Singapore
Singapore offers a flat 150% superdeduction for all companies, so long as R&D is undertaken in
Singapore.
Substantial changes to the scheme effective from 2018, most notably a significant increase in generosity (with superdeduction increasing from 50% to 150%
| Singapore all companies
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|---|---|---|
| 25.5% | ||
| Benefit Overview
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150% superdeduction for eligible costs, though the specific costs that can be included are quite constrained. At the main rate tax rate of 17% (exemptions for v low profits) this gives a benefit of 25.5% | |
| Eligible Claim Period
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3 Year of assessments, including current YA (hence 2 historic yrs). | |
| Historical Background
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Various discretionary incentives have existed for decades, but a statutory scheme was introduced as a superdeduction in 2009. There have been various adjustments since then. | Substantial changes to the scheme effective from 2018, most notably a significant increase in generosity (with superdeduction increasing from 50% to 150%). |
| Ease of Application
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Company makes claim via Form C-S; this is fairly self-explanatory but requires an overview, documentation, and separate quantification for each project included in the claims.
A company may directly request review by the ‘Technical Panel’ of scientific experts; this is also automatic after two rounds of correspondence with IRAS. |
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| Regulating Body Policies
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Details of each project, including a summary of the R&D undertaken and a quantification of each cost, must be provided in the Form C-S.
Each claim is reviewed by IRAS (not clear the level of scrutiny) IRAS is open to less stringent documentation for smaller businesses and claims. IRAS has recently introduced the “R&D Assurance Framework” as a mechanism to get certainty for 3 years at once; subject to a minimum number of projects and expenditure. |
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| Eligible Costs |
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| Issues to Consider | R&D must take place in Singapore to be eligible for superdeductions. Overseas activity is deductible at 100% (without superdeduction) but only if it is related to the trade.
Any grants received (and there are a lot available in Singapore) must be deducted from QE. No payable credits, so lossmaking companies do not gain a cash benefit. |
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