For the years of assessment 2024 to 2028, businesses that engage in the following qualifying activities will be allowed a 400% tax deduction or allowances for qualifying expenditure:

• R&D projects conducted in Singapore (capped at SGD 400,000 of qualifying expenditure).

• IP registration (capped at SGD 400,000 of qualifying expenditure).

• Acquisition or licensing of IP rights (capped at SGD 400,000 of qualifying expenditure and available only to businesses that generated less than SGD 500 million in revenue in the relevant year of assessment).

• Employee training (capped at SGD 400,000 of qualifying expenditure).

• Innovation projects carried out with Polytechnics, the Institute of Technical Education, or other qualified partners (capped at SGD 50,000 of qualifying expenditure).

Qualifying businesses may opt to convert the above tax deductions to a cash payout. They would receive, in lieu of the deduction, a non-taxable cash payout of 20% of total qualifying expenditure of up to SGD 100,000 across all qualifying activities (i.e. maximum cash payout of SGD 20,000 per year).