subpage banner

Press Releases

Public Consultation On Draft R&D Circular

21 Aug 2008

The Ministry of Finance is conducting a public consultation exercise on draft guidelines for what constitutes Research & Development (R&D) for income tax purpose. This exercise will take place from 21 August 2008 to 10 September 2008.

Draft R&D Guidance

2. In Budget 2008, four income tax changes were introduced to encourage pervasive R&D to be done in Singapore. Specifically, the R&D-related income tax changes are:

(a) an increase from 100% to 150% in tax deduction for R&D done in Singapore;

(b) tax deduction for R&D can be claimed even if the R&D is not relevant to the company's existing trade or business;

(c) R&D Incentive for Start-up Enterprises (RISE); and

(d) R&D Tax Allowance scheme.

The details of the schemes are due to be released by end-September 2008. To provide greater clarity on what constitutes R&D for income tax purpose, R&D guidance will be released together with the other details of the various R&D schemes by end of September 2008.

Consultation Details

3. The consultation guidelines and draft R&D circular can be found in the government's central consultation portal as well as the Ministry of Finance's website at Respondents may send their comments to the Ministry of Finance directly via the website, email, fax or post.