Tax Deduction for R&D: Who Qualifies and What You Get
Learn how companies in Singapore can claim significant tax deductions on qualifying research and development expenses.
This scheme allows companies to claim a higher tax deduction for expenses related to qualifying research and development activities conducted within Singapore.
Who it's for
This is designed for companies that perform qualifying research and development activities within Singapore.
What you get
You can claim a tax deduction of up to 250% on expenses that qualify as R&D expenditure. This helps lower your company's taxable income.
What it costs you
To claim this, you must maintain rigorous documentation. This includes keeping detailed records of your R&D activities and maintaining precise time logs for your technical staff.
The catch to know
Not all innovation counts. Routine software updates or standard market research activities do not qualify for this specific tax deduction.
How to apply
- Ensure your activities meet the specific technical requirements for R&D.
- Implement a system to track technical staff hours and related expenses.
- Prepare all necessary supporting documentation for your tax filing.
- Submit your claim through the official tax filing process.