EDB has a comprehensive list of incentive and development schemes to assist you in expanding your business.
The schemes range from assistance in manpower development, technological/equipment upgrading, to R&D, intellectual property and industry development.
The schemes are available in the following categories:
| Approved Foreign Loan Incentive (AFL) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
| Investors | Tax incentive: Grants full or partial exemption on withholding tax on interest payments to non-residents. | Interest payments must be made on loans taken to purchase productive equipment only. Minimum loan amount is S$200,000. | Overseas recipient of payments will pay lower taxes in Singapore. | Equipment
Investment |
|
| Investment Allowance (IA) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
| Investors | Tax incentive: IA is a capital allowance to offset the costs of qualifying equipment within a set period. | Equipment must introduce new technology to the industry or contribute to its efficiency. | Reduces tax liability. | Equipment
Investment
Technology |
|
| Development Expansion Incentive (DEI) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Tax incentive: Provides preferential corporate tax rates on all qualifying profits above a pre-determined base within a set period. | Project must generate significant economic benefits for Singapore. | Reduces tax liability. Assists the company to move towards higher value-added business activities. | Business
Development |
|
| Script 2 Screen (S2S) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Grant: Provides partial grants to support production budgets or commissioning fees. Supports the development of creative and technical talents in content production. | Open to companies which are registered and managed in Singapore.
Must have completed at least one screen production project which has been distributed internationally.
At least 30 per cent of key company positions must be held by Singapore citizens or PRs. | Meets the cost
of television productions. | Business Development |
|
Innovation, R&D and Intellectual Property
- Approved Royalties Incentive (ARI)
- Further Deduction for R&D Expenses (S14E)
- Innovation Development Scheme (IDS)
- Research Incentive Scheme for Companies (RISC)
- Technology for Enterprise Capability Upgrading (T-UP)
- Writing Down Allowance for Cost Sharing Agreement (S19C)
| Approved Royalties Incentive (ARI) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Tax incentive: Provides full or partial exemption on withholding tax for royalty payments or technical assistance fees payable to non-residents. Includes royalties, fees and contributions to R&D costs paid for the transfer of technology and knowledge to Singapore. | Technology or know-how must be more advanced than the prevailing industry average. | Non-resident recipient of payments will be paying lower taxes in Singapore on its royalty income. This could assist the payee company in reducing its overall payment costs. Assists the company in transferring technology and knowhow to Singapore. | Technology
R&D |
|
| Further Deduction for R&D Expenses (S14E) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Tax incentive: Allows the company to deduct a second round of qualifying expenses from its income in addition to the automatic first deduction allowed.
S14E covers both R&D conducted in-house, and by a third party organisation. | R&D must be conducted in Singapore. | Reduces tax liability. | R&D |
|
| Innovation Development Scheme (IDS) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Grant: Provides co-funding to support innovation in products, processes and applications. Eligible project costs include expenditure on manpower, equipment, intellectual property and professional services. | Open to companies registered in Singapore.
Project must lead to the build-up of innovation capabilities. | Co-funds assistance further powers innovation | Innovation
R&D |
|
| Research Incentive Scheme for Companies (RISC) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Grant: Provides partial grants to offset costs resulting from R&D projects.
These include manpower training, equipment investment, intellectual property management,
and professional services. | Must develop or bring in new R&D capabilities. Projects should result in the increased hiring and training of research scientists and engineers. | Meets the costs of R&D activities. | Technology development
R&D
Manpower development |
|
| Technology for Enterprise Capability Upgrading (T-UP) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Grant: Provides partial funding for the secondment of research scientists and engineers from research institutes to local enterprises for two years. | Open to Singapore companies with minimal 30 per cent of local equity. | Helps local enterprises build in-house R&D capabilities by partially supporting salaries of seconded researchers and engineers.
Encourages technology transfer. | Technology development
R&D
Manpower development |
|
| Writing Down Allowance for Cost Sharing Agreement (S19C) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Tax incentive: Allows companies to write down cost-sharing payments for R&D activities, which are otherwise not deductible, over one to five years. | Cost-sharing agreement must be bona fide. R&D activities must have economic benefits. | Reduces tax liability. | R&D |
|
For other research and development schemes, please click here to download the leaflet.
Headquarters Management
| Regional / International Headquarters Award (RHQ / IHQ) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Encourages companies to use Singapore as a base. Customised package of tax incentives or grants under the Regional Headquarters (RHQ) Award or International Headquarters (IHQ) Award helps to meet the needs of the investors. | Refer to related link on Headquarters Services for eligibility criteria. | Customised support for qualifying projects. | RHQ/IHQ activities |
|
Click here to download HQ Leaflet
- Finance and Treasury Centres ("FTC") Award
| Finance and Treasury Centres ("FTC") Award |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Encourages companies to use Singapore as a base for conducting treasury management activities for related companies in the region. | Refer to related link on Tax Incentive for Finance and Treasury Centres for eligibility criteria. | Support for qualifying projects. | Qualifying FTC activities and services |
|
Click here to download the Finance and Treasury Centre (FTC) Award Brochure
Industry Development
- Development Expansion Incentive (DEI)
- Initiatives in New Technology (INTECH)
- Local Industry Upgrading Programme (LIUP)
- Locally-based Enterprise Advancement Programme (LEAP)
- Pioneer Incentive (PC-M or PC-S)
- Venture Capital Fund Incentive (S13H)
| Development Expansion Incentive (DEI) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Tax incentive: Provides preferential corporate tax rates on all qualifying profits above a pre-determined base, for a set period. | Project must generate significant economic benefits for Singapore. | Reduces tax liability. Assists the company to move towards higher value-added business activities. | Industry development
Business development |
|
Initiatives in New Technology (INTECH) |
| Suitable For | What the scheme
does | Eligibility | Benefits | Type of assistance |
Investors | Grant: Awards grants
to offset the costs of developing/
introducing new capabilities. These include skills development in the application of new technologies, industrial R&D and professional knowledge. | Open to all Singapore-based companies. Activities must lead to the development or introduction of new capabilities for companies or industry. | Helps meet the costs related to the introduction or development of new capabilities. | Business development |
|
| Local Industry Upgrading Programme (LIUP) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
| Startups | Grant: Provides support for local suppliers to upgrade through collaborations with MNCs. | Contact EDB for eligibility criteria. | Helps meet the costs of technology transfer and upgrading for local suppliers.
Fosters closer ties with industry contacts. | Industry upgrading and colloboration Manpower development |
|
| Locally-based Enterprise Advancement Programme (LEAP) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Grant: Provides support to multiplier companies to assist in the development of Singapore-based companies. | Contact EDB for eligibility criteria | Multipliers receive grant support to help meet related manpower and operating costs | Industry upgrading and colloboration
Manpower development |
|
| Pioneer Incentive (PC-M or PC-S) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Tax incentive: Tax exemption on qualifying profits for up to 15 years. Encourages the introduction and growth of new industry technologies, knowledge or skills. | Projects must result in the creation of new industries, or strategically expand existing, industries in Singapore | Reduces tax liability | Industry development and upgrading |
|
| Venture Capital Fund Incentive (S13H) |
| Suitable For | What the scheme does | Eligibility | Benefits | Type of assistance |
Investors | Tax incentive: Allows approved venture capital (VC) fund partial or full corporate tax exemption on income from divestment of shares, foreign dividends and foreign interest income.
Encourages venture capital activity in Singapore. | Approved VC fund should contribute to the financing of industry development. | Reduces tax liability | Industry development |
|
Local Government Incentives The government has established a number of incentive programmes to help companies improve efficiency, strengthen capabilities and explore new opportunities in their business. Some programmes cater to the needs of startups and local enterprises, while others are designed for global companies with large-scale needs such as the set up of regional headquarters in Singapore.
For a list of government incentives for businesses, please visit the business.gov.sg portal.
For statutes relating to the tax incentives in the categories below, please refer to the Economic Expansion Incentives Act and the relevant provisions in the Income Tax Act, at the following link: http://statutes.agc.gov.sg/
