News

For all qualifying companies in Singapore, the Estimated Chargeable Income (ECI) filing is one of the first mandatory steps in the annual Corporate Income Tax (CIT) cycle. While often viewed as a mere compliance requirement, a strategic approach to ECI submission presents a significant opportunity to substantially enhance cash flow management right from the start of the financial year. 

This article details why integrating your anticipated claim under the Enterprise Innovation Scheme (EIS) into your ECI filing for Year of Assessment (YA) 2026 is the most prudent financial decision for your business. 

 

The ECI Deadline: Understanding the Compliance Timeline 

Companies with annual revenue exceeding S$5 million or those with a positive estimated chargeable income are generally obligated to file their ECI within three months after their Financial Year End (FYE). 

• Standard Example: A company with a 31 December FYE must file its ECI by 31 March of the following year. 

• The Early Filing Incentive: Singapore registered companies enrolled in the GIRO scheme can maximise the number of tax instalment payments granted by the IRAS (Inland Revenue Authority of Singapore) by filing earlier, ideally within one month of the FYE.  

Upon ECI submission, IRAS issues a Notice of Assessment (NOA), which sets the quantum for your company’s monthly CIT instalment plan. 

 

The Cost of Delayed Tax Claiming 

A common pitfall in Singapore tax compliance is the practice of estimating ECI using only core revenue and deductible expenditure, reserving complex claims like enhanced tax deductions for the final tax return submission (Form C-S/C) in November. 

This conservative approach has a direct negative impact on your working capital: 

1. Inflated Tax Liability: Your estimated chargeable income is higher than necessary. 

1. Increased Instalment Payments: The resulting NOA mandates higher monthly tax instalments throughout the year. 

The consequence is clear: your company pays more tax than is ultimately due, tying up capital until IRAS processes the final claim and issues a refund months later. This is an unnecessary strain on your business cash flow. 

 

The Strategic Advantage: Claiming EIS in ECI 

The Enterprise Innovation Scheme (EIS), available from YA 2024 to YA 2028, is a robust government incentive offering enhanced tax deduction benefits for qualifying innovation and Research & Development (R&D) activities. 

 

1. MaximiseYour Enhanced Deduction 

The EIS provides a 400% tax deduction on the first S$400,000 of annual qualifying expenditure across various categories, including: 

• Qualifying R&D undertaken in Singapore (under Sections 14C and 14D of the Income Tax Act). 

• Registration of Intellectual Property (IP). 

• Acquisition and licensing of Intellectual Property Rights (IPRs). 

By accurately factoring in this 400% tax deduction on your projected R&D expenditure or innovation costs when calculating your ECI, you immediately reduce your estimated Chargeable Income. This results in a proportionally lower tax assessment from IRAS, leading to a smaller, more manageable tax instalment plan. 

Scenario	ECI Calculation Approach	Tax Instalment Impact	Cash Flow Outcome
Traditional Method	Excludes EIS Claim	Higher Initial Payments	Capital is locked up with IRAS
Strategic Method	Includes EIS Claim	Lower Initial Payments	Capital is retained for business operations

2. AcceleratedAccess to the EIS Cash Payout 

The EIS offers eligible companies the option to convert up to S$100,000 of total qualifying expenditure per YA into a non-taxable EIS Cash Payout of S$20,000 (20% conversion ratio), subject to meeting certain local employment conditions. 

Crucially, submitting your EIS claim documentation early alongside your ECI, rather than waiting for the November Form C-S/C deadline, allows your claim to enter the IRAS review pipeline outside of the peak corporate tax season. 

This earlier submission often leads to a speedier review process, which is particularly important if your business relies on the EIS Cash Payout to finance ongoing operations or future innovation projects. 

 

Expert Guidance is Essential for Maximised ECI and EIS Claims 

A successful ECI filing that incorporates the EIS benefit requires a precise and compliant estimation of your qualifying expenditure. Miscalculation or insufficient documentation can lead to a revised assessment and unnecessary complications. 

FI Group Singapore are specialists in R&D and innovation tax incentives. We help companies: 

• Identify and document all eligible R&D expenditure and innovation costs with high accuracy. 

• Calculate the optimised ECI by correctly applying the 400% tax deduction. 

• Ensure compliance to secure the maximum benefit and protect your Singapore Corporate Tax position. 

Take Control of Your Tax and Capital. 

Don’t wait, book a meeting with our experts to review your eligibility and strategic options for claiming the Enterprise Innovation Scheme in your YA 2026 ECI filing. 

The Singapore government has unveiled the Research, Innovation and Enterprise (RIE) 2030 Plan, the nation’s most ambitious five-year blueprint for scientific development and technological transformation. With a massive commitment of S$37 billion, a significant increase from the previous RIE 2025 plan, understanding these national priorities translates directly into public funding opportunities for companies that can effectively align their R&D strategy with the plan’s key domains.  

For multinational corporations (MNCs) and local enterprises alike, RIE 2030 sets the definitive agenda for where public-private research partnerships will thrive, ensuring Singapore remains a vital hub for innovation in the volatile global landscape. 

 

The RIE 2030 Commitment: S$37 Billion R&D Injection  

The RIE 2030 plan is the nation’s strategic roadmap for the next five years, designed to strengthen national competitiveness and societal resilience by prioritizing key scientific and technological domains. 

This commitment represents an exponential evolution in Singapore’s long-term investment in R&D. Since the RIE masterplans began in 2010, the financial allocation has consistently increased, growing from S$16 billion in RIE 2015 (2011–2015) and S$28 billion in the current RIE 2025 plan (2021–2025), to the upcoming S$37 billion commitment for RIE 2030 (2026–2030). This massive scaling of the budget underscores Singapore’s ambition to remain a global R&D hub. Understanding these national priorities translates directly into public funding opportunities for companies that can effectively align their R&D strategy with the plan’s key domains. 

Source: National Research Foundation 

 

Key Budget Allocation Snapshot 

The funding allocation directly reveals the government’s priorities, highlighting areas where companies can expect the most robust support and collaboration: 

Allocation Area	Budget Share	Focus for Companies
Mission-Oriented R&D (Four Domains)	29%   (S$10.8 Billion)	Direct research in key economic and social sectors.
Innovation & Enterprise	20%   (S$7.5 Billion)	Supports commercialization, venture building, and deep tech cluster growth. Crucial for grants and scaling.
Foundational Research	24%   (S$8.9 Billion)	Strengthens university and A*STAR capabilities, offering partnership opportunities.
Talent Development	10%   (S$3.5 Billion)	Nurturing R&D talent; supporting manpower schemes and research attachments.

 

Strategic Access: The Four Pillars of R&D Opportunity 

RIE 2030 maintains and sharpens the focus on four key domains. For companies seeking to anchor their R&D activities in Singapore, aligning your innovation strategy with these pillars is paramount for securing funding and maximizing impact. 

1. Manufacturing, Trade & Connectivity (MTC) 

This domain aims to reinforce Singapore’s position as an advanced manufacturing and logistics powerhouse. 

• Opportunities: High-value corporate R&D, advanced packaging, supply-chain technologies, robotics, AI applications in manufacturing, and emerging sectors like the space economy and bioeconomy. 

• Strategic Access: The new Semiconductor RIE Flagship is a dedicated national program aimed at deepening local capabilities, offering unparalleled opportunities for industry leaders and deep tech startups to co-develop world-leading technologies. 

2. Human Health & Potential (HHP) 

A focus on building Singapore as a biomedtech and biomanufacturing hub, while addressing demographic shifts. 

• Opportunities: Precision health, disease prevention and treatment, translational research, and cognitive development. 

• Strategic Access: The Maximising Healthy and Successful Longevity RIE Grand Challenge focuses on active ageing. Companies working on preventative health technologies, diagnostics, and age-related cognitive solutions will find strong governmental support and data platforms for research validation. 

3. Urban Solutions & Sustainability (USS) 

Driving Singapore’s transition to a climate-resilient and sustainable future. 

• Opportunities: Low-carbon technologies, climate science and adaptation, real-world technology deployment, and building Centres of Excellence focused on green solutions. 
• Strategic Access: This pillar prioritizes the deployment of technologies in real-world testbeds, creating fast-track opportunities for companies with market-ready sustainable solutions. 

4. Smart Nation & Digital Economy (SNDE) 

Deepening capabilities in frontier digital technologies to drive the Smart Nation ambition. 

• Opportunities: Advanced AI and compute, quantum technologies, digital trust and security, and cross-sector digital deployment. 

• Strategic Access: This domain directly invests in local AI research talent and infrastructure, enabling companies to partner with public institutions to accelerate AI engineering and deployment across all sectors. 

 

Direct Funding Channels: Grant and Enterprise Opportunities 

The RIE 2030 plan explicitly earmarks S$7.5 billion for Innovation & Enterprise, signalling a clear commitment to moving research out of the lab and into the market. 

For Companies, This Means: 

• Anchor R&D with Flagships: Participating in RIE Flagships (e.g., Semiconductors) allows companies to co-fund and co-develop R&D programs alongside government agencies and A*STAR, ensuring their research priorities are aligned with national strategic investment. 
• Accessing Commercialization Funds: The emphasis on Innovation & Enterprise includes support for venture building, building competitive deep tech clusters, and strengthening the pipeline of commercially viable technologies. This translates to direct or indirect funding access through various government-backed schemes (e.g., those managed by Enterprise Singapore and NRF). 
• Leveraging Tax Incentives: While RIE is primarily a funding plan, the R&D investments strengthen Singapore’s attractiveness for existing tax incentives like the Enterprise Innovation Scheme (EIS), which is significantly enhanced when R&D activities are clearly anchored and aligned with national priorities. 
• Talent Subsidies and Manpower Schemes: The S$3.5 billion for Talent Development provides opportunities to utilize grant-supported talent schemes, placing high-calibre researchers and engineers into corporate labs and deep tech start-ups. 

 

How FI Group Helps Your Company Capitalise on RIE 2030 

The S$37 billion RIE 2030 plan is a monumental opportunity, but navigating the complex landscape of government funding, program alignment, and R&D strategy can be challenging. 

As experts in innovation funding FI Group Singapore is uniquely positioned to help your company create and leverage these opportunities: 

• Strategic Alignment: We help you map your core R&D projects directly to the specific pillars, Flagships, and Grand Challenges of RIE 2030, significantly improving your success rate in obtaining support. 
• Grant Acquisition: Our team of experts specializes in identifying, structuring, and applying for grants relevant to the RIE 2030 priorities, including schemes that fund R&D activities, talent development, and commercialization efforts. 
• Maximizing Returns: We ensure your project documentation meets the rigorous evaluation criteria, which now focus not just on commercial output, but also on long-term scientific impact and contribution to national strategic outcomes. 

Don’t let this five-year window of unprecedented investment pass your company by. The time to integrate your innovation agenda with RIE 2030 is now. 

To learn how FI Group can strategize your R&D projects to secure funding and establish a lasting strategic R&D foothold in Singapore book a meeting with out experts.  

Why Singapore–UK R&D collaboration matters 

Singapore and the UK have built a strategic partnership around science, technology and innovation, backed by joint R&D calls and complementary tax incentives. For CFOs, this corridor is a practical route to fund international expansion, test products in two sophisticated markets and secure non-dilutive capital at group level. FI Group has strategic R&D Tax and Grants teams in over 20 countries around the world, including a specialist team of innovation funding experts in the UK. 

How do Singapore and the UK collaborate on R&D funding? 

Singapore and the UK collaborate through long standing science partnerships, a digital economy agreement and regular joint R&D calls co-funded by Innovate UK and Enterprise Singapore. These programmes back business led industrial research that can scale in both markets and internationally. 

Strategic frameworks linking Singapore and UK innovation 

The Partners in Science programme launched in 2004 created the first structured channel for UK–Singapore research links, focusing on joint projects and mobility of scientists. 

In 2023 the two Prime Ministers signed a Strategic Partnership that explicitly elevates cooperation on research, science, innovation and technology. This sits alongside pillars on economic, defence and green economy collaboration, signalling that innovation is a core diplomatic priority rather than a side topic. 

The relationship is reinforced by a pioneering Digital Economy Agreement, which reduces friction for cross border data flows, digital trade and fintech, making it easier for digital R&D projects to operate seamlessly across Singapore and the UK. 

Joint funding programmes for cross border innovation 

At the operational level, joint programmes translate strategy into funding: 

• UK–Singapore Collaborative R&D Calls provide up to £5 million per call from Innovate UK for UK participants, matched by Enterprise Singapore support on the Singapore side. 

• Projects must be business led industrial research, producing new products, processes or services with strong market potential in Singapore, the UK or globally. 

• Each project must include at least one UK and one non-linked Singapore company, ensuring genuine cross border collaboration. 

• Sectors have included advanced manufacturing, digital technologies, health and sustainability, aligned with both countries’ industrial strategies. 

For a Singapore headquartered business, these calls are a way to de-risk market entry into the UK by sharing costs with a local partner and two funding agencies. 

Complementary R&D tax incentives in Singapore and the UK 

On top of grants, both jurisdictions run powerful R&D tax regimes. 

In Singapore, the Enterprise Innovation Scheme (EIS) significantly enhances existing R&D deductions from YA 2024 to YA 2028. Companies can benefit from elevated deductions on qualifying R&D, innovation and capability development spend, and in some cases convert part of that benefit into a cash payout. 

More broadly, Singapore combines volume based R&D super-deductions with other innovation incentives. FI Group’s international benchmarking shows that headline support can reach around a 68 percent after tax benefit on the first S$400k of qualifying spend, putting Singapore among the most generous regimes globally. 

The UK, meanwhile, is shifting to a single R&D expenditure credit model with a 20 percent headline rate and enhanced support for R&D intensive SMEs. That new structure sits on top of a large, mature R&D tax credit system, which supported around £46.1 billion of R&D expenditure in 2023–24. 

For CFOs, the opportunity is to design projects that qualify under both systems while respecting each tax authority’s rules on cost allocation and avoiding double counting. 

 

Why the UK is a critical partner for Singapore based innovators 

For Singapore, the UK is more than a historical partner. It is a gateway to European and transatlantic markets, with a deep science base and sophisticated capital markets. 

From a Singapore CFO’s perspective, the UK offers: 

• World class universities and research institutes, ideal partners for joint R&D programmes. 

• A large, innovation intensive economy in sectors like life sciences, fintech, advanced manufacturing and clean energy. 

• Access to grants via Innovate UK, often structured for collaborative, late stage industrial research. 

• A reformed R&D tax credit regime that can sit alongside Singapore’s incentives in group planning. 

Singapore’s position as an Asian hub and the UK’s role as a European and global financial centre create a natural symmetry. Structuring R&D and innovation funding across both can give CFOs more flexibility on where to locate teams, IP and capital. 

 

The CFO perspective: managing cross border complexity 

For all the opportunity, cross border R&D funding is not simple. 

CFOs of Singapore headquartered groups typically face: 

• Regulatory complexity and compliance risk in dealing with two tax authorities with different definitions of qualifying R&D, documentation standards and audit practices. 

• Fragmented grant and tax timelines, with Innovate UK calls, Enterprise Singapore support, and two corporate tax calendars to coordinate. 

• Transfer pricing and cost allocation challenges, ensuring that costs and benefits are aligned across entities and there is no double benefit or loss of relief. 

• Internal coordination issues, particularly where R&D teams in the UK, Singapore and other regions do not speak a common tax and funding language. 

Without a structured approach, it is easy to miss incentives entirely, or to invite an enquiry because local claims are inconsistent. 

 

How FI Group supports Singapore headquartered companies with UK collaborations 

FI Group specialises in R&D and innovation public funding across more than a dozen jurisdictions, including Singapore and the UK. We combine local tax and grant expertise with a single global methodology, so group finance teams get a coherent view of incentives instead of a patchwork of local advice. 

For Singapore based companies collaborating with UK partners, our teams typically: 

• Map the full incentive landscape across both countries, including R&D tax, grants and relevant sector schemes. 

• Design a cost allocation and transfer pricing framework that satisfies both IRAS and HMRC expectations while maximising eligible spend. 

• Support applications to UK–Singapore Collaborative R&D Calls, aligning the technical and commercial narratives on both sides. 

• Build audit ready documentation that can withstand scrutiny from either authority. 

FI Group’s global teams have supported more than 15,000 clients and secured over €2 billion in tax incentives and grants in a single year, giving us a broad view of what “good” looks like in cross border R&D funding. 

“When a Singapore headquartered business collaborates with the UK, you are no longer optimising a single regime. You are designing a funding architecture across currencies, tax rules and agencies. The companies that win are the ones that treat this as a strategic design problem, not an afterthought.”
Dr Fawzi Abou Chahine, Funding Director, FI Group UK 

Global reach. Local expertise. Your HQ sees the full picture. Your teams feel the local support. 

 

FAQs: Singapore–UK collaboration for R&D and innovation funding 

Before the detailed questions, make it explicit that every funding case is fact specific and that cross border projects will always need tailored advice. 

What types of projects are funded under UK–Singapore Collaborative R&D Calls? 

These calls support business led industrial research that can lead to new products, services or processes with strong market potential in Singapore, the UK or globally. Projects must be collaborative, involve at least one company in each country, and focus on genuine technological development rather than routine work. 

Can a single project benefit from both Singapore’s EIS and UK R&D tax relief? 

Yes, in principle the same underlying R&D can qualify in both jurisdictions, provided the costs are correctly allocated, there is no double benefit in either tax system and group transfer pricing is aligned. The claim mechanics are different in each country, so CFOs should model scenarios and document the allocation rationale carefully. 

How should Singapore CFOs manage FX and cash flow when using UK grants? 

Collaborative calls typically pay out against milestones and claims in local currency. Singapore HQs should forecast FX exposure, align grant claim timings with tax instalments in both countries and ring fence contingency for delays. A consolidated view of group funding flows is essential to avoid liquidity surprises. 

Which sectors are most active in Singapore–UK R&D collaboration? 

The most active areas reflect both countries’ industrial priorities, including life sciences, digital and AI, advanced manufacturing, financial technology and net zero technologies such as energy storage and low carbon industrial processes. These align with the focus of joint R&D calls and the broader strategic partnership. 

When should we involve an external advisor like FI Group? 

The best time is before you finalise the consortium structure, workshare and budget. That allows you to optimise which entity leads, where IP will sit, how costs are allocated and which mix of grant and tax incentives to target. Retrofitting funding design once the project has started is always more expensive. 

 

From Preferential Tax Rates to a New Investment Framework 

For decades, Singapore’s appeal for international investors rested on its clear and competitive tax regime.
Through the Pioneer Certificate Incentive (PC) and the Development and Expansion Incentive (DEI), eligible companies could enjoy corporate income tax rates as low as 5% or 10%. The approach was straightforward and effective. In exchange for lower tax rates, multinational companies committed to invest in innovation, job creation, and capability building in Singapore. 

Many European and French groups built their Asia-Pacific operations under these schemes. However, the introduction of the OECD’s BEPS 2.0 reforms has changed this model. 

The Global Minimum Tax (GMT), under the Pillar Two framework, requires large multinational groups to maintain an Effective Tax Rate (ETR) of at least 15% in every jurisdiction. When a subsidiary’s ETR falls below that level, the home country, including France, can impose a Top-up Tax to bring the total tax back to 15%. Traditional low-rate incentives can therefore lose their value at the group level. 

To maintain competitiveness, Singapore announced in Budget 2024 a new generation of investment incentive: the Refundable Investment Credit (RIC). The Economic Development Board (EDB) released the first detailed factsheet in December 2024, and by September 2025 the RIC legislation was fully enacted. With the framework now official and operational, it is an ideal moment to explore what the RIC means for French multinational corporations (MNCs) planning future investments in Singapore. 

 

Why the Global Minimum Tax Changes Everything 

For French MNCs, the new global tax landscape is not simply a compliance challenge. It directly affects the financial outcome of overseas investments.
Under the GloBE rules, if a Singapore subsidiary receives a tax incentive that lowers its ETR below 15%, the French parent must pay a Top-up Tax in France. The result is neutral cash flow and no lasting benefit from the local incentive. 

Tax executives now need to prioritise incentives that create real economic value without lowering the ETR. Singapore’s Refundable Investment Credit was designed to do exactly that. 

 

Understanding the Refundable Investment Credit 

The RIC is not a tax rate reduction. It is a refundable tax credit tied to specific, approved investments in Singapore.
It qualifies as a Qualified Refundable Tax Credit (QRTC) under the OECD’s Pillar Two rules. This means that the credit retains its value and does not trigger additional taxation at the parent company level. 

How the RIC Works 

• Award structure: The RIC provides support of 10%, 30%, or 50% of qualifying expenditures incurred under an approved project during a qualifying period of up to ten years. The rate is set by the EDB based on project scale, strategic importance, and local economic impact. 

• Eligible activities: Projects involving advanced manufacturing, innovation and R&D, digital transformation, decarbonisation, and professional or global-trading services may qualify. 

• Offset mechanism: RICs are first used to offset Corporate Income Tax (CIT), Domestic Top-up Tax (DTT), and MNE Top-up Tax (MTT) in Singapore. Any unused credits are carried forward on a first-in, first-out (FIFO) basis until the approved payment date. 

• Refund backstop: If RICs remain unused, they are disbursed in cash according to the statutory schedule. Companies receive 20% within two years, 30% within three years, and 50% within four years from the date of application. 

This mechanism ensures that the RIC complies with Pillar Two and that the incentive’s value is preserved for the group even when minimum tax rules apply. 

 

Why the RIC Meets Pillar Two Requirements 

The OECD defines a Qualified Refundable Tax Credit (QRTC) as one that is refundable within a short, certain period and treated as income for accounting purposes rather than a reduction in tax expense. 

The RIC meets both conditions. The refund must occur within four years, satisfying the “short period” requirement. Because it is refundable in cash, accounting standards treat the credit as other income, not as a tax deduction. This ensures that the ETR for Singapore remains above 15% when calculated under the GloBE methodology. 

For French MNCs, this structure prevents the French parent from facing a Top-up Tax and ensures that the credit translates into a genuine financial benefit. 

 

Strategic Implications for French Groups 

1. Preserve Incentive Value Under BEPS 2.0

The RIC allows French companies to keep enjoying meaningful fiscal support for their Singapore operations while remaining compliant with global tax rules. It protects the value of investments in advanced manufacturing, digital technology, and green innovation. 

2. Match the Credit Form to Profitability

When a Singapore subsidiary generates steady taxable income, the RIC offsets its tax liabilities.
When profits are lower or cyclical, the company can rely on the refund schedule to receive the cash value of the credit within four years. Either method maintains a compliant ETR. 

3. 3. Strengthen Evidence and Reporting

Each RIC claim requires documentation proving qualifying expenditures and the fulfilment of agreed commitments.
The EDB issues a Letter of Confirmation outlining the amount awarded and the payment schedule. This record supports both local audits in Singapore and home-country reporting in France. 

 

Singapore’s Competitive Position After Enactment 

The official enactment of the RIC legislation in September 2025 marks a decisive step for Singapore. The country has repositioned itself from competing on headline tax rates to competing on certainty, liquidity, and compliance. 

For French multinationals, Singapore now offers a rare combination: a stable legal environment, a transparent tax administration, and a globally compliant investment framework. The RIC provides predictability for capital-intensive projects in high-value sectors, especially for companies expanding manufacturing, research, or sustainability-driven operations in Asia. 

The policy signal is clear. Singapore is committed to maintaining its role as a premier destination for international investment while fully aligning with the OECD’s global standards. 

 

Conclusion 

The Global Minimum Tax has redefined the logic of cross-border incentives. For French multinational corporations, Singapore’s Refundable Investment Credit (RIC) provides a compliant and financially efficient alternative to the old tax-holiday approach. 

By guaranteeing refundability within four years, applying to a broad range of strategic activities, and aligning with Qualified Refundable Tax Credit criteria under Pillar Two, the RIC ensures that companies can still achieve real after-tax value from investing in Singapore. 

Now that the RIC legislation is enacted and the framework is fully operational, French tax and finance leaders can plan their investments with confidence. Singapore’s incentives are no longer about lowering tax rates. They are about rewarding real, high-quality investment in ways that are consistent with the new global tax order. 

 

The Refundable Investment Credit (RIC) is a powerful tax incentive designed to encourage substantial, high-value economic activities in Singapore. However, unlike general tax deductions, eligibility for the RIC is specific and subject to rigorous review, primarily by the Economic Development Board (EDB) and the Inland Revenue Authority of Singapore (IRAS). 

This deep-dive guide from FI Group Singapore outlines the core criteria for eligibility, the industries typically prioritized, and the critical role of official legislation in your application. 

 

The Three Pillars of Refundable Investment Credit Eligibility

Eligibility for the Refundable Investment Credit rests on satisfying three main criteria: the applicant company, the specific investment project, and the economic benefits delivered.

Applicant Company Criteria (Who Can Apply?)

The company applying for the RIC must meet specific foundational requirements: 

• Tax Status: The applicant must be a company incorporated in Singapore and subject to Singapore income tax. 

• Business Intent: The company must be carrying on or intending to carry on a qualifying project or business activity in Singapore. 
• Financial Standing: Applicants must demonstrate a strong commitment to the project, usually through substantial financial projections and the ability to execute the proposed investment plan. 

The Qualifying Investment Project

The RIC is not an automatic credit; it is tied directly to an approved investment project. A project is generally deemed eligible if it: 

• Involves Substantial Investment: The EDB typically sets a minimum threshold for capital expenditure that must be met within a specified investment period (e.g., three to five years). 

• Generates Economic Value: The project must demonstrably contribute to Singapore’s economy, often measured by high-value job creation, skills development, and significant value-add (such as increasing intellectual property creation or adopting advanced manufacturing technologies). 

• Falls within Prioritized Sectors: The investment must align with Singapore’s strategic economic direction (as detailed in Section 2). 

• Legislative Compliance

All claims must adhere strictly to the Income Tax Act (ITA) and the specific terms and conditions set out in the relevant Gazette Notification that formalizes the RIC scheme. 

Key Takeaway: Eligibility is not just about the size of the investment; it’s about the strategic value and future-readiness of the project as assessed against government policy. 

 

Which Industries Are Prioritized for the RIC?

The EDB, in administering the RIC, focuses on investments that contribute to the long-term competitiveness and transformation of the Singapore economy. While the official list can be adjusted based on policy cycles, prioritized areas consistently fall under these high-growth, high-value categories: 

Prioritized Industry Cluster	Typical Investment Focus
Advanced Manufacturing & Engineering	Robotics, Additive Manufacturing (3D Printing), Smart Factory technologies, Aerospace MRO.
Digital Economy & Technology	Data Centres, Artificial Intelligence (AI) development, Cybersecurity solutions, Software R&D labs.
Biomedical Sciences	Pharmaceutical manufacturing, Medical device development, Clinical research facilities.
Green Economy & Sustainability	Carbon capture and storage (CCS) technologies, Renewable energy infrastructure, Sustainable materials innovation.
Innovation & R&D	Establishment of regional R&D headquarters, Intellectual Property (IP) creation and management, new product design.

The EDB’s Criterion: Projects are assessed on their ability to create high-quality jobs, introduce new and critical capabilities into Singapore, and deepen technological expertise, solidifying Singapore’s status as a global hub. 

 

The Critical Role of RIC Legislation and Approval

Understanding the legislation is paramount, as the RIC is a discretionary incentive. This means the grant of the credit is at the discretion of the EDB and IRAS, not an automatic right. Pre-Application Approval is Mandatory

You must apply for and obtain prior approval from the EDB before incurring the qualifying capital expenditure. 

Understanding “Refundable”

The term Refundable Investment Credit means that if the credit granted exceeds the company’s corporate tax liability for that year, the balance of the credit can be refunded in cash to the company. This is what makes the RIC exceptionally valuable, particularly for companies in expansion or investment phases where taxable income might be low in the short term. 

1. The EDB-IRAS Loop

• EDB (Economic Development Board): Assesses the strategic merit of your project, determines if it qualifies, and specifies the percentage of qualifying expenditure. 

• IRAS (Inland Revenue Authority of Singapore): Administers the actual tax claim process and handles the refund after the EDB has certified the qualifying expenditure incurred. 

Book Your Free RIC Eligibility Consultation Today 

 

Global Tax Compliance and the RIC: BEPS 2.0 Readiness

For Multinational Corporations (MNCs) affected by the OECD’s BEPS 2.0 Pillar Two rules the classification of tax incentives is a major strategic concern. 

The Refundable Investment Credit (RIC) is structured to be compliant with these new international tax rules: 

The Status of RIC as a QRTC 

The RIC qualifies as a Qualified Refundable Tax Credit (QRTC) under the Pillar Two framework. A tax credit is considered a QRTC if it is refundable in cash or can be used to settle other tax liabilities within a specific short period. 

• Benefit: Because the RIC meets this cash-refundable definition, it is treated as income for financial accounting purposes, not as a reduction in corporate tax. 
• Result: The RIC does not reduce the Effective Tax Rate (ETR) used for the Global Minimum Tax calculation. This means the benefit of the credit can be fully realized without triggering top-up taxes in other countries—preserving the full value of the investment incentive. 

 

FI Group Singapore’s Strategic Advantage in RIC Applications

While the regulatory framework is clear, securing the maximum possible Refundable Investment Credit (RIC) requires a specialized, process-driven approach. FI Group Singapore is uniquely positioned to maximize your claim by bridging the gap between your finance team and the EDB’s strategic objectives. 

Our service specifically addresses the three most common failure points for RIC applicants: 

1. Strategic Alignment & Proposal Drafting: We translate your investment plan into the EDB’s strategic language, ensuring your proposal clearly demonstrates high-value economic contribution, the most critical factor for discretionary approval. 

1. Qualifying Expenditure Audit: We conduct a forensic analysis of your capital expenditure projects to identify all eligible costs, often uncovering expenses missed by internal finance teams. Our expertise ensures full compliance while maximizing the claimable base. 

1. End-to-End EDB-IRAS Management: We manage the complex communication and submission process with both the EDB (for approval) and IRAS (for claiming the credit), ensuring seamless transition between the pre-approval phase and the final tax filing. 

Our proven methodology is governed by a rigorous multi-stage approach, ensuring no detail is overlooked, from initial assessment to final disbursement. This proprietary process, detailed below, is what drives maximum claim success for our clients: 

 

Ready to Navigate RIC Eligibility? 

The Refundable Investment Credit offers one of the most powerful cash incentives for strategic investment in Singapore. However, the complexity of the eligibility criteria, the required detailed projections, and the mandatory pre-approval process mean that expert guidance from FI Group Singapore is necessary for optimal success. 

Don’t risk submitting a suboptimal application or missing out on key qualifying expenditures. 

Contact FI Group Singapore today for an Expert RIC Eligibility Consultation. 

A Guide to Government Bodies and Their Grant Schemes

Singapore’s reputation as a global innovation hub is backed by a robust network of government agencies offering targeted grants and tax incentives. These programmes are designed to help businesses, from startups to large enterprises, accelerate R&D, adopt new technologies, and build future-ready capabilities. 

In this guide, we explore the key government bodies present in Singapore and the innovation schemes they offer. Whether you’re looking to co-fund a digital transformation project or claim tax deductions for R&D, there’s a programme tailored to your needs. 

Check out our Types of Grants In Singapore | 2025 Guide for CFOs and Founders.

Enterprise Singapore (EnterpriseSG) 

EnterpriseSG is the government agency championing enterprise development. It supports startups and SMEs in building capabilities, innovating, and expanding internationally through targeted grants and programmes.  

Key Programmes: 

Grant	Purpose	Funding
EDG	Business transformation	Up to 70%
CTC Grant	Worker-centric transformation	Up to 70%
T-Up	R&D capability via A*STAR secondment	Up to 70%
Startup SG Tech	Early-stage tech development	Up to S$800,000
Resource Efficiency Grant for Emissions (REG(E))	Emissions reduction through energy-efficient upgrades	Up to 70% for SMEs, capped at S$30,000 (Base Tier) or S$350,000 (Advanced Tier)

 

Economic Development Board (EDB) 

EDB is Singapore’s lead agency for attracting investments and fostering innovation in high-value sectors. It supports companies undertaking strategic R&D and expansion projects that contribute to national economic priorities. 

Key Programmes: 

Grant	Purpose	Funding
Research and Innovation Scheme for Companies (RISC)	Supports companies in expanding R&D teams and executing innovation projects that develop new or improved products or processes	60% support for local manpower; 30% for foreign manpower and equipment
Refundable Investment Credit (RIC)	Encourages significant new or expanded investments in Singapore across manufacturing, services, and growth sectors	10%, 30%, or 50% refundable tax credit on qualifying expenditures

 

 

Monetary Authority of Singapore (MAS) 

MAS is Singapore’s central bank and financial regulator. It drives innovation in the financial sector through the FSTI framework, supporting fintech, ESG, AI, and quantum technologies. 

Key Programmes: 

Grant	Focus	Funding
FSTI Quantum Track	Quantum tech pilots	Up to 50%
FSTI Centre of Excellence	Financial innovation hubs	Up to S$250,000
FSTI Innovation Acceleration	Nascent tech	Up to S$400,000
ESG FinTech Grant	Sustainable finance	Up to S$500,000
AIDA Grant	AI & analytics	Up to S$500,000

 

Infocomm Media Development Authority (IMDA) 

IMDA leads Singapore’s digital transformation agenda. It empowers businesses to adopt emerging technologies and build internal digital capabilities through strategic funding programmes. 

Key Programmes: 

Grant	Purpose	Funding
Digital Leaders Programme (DLP)	Supports companies in building internal digital teams and implementing impactful digital transformation projects	Up to S$200,000 over 2 years for hiring up to 4 dedicated digital roles

 

 

Maritime and Port Authority of Singapore (MPA) 

MPA promotes innovation in the maritime sector, supporting companies in developing advanced technologies and intellectual property that enhance Singapore’s position as a global maritime hub. 

Key Programme: 

Grant	Purpose	Funding
MINT – Research & Product Development (MINT-RPD)	Supports maritime companies in developing technologies and IP through R&D, test-bedding, and commercialisation	Co-funding of up to 50% of qualifying project costs

 

Building and Construction Authority (BCA) 

The Building and Construction Authority (BCA) drives transformation in Singapore’s built environment sector. It supports firms in adopting advanced technologies, improving enterprise capabilities, and upskilling manpower to meet evolving industry standards. 

Key Programme: 

Grant	Purpose	Funding
Built Environment Technology and Capability (BETC) Grant	Supports holistic transformation in construction through tech adoption, enterprise development, and manpower upskilling	Up to 70% (SMEs), up to 50% (non-SMEs)

 

Inland Revenue Authority of Singapore (IRAS) 

IRAS offers tax-based innovation support via the Enterprise Innovation Scheme (EIS). 

• The Enterprise Innovation Scheme (EIS) offers enhanced tax deductions of up to 400% or a cash payout of up to S$20,000 per year for qualifying innovation activities. It’s designed to support companies investing in innovation, especially those in early growth stages or not yet profitable. 

 

How FI Group Supports Your Innovation Funding Journey 

At FI Group Singapore, we go beyond identifying funding opportunities—we guide you through every stage of the grant journey. From analysing your innovation roadmap to matching the right grants, managing applications, and ensuring post-approval compliance, our structured process is designed to maximise your success. 

Whether you’re applying for EnterpriseSG grants or claiming EIS tax benefits, our expert team ensures your innovation efforts are fully supported. 

Frequently Asked Questions 

What types of businesses can apply for Singapore innovation grants? 

SMEs, startups, and large enterprises across sectors can apply, depending on the grant’s scope and eligibility criteria. 

Can I combine grants with tax incentives like the Enterprise Innovation Scheme? 

Yes. Many companies use grants for upfront funding and EIS for tax optimisation or to receive a cash payout of up to S$100,000 annually. 

How do I know which grant suits my project? 

FI Group offers tailored advisory services to help match your innovation goals with the most suitable funding scheme, whether it’s a grant or a tax incentive. 

Singapore has once again proven its global innovation prowess, ranking 5th in the 2025 Global Innovation Index (GII) published by the World Intellectual Property Organization (WIPO). This achievement is a signal to businesses, researchers, and policymakers that Singapore is fertile ground for innovation-led growth, supported by strong public funding, world-class infrastructure, and a future-ready workforce. 

 

Key Highlights from the GII 2025 

Category	Singapore’s Rank	Notable Strengths
Overall GII Rank	5th	Top 5 globally for 3rd year
Innovation Inputs	1st	15th consecutive year
Innovation Outputs	9th	Highest in over a decade
Top-Ranked Indicators	10 (1st place)	Government effectiveness, FDI inflows, unicorn valuations, high-tech manufacturing

Why Singapore Continues to Lead in Innovation Inputs 

Singapore’s top global ranking in innovation inputs, which include institutions, human capital, infrastructure, and business sophistication, reflects its long-term commitment to building a resilient and future-ready economy. 

• Institutions: Ranked 1st globally, thanks to policy stability, regulatory quality, and government effectiveness. 

• Human Capital & Research: Ranked 2nd, driven by world-class universities and public-private R&D collaboration. 

• Business Sophistication: Ranked 3rd, with strong knowledge absorption and innovation linkages. 

A Leap in Innovation Outputs: From Ideas to Impact 

While Singapore has traditionally excelled in inputs, 2025 marks a turning point in outputs, jumping two spots to 9th globally. This reflects the country’s growing ability to translate innovation investments into tangible economic value. 

Key drivers of this output surge include: 

• High-tech manufacturing and export capabilities 

• Cultural and creative services exports 

• Unicorn valuations and startup ecosystem maturity 

• Intangible asset intensity and brand value creation 

Unlocking Innovation Through Public Funding in Singapore 

Singapore’s rise in the Global Innovation Index is powered not only by private sector dynamism but also by strategic public funding. From R&D tax incentives to sector-specific grants, the government plays a pivotal role in enabling innovation across industries. 

At FI Group Singapore, we help businesses navigate and access these funding opportunities to accelerate their innovation journey. Whether you’re a startup, SME, or multinational, our team can guide you through: 

• R&D Tax deductions under the Enterprise Innovation Scheme (EIS) 

• Innovation Grants 

Download our free guide:

“Singapore R&D Handbook”
Discover key grants, incentives, and strategic tips for international companies to unlock innovation funding in Singapore.
👉 Download the guide now

Looking Ahead: Innovation as a National Imperative 

Singapore’s performance in the GII 2025 is a testament to its whole-of-nation approach to innovation. As the country advances its IP Strategy 2030, business that 

 align with national priorities, such as sustainability, digitalization, and advanced manufacturing, will be best positioned to lead. 

At FI Group Singapore, we’re here to help you navigate this evolving landscape and turn innovation into impact. 

 

📞 Ready to innovate with confidence? 

Contact FI Group Singapore today to explore how we can support your innovation journey. 

Introduction to the Enterprise Innovation Scheme (EIS)

 
The Enterprise Innovation Scheme (EIS) is a key initiative introduced in Singapore’s Budget 2023 to boost innovation and encourage companies to invest in Research and Development (R&D). Running from Year of Assessment (YA) 2024 to YA 2028, it offers businesses the choice between enhanced tax deductions or a direct cash payout for qualifying expenditures.

For many startups and SMEs, the EIS Cash Payout for R&D in Singapore provides immediate cash flow relief, with businesses able to claim up to S$20,000 annually. This makes it easier to sustain innovation while awaiting profitability.

However, the scheme comes with strict definitions, conditions, and compliance requirements. Many companies therefore rely on experts like FI Group Singapore, specialists in R&D tax incentives, to maximize benefits while staying compliant.

Scope of Activities Covered Under the EIS

The EIS goes beyond R&D, supporting five key innovation categories:

• Qualifying R&D activities performed in Singapore.
• Registration of Intellectual Property (IP) such as patents and trademarks.
• Acquisition and licensing of IP rights.
• Employee training under government-approved courses.
• Innovation projects with polytechnics, ITE, or approved innovation partners.

📌 FI Group’s Role: FI Group helps businesses identify which expenditures across these categories qualify, ensuring companies can confidently claim benefits.
 

Understanding Qualifying R&D Under Section 14D ITA

Definition and Criteria for Qualifying R&D Projects

Not every project labeled as R&D qualifies. Under Section 14D of the Income Tax Act (ITA), projects must meet three conditions:

1. Objective – Develop new knowledge, products, or processes.
2. Novelty or Technical Risk – Involves uncertainty that isn’t easily solved by existing knowledge.
3. Systematic, Investigative, and Experimental (SIE) Study – Requires structured testing and experimentation.

Excluded Activities That Do Not Qualify

Excluded activities include:

• Market surveys and consumer testing.
• Routine quality control.
• Cosmetic modifications.
• Social sciences or humanities research.

Types of Eligible R&D Expenditures

Businesses can claim deductions on:

• Staff costs directly engaged in R&D (excluding directors’ fees).
• Consumables used in testing or prototyping.
• Outsourced R&D costs, where 60% of contract value typically qualifies.

📌 FI Group Advantage: Many firms overlook eligible costs. FI Group ensures full cost recovery by reviewing technical and financial records to uncover all claimable expenses.
 

EIS Tax Benefits: Deductions vs. Cash Payout

• 400% Enhanced Tax Deductions: Businesses enjoy 400% tax deductions on the first S$400,000 of R&D costs per YA, lowering taxable income significantly.
• EIS Cash Payout Option: Companies can convert up to S$100,000 in R&D expenses into a 20% non-taxable cash payout, capped at S$20,000 per YA.

When to Choose Each Option

• Tax deductions → better for profitable companies.
• Cash payout → better for loss-making businesses or startups needing cash flow.

📌 FI Group Insight: FI Group runs financial modeling to advise whether deductions or payouts maximize a company’s overall savings.
 

Eligibility Criteria for EIS Cash Payout

To qualify for the EIS cash payout, businesses must:

• Be actively trading in Singapore.
• Employ at least 3 full-time local staff earning at least S$1,400/month.
• Incur at least S$400 in qualifying expenditure.

Companies in liquidation or receivership are not eligible.

📌 FI Group Expertise: FI Group ensures businesses meet IRAS’s eligibility conditions to avoid rejection.
 

Application Process for the EIS Cash Payout

1. Tax Filing: Submit Form C/C-S with R&D claims.
2. IRAS myTax Portal: Apply for the cash payout after tax filing.
3. Attach Documentation: Upload R&D claim forms and project details.
4. Processing: IRAS disburses approved payouts within ~3 months.

📌 Why Work with FI Group? FI Group’s consultants prepare technical reports and claim files that stand up to IRAS audits, reducing the risk of disputes.
 

Compliance and Record-Keeping Requirements

Businesses must:

• Keep records for 7 years, including payrolls, invoices, and test data.
• Demonstrate how projects meet R&D criteria.
• Avoid double claiming (cannot claim deduction and payout on same expenditure).

📌 FI Group’s Compliance Advantage: FI Group builds a documentation framework for clients, ensuring audit-readiness and full compliance.
 

Updates and Changes Since Budget 2023

• EIS launched in YA 2024 with 400% deductions.
• Cash payout option reinstated at 20% conversion rate.
• R&D concession (non-trade related R&D) extended to YA 2028.
• New Innovation Project category added for polytechnic and ITE collaborations.

📌 FI Group Advisory Role: FI Group keeps businesses updated on IRAS policy changes, ensuring continuous eligibility.
 

How FI Group Can Help You Maximize EIS Benefits

The EIS is highly beneficial but complex. Missteps can result in rejected claims or lost savings. FI Group Singapore helps businesses:

• Identify qualifying R&D projects under Section 14D ITA.
• Prepare audit-ready documentation.
• Optimize between cash payouts and deductions.
• Combine EIS with other government grants for maximum benefit.

With over 18,000 clients worldwide, FI Group is a trusted partner in maximizing innovation funding.

👉 Learn more: FI Group R&D Tax Incentives

FAQs on Enterprise Innovation Scheme (EIS) Cash Payout

 

Question	Answer
Who can apply for the EIS Cash Payout?	Any business with active operations in Singapore, at least 3 local employees, and qualifying expenditures.
What is the maximum cash payout per year?	S$20,000 per YA, based on converting S$100,000 in qualifying expenses.
Can a company claim both deductions and cash payout?	No. Businesses must choose one option per expenditure.
How long does it take to receive the payout?	Typically 3 months after filing via IRAS myTax Portal.
What documentation is required for R&D claims?	Invoices, payroll records, experiment logs, and the IRAS R&D Claim Form.
Does outsourced R&D qualify under the EIS?	Yes, usually 60% of outsourcing costs qualify unless higher direct R&D costs are proven.

 

Conclusion

The Enterprise Innovation Scheme (EIS) Cash Payout for R&D in Singapore is a powerful funding tool for innovation-driven businesses. By providing 400% tax deductions and a cash payout option, it supports both established companies and early-stage startups.

Yet, the rules are complex, and compliance is critical. Partnering with FI Group Singapore ensures that businesses not only remain compliant but also maximize every dollar of funding available.
 

👉 Take the next step with FI Group’s R&D Tax Incentive Services and unlock the full potential of the EIS.