Secure Your Trademark in Singapore and Gain a 200% Tax Deduction Boost? – Know How

Innovation stands as the cornerstone of success and growth for businesses across the globe. In Singapore, a bustling business hub renowned for its pro-business environment and forward-thinking approach, innovation takes center stage. This blog delves into the intricacies of the newly introduced Enterprise Innovation Scheme (EIS) and its potential to bolster companies’ innovation endeavors.


Understanding the Enterprise Innovation Scheme (EIS):


Unveiled during the announcement of Budget 2023, the Enterprise Innovation Scheme (EIS) is a strategic initiative introduced by Deputy Prime Minister and Minister for Finance Lawrence Wong. This scheme is crafted to incentivize companies to actively engage in research and innovation (R&D) and innovation and capability development activities.


Qualifying Activities under the EIS:


The EIS applies to a spectrum of qualifying activities, including Intellectual Property (IP) registration, acquiring and licensing IP rights, eligible R&D activities in Singapore, training initiatives, and innovation-related projects in collaboration with local institutions like polytechnics and Institutes of Technical Education.


Qualifying Period:


Effective from the Year of Assessment (YA) 2024 to YA 2028, the EIS spans a five-year period, providing companies with ample time to leverage its benefits.


Key Benefits of the EIS:


The EIS aims to alleviate innovation-related costs for small and developing companies, offering two key advantages:

  1. Tax Deductions/Allowances:

    • Enhanced deductions on up to S$400,000 of eligible spending per qualifying activity.
    • Deductions on up to S$50,000 of qualifying spending per activity.
    • The total deductions or allowances amount to an effective 400% per S$ of eligible expenditure, per qualifying activity.

  2. Cash Payout:

    • Qualifying companies can opt to convert up to S$100,000 of total qualifying spend per YA into cash at a 20% conversion rate.
    • The cash payout is capped at S$20,000 per YA, with a minimum spend requirement of S$400.

With the Enterprise Innovation Scheme, Singapore demonstrates its commitment to fostering a culture of innovation within its business landscape. This enhanced tax relief scheme serves as a catalyst, encouraging and supporting companies in their pursuit of groundbreaking innovations. Companies now have the opportunity to leverage a 400% tax deduction or allowance, marking a substantial leap from the existing range of 100% to 250%. The EIS not only transforms the financial landscape for innovative enterprises but also positions Singapore as a global hub for forward-thinking businesses.

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