IRAS R&D Tax Deduction 2026 Calculator
Singapore offers 150% (in-house) or 100% (outsourced) tax deduction on qualifying R&D. Calculate your enhanced deduction (source: iras.gov.sg).
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| In-house deduction (150%) | — |
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Singapore's Enhanced R&D Tax Deduction
Singapore offers one of Asia's most generous R&D tax incentives. Section 14C/14D ITA grants a 150% deduction on in-house R&D (50% enhancement over standard) and 100% deduction on outsourced R&D to approved research institutions. Combined with the headline 17% corporate tax rate, this means every S$1 spent on qualifying in-house R&D delivers S$0.255 of tax savings vs S$0.17 on regular expenses (source: iras.gov.sg).
What Qualifies as R&D in Singapore?
IRAS adopts the OECD Frascati Manual definition: systematic, investigative, and experimental work to acquire new knowledge or develop new or improved products/processes. Routine software development, market research, quality control, and reverse engineering do NOT qualify. Qualifying spend: R&D staff salaries (75–100% of work time), consumables, equipment depreciation, and approved overseas R&D up to S$400,000.
Claiming the Deduction
Submit Form R&D-1 alongside your corporate tax return Form C-S/C. Companies claiming over S$150,000 of enhanced deduction must also file the R&D Claim Summary. Keep contemporaneous records: project plans, technical reports, staff timesheets, and equipment usage logs. IRAS audits ~10% of R&D claims annually.
Compatibility with Other Schemes
The R&D deduction stacks with the IP Development Incentive (IDI) for monetized intellectual property and the S$1M cash payout option (Productivity & Innovation Credit successor — capped). However, you cannot double-count expenses claimed under EDB Pioneer or Development & Expansion grants. Last updated: May 2026.
Source: iras.gov.sg/businesses/companies/working-out-corporate-income-taxes/specific-deductions/research-development-tax-measures