Ref: EIS · IRAS · reviewed 05 Jul 2026
Enterprise Innovation Scheme (EIS)
A tax scheme that gives your business 400% tax deductions or allowances on the first S$400,000 you spend each year on innovation activities like R&D, IP registration, and staff training. If you are not yet profitable, you can convert up to S$100,000 of that qualifying spend into a non-taxable cash payout of up to S$20,000 per year instead.
S$20,000 cash payout per YA (if converting), or enhanced deductions on up to S$400,000 per qualifying activity per YA; available YA 2024 to YA 2028
Who qualifies
- ✓Sole proprietorships, partnerships, and companies carrying on active business in Singapore
- ✓Businesses spending on R&D, IP, training, or innovation projects
- ✓For the cash payout: businesses with at least 3 full-time local employees for 6+ months in the basis period
- ✓Loss-making or low-profit businesses that cannot use tax deductions benefit most from the cash option
What it pays for
- Qualifying R&D undertaken in Singapore
- Registration of IP (patents, trademarks, designs) and acquisition/licensing of IP rights
- Training of employees on qualifying courses
- Innovation projects done with polytechnics, ITE, or other qualified partners
How to apply
Claimed with your annual tax filing; cash payout applications close 18 Apr (sole props/partnerships) or 30 Nov (companies) each YA; scheme runs YA 2024 to YA 2028
- 1Track and document qualifying spend across the five EIS activities during your financial year
- 2Claim the enhanced deductions when filing your Income Tax Return (Form C-S/C)
- 3If converting to cash instead, apply via IRAS digital service 'Apply for EIS Cash Payout' after filing, before your return's filing due date
- 4Keep all supporting records (invoices, agreements) for 7 years in case of IRAS audit
Advisor's note
You cannot claim the enhanced deduction AND convert the same expenditure to cash, and the 20% cash conversion is worth far less than the deduction if you are profitable; also note sole proprietors do not count as employees for the training category.
Planning a digitalisation or overseas-expansion project? Those usually run under EDG or MRA, which our team delivers end to end.
Common questions
How much does the EIS cover?
400% tax deduction/allowance on the first S$400,000 of qualifying spend per activity per YA; optional cash conversion at 20% on up to S$100,000 of qualifying spend, s$20,000 cash payout per YA (if converting), or enhanced deductions on up to S$400,000 per qualifying activity per YA; available YA 2024 to YA 2028. A tax scheme that gives your business 400% tax deductions or allowances on the first S$400,000 you spend each year on innovation activities like R&D, IP registration, and staff training. If you are not yet profitable, you can convert up to S$100,000 of that qualifying spend into a non-taxable cash payout of up to S$20,000 per year instead.
Who is eligible for the EIS?
Sole proprietorships, partnerships, and companies carrying on active business in Singapore Businesses spending on R&D, IP, training, or innovation projects For the cash payout: businesses with at least 3 full-time local employees for 6+ months in the basis period Loss-making or low-profit businesses that cannot use tax deductions benefit most from the cash option
What does the EIS pay for?
Qualifying R&D undertaken in Singapore Registration of IP (patents, trademarks, designs) and acquisition/licensing of IP rights Training of employees on qualifying courses Innovation projects done with polytechnics, ITE, or other qualified partners
How do I apply for the EIS?
1. Track and document qualifying spend across the five EIS activities during your financial year 2. Claim the enhanced deductions when filing your Income Tax Return (Form C-S/C) 3. If converting to cash instead, apply via IRAS digital service 'Apply for EIS Cash Payout' after filing, before your return's filing due date 4. Keep all supporting records (invoices, agreements) for 7 years in case of IRAS audit
How long does the EIS take?
Claimed with your annual tax filing; cash payout applications close 18 Apr (sole props/partnerships) or 30 Nov (companies) each YA; scheme runs YA 2024 to YA 2028
Find out what the EIS will co-fund for you.
15 minutes on WhatsApp. We check your eligibility, the realistic support amount, and whether a different grant fits better. No fee, no obligation.
WhatsApp us nowOften claimed together
EDGE · Enterprise Singapore
EDGE (Unified Enterprise Grant)
Announced at Budget 2026: one unified grant that consolidates EDG, PSG and MRA into a single activity-based application covering digitalisation, overseas expansion, and enterprise efficiency. Launching in the second half of 2026 and open to ALL Singapore businesses, including non-SMEs.
EDG · Enterprise Singapore
Enterprise Development Grant
The flagship SME grant. Co-funds up to 50% of qualified project costs for business upgrading, innovation, and overseas growth projects, including consultancy fees, software, equipment, and internal manpower tied to the project.
ACT Fund · Singapore Food Agency
Agri-food Cluster Transformation (ACT) Fund
SFA's fund to make local farms more productive, climate-resilient, and resource-efficient, now in its second phase (ACT Fund 2) with S$70 million committed through 31 March 2031. It co-funds farming equipment and pre-scoped solutions, large-scale high-tech production systems, and new industry partnership projects.
BIF · Singapore Tourism Board
Business Improvement Fund (BIF)
STB's grant for tourism businesses (and tech companies building tourism solutions) to fund technology adoption, business model redesign, automation, and sustainability projects. SMEs get up to 70% of qualifying costs supported, non-SMEs up to 50%, paid on reimbursement after milestones.