We engaged FI Group Singapore for tax advisory and consultancy services, and the experience has been outstanding. Their expert understanding of the R&D tax incentive enabled us to unlock significant savings. They were responsive, professional, and flexible in meeting our needs. I would highly recommend FI Group to any business looking to optimize tax incentives.
Enterprise Innovation Scheme Eligibility Criteria
EIS Project Eligibility
The Enterprise Innovation Scheme (EIS) rewards companies that invest in R&D and innovation in Singapore with enhanced tax benefits, up to a 400% tax deduction on qualifying R&D expenditure, provided your project meets IRAS’s eligibility criteria.
EIS Project Eligibility Criteria
To qualify for R&D Tax deductions in Singapore, projects must go beyond routine work. They should aim to create or improve products or processes, introduce something new to Singapore, address technical uncertainties, and involve structured experimentation.
| Clear Objective | Your project must aim to acquire new knowledge, create new products or processes, or improve existing products or processes. Routine engineering, cosmetic changes, or commercial tweaks do not qualify. |
| Novelty (in Singapore) | The outcome should be first-of-its-kind in Singapore, not just an adoption of an existing solution. IRAS assesses whether the work introduces something new to the local market or technical field. |
| Technical Risk / Uncertainty | The project must address scientific or technological uncertainty that cannot be readily resolved by a competent professional at the outset. If the solution is obvious or easily achievable with existing knowledge, it will not qualify. |
| Systematic Investigation & Experimentation (SIE) | Activities must involve planned, structured tests designed to discover or validate something not known or rarely established in the relevant field, such as designing experiments, setting hypotheses, iterating trials, and documenting results. |
💡 Tip: Not every innovation activity qualifies. Marketing rollouts, UI redesigns without technical complexity, or routine quality control usually fail the R&D test.
Who Can Apply?Book a meeting
To qualify for R&D Tax Incentives, your company must:
- Companies registered and operating in Singapore
- Engaged in qualifying activities during the basis period
- Filing Income Tax Returns on time
Examples of activities that often qualify
- Designing a new algorithm, model, or process where performance cannot be predicted without experimentation
- Developing a new material formulation to achieve previously unattained properties, requiring iterative lab trials
- Re-engineering a manufacturing process to overcome physical or technical limitations, involving controlled tests and prototypes
Each example reflects novelty in Singapore, technical uncertainty, and systematic experimentation.
Evidence IRAS expects (documentation checklist)
To support your claim, maintain contemporaneous records such as:
- Project charters stating objectives and uncertainties
- Experiment logs and test protocols
- Stage-gate decisions and failure analyses
- Versioned technical designs and reports
For cost documentation, see EIS Qualifying Costs
How the benefits work
| Benefit type | Details |
| 400% Tax Deduction | Additional 150% deduction on the first S$400,000 of qualifying R&D expenditure, on top of existing deductions. |
| Optional Cash Conversion | Convert up to S$100,000 of qualifying spend into a 20% cash payout (max S$20,000 per YA). Ideal for loss-making or early-stage firms. |
Find out more here: EIS Cash Payout
Our Methodology
Our structured methodology ensures clarity, compliance, and efficiency:
- Eligibility Assessment: Identify qualifying projects, activities, expenses, and investments.
- Financial Calculation: Review costs and compute deductible R&D claim amounts.
- Technical Justification: Draft project descriptions to meet IRAS compliance requirements.
- R&D Form Delivery: Prepare and submit complete R&D claim forms to IRAS.
- Claim Report: Consolidate all supporting documents for potential IRAS enquiries.
- Post-Submission Support: Assist with IRAS queries and defend your R&D claim
Our Methodology
Our structured methodology ensures clarity, compliance, and efficiency:
- Eligibility Assessment: Identify qualifying projects, activities, expenses, and investments.
- Financial Calculation: Review costs and compute deductible R&D claim amounts.
- Technical Justification: Draft project descriptions to meet IRAS compliance requirements.
- R&D Form Delivery: Prepare and submit complete R&D claim forms to IRAS.
- Claim Report: Consolidate all supporting documents for potential IRAS enquiries.
- Post-Submission Support: Assist with IRAS queries and defend your R&D claim
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Enterprise Innovation Scheme (EIS) Cash Payout for R&D in Singapore: Complete Guide 2025
