights (for companies with less than $500 million of revenue)
- Innovation projects carried out with partner institutions (benefit capped at $50,000 per YA)
- Qualifying training courses aligned to the skills framework
The scheme is effective for YA 2024 to YA 2028.
Read an April 2023 report [PDF 266 KB] prepared by the KPMG member firm in Singapore
*$ = Singapore dollar
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