Lowtax Network

Back To Top

Singapore Issues Modified Research e-Tax Guide

by Mary Swire, Lowtax.net, Hong Kong
27 August, 2014

Following the changes announced in February's 2014 Budget, the Inland Revenue Authority of Singapore (IRAS) has published an updated e-Tax Guide on Singapore's research and development (R&D) tax deductions.

IRAS' e-Tax Guide also clarifies the existing definition of R&D and its qualifying criteria, and helps taxpayers to self-assess if their R&D projects are qualifying activities for tax purposes.

The proposed changes introduced in 2014 include an extension of both the additional 50 percent tax deduction for R&D projects for ten years until the 2025 year of assessment (YA), and the tax deduction for Economic Development Board-approved R&D projects until YA2020; while the Writing Down Allowance on a straight-line basis for the acquisition of qualifying intellectual property rights would also be available for a further five years until YA2020.

IRAS emphasized that the R&D measures are targeted at encouraging businesses to build up research capabilities in Singapore. A taxpayer need not apply to any government agency, but may self-assess that his R&D activities are qualifying R&D activities for tax purpose and, if so, make the relevant claims in the annual tax return.

It was also noted that R&D claims for qualifying activities can be made under the Productivity and Innovation Credit (PIC) Scheme. The PIC scheme has also been extended for three years until YA2018, and a PIC+ scheme introduced, under which qualifying small and medium-sized enterprises can claim a 400 percent tax deduction for up to SGD600,000 (USD481,000) of expenditure per qualifying activity per YA.

See all of today's news


News Archive

Event Listings

Listings for the leading worldwide conferences and events in accounting, investment, banking and finance, transfer pricing, corporate taxation and more...
See Event Listings »