INCENTIVES FOR BUSINESSES
We welcome businesses to leverage Singapore as a strategic vantage base, from which to implement your growth strategies and to manage and integrate your operations for the region and beyond. Eligible businesses with substantive plans to grow through conducting high value activities in Singapore may apply to qualify for our various incentives programmes. Successful applicants would be required to satisfy rigorous requirements with respect to the scale and qualitative aspects of the activities to be conducted here.
The International Headquarters Award provides a reduced corporate tax rate of 5% or 10% on incremental income from qualifying activities. Applicants are required to submit plans for substantive global headquarters activities to be carried out in Singapore, including proposed commitments in incremental business spending and creation of professional employment.
The Land Intensification Allowance provides an initial tax allowance of 25% and annual tax allowance of 5% on qualifying capital expenditure incurred for the construction or renovation/extension of a qualifying building or structure. Download main brochure.
During Budget 2014, changes were announced to enhance the LIA. You can find more information on the enhancements in this supplementary brochure.
During Budget 2016, further changes were announced to encourage higher industrial land productivity. The LIA scheme will be extended to buildings used by a user or multiple users, who are related, for one or multiple qualifying trades or businesses, if certain conditions are met. The changes only apply prospectively, beginning 25 March 2016. Further details will be released in July 2016. Meanwhile, for more information, please contact Alger Ang at email@example.com.
The Integrated Investment Allowance provides an allowance based on a percentage of approved fixed capital expenditure to be incurred on productive equipment that is placed outside Singapore for an approved project.This allowance is granted on top of the normal capital allowance.
The Mergers and Acquisitions Scheme provides an allowance of 25 percent of the value of acquisition, subject to a maximum of $10 million for each year of assessment. It also provides deductibility of transaction costs and stamp duty relief. EDB's approval is required for the waiver of the condition that the ultimate holding company for the group must be incorporated and tax resident in Singapore.
The Pioneer Incentive provides a corporate tax exemption on income from qualifying activities. Applicants are required to submit plans for new, substantive economic contributions, which must include commitments in significant incremental capital expenditure, business spending and skilled jobs in Singapore, as well as anchoring leading-edge technology, skills or activities in Singapore. Factors of consideration also include the significance of the proposed investment to the development of the industries in Singapore, contributions to the growth of research and development and innovation capabilities, as well as potential spin-off to the rest of the economy.
The Development and Expansion Incentive provides a reduced corporate tax rate of 5% or 10% on incremental income from qualifying activities. Applicants are required to submit plans for substantive commitments in manufacturing or growing leading-edge activities or capabilities in Singapore. Factors of consideration also include the significance of the proposed investment to the development of the industries in Singapore, contributions to the growth of research and development and innovation capabilities, as well as potential spin-off to the rest of the economy.
The Finance and Treasury Centre Tax Incentive provides a reduced corporate tax rate of 8% on fees, interest and gains from qualifying services and activities. It also provides a withholding tax exemption on interest payments on loans from non-resident banks as well as loans and deposits from non-resident approved network companies, for FTC activities.
The Aircraft Leasing Scheme provides a reduced corporate tax rate on income accruing in or derived from Singapore from leasing of aircraft or aircraft engine and prescribed activities. It also provides automatic withholding tax exemption on qualifying payments on qualifying foreign loans for the purchase of aircraft or aircraft engines. Download Aircraft Leasing Scheme 2012 Circular
The Research Incentive Scheme for Companies (RISC) awards government grants to develop research and development capabilities in strategic areas of technology.
The Initiatives in New Technology (INTECH) Scheme awards government training grants to encourage capability development in applying new technologies, industrial R&D and professional know-how.
The Land Productivity Grant seeks to support companies which are interested to optimise land use through domestic or overseas relocation. Download Fact Sheet
For more information on other research and development schemes, click here.
Please note that applications for incentive programmes will be considered on individual merits and in accordance with internal guidelines. Nothing on this website shall constitute a commitment by EDB to ensure the continued availability of any incentive programme, or to approve, or procure the approval of, any application.
For statutes relating to the tax incentives in the above, please refer to the Economic Expansion Incentives Act and the Income Tax Act, at the following link: http://statutes.agc.gov.sg. For further enquiries, visit EDB's Client Services Centre or contact them at (65) 6832 6832.
Visit the following link to understand business opportunities in Singapore.