Amount of Tax Deductions and/ or Allowances Granted From YA 2024 to YA 2028 · 100% tax deduction on R&D expenditure plus · Additional 300% tax deduction on first ...
Amount of Tax Deductions and/ or Allowances Granted From YA 2024 to YA 2028 Amount of Tax Deductions and/ or Allowances Granted Before YA 2024 To qualify for the tax deduction, the business must be the beneficiary of the qualifying innovation project. To encourage businesses to kickstart their innovation journey by tapping on existing technical and innovation capabilities within the polytechnics, the ITE or other qualified partners (collectively known as “partner institutions5”), a 400% tax deduction will be granted on up to $50,000 of qualifying innovation expenditure incurred by businesses for each YA on qualifying innovation projects carried out with the partner institutions. Enhance the tax deduction to 400% (i.e., 100% tax deduction and additional 300% tax deduction) for up to $400,000 of qualifying IP registration costs incurred by a person for each YA from YA 2024 to YA 2028. Where the capital expenditure incurred on a qualifying IPR is in excess of the cap of $100,000, the excess is forfeited upon conversion and will not be available for deduction as WDA against the income of the company or partnership concerned. For acquisition of IPRs, the option to convert into a cash payout is on a per IPR basis, subject to a cap of $100,000 of qualifying expenditure across all the qualifying activities for each YA. Together with the 100% base deduction allowed under Section 14 or Section 14C (as the case may be), a total of 400% tax deduction is available on the first $400,000 of qualifying IPR licensing expenditure. The 100% tax deduction will continue to be allowable for qualifying IP registration costs in excess of $400,000 incurred by the person for each YA from YA 2024 to YA 2028. The additional tax deduction of 150% on qualifying R&D expenditure under Section 14D(1) is available up to YA 2025. A further 150% tax deduction is granted on the first $400,000 of qualifying R&D expenditure incurred by a person on qualifying R&D undertaken in Singapore in a basis period, in addition to the 100% base deduction under Section 14C and the current additional 150% tax deduction under Section 14D(1). The relaxation of this “related to trade or business” condition is effective for YA 2009 to YA 2025.