Singapore

Government Grants in Singapore

The Singapore Government currently provides businesses with a variety of government incentives programs.  Most businesses are aware of some of the grants and incentives that are available to them, but very few are aware of everything that they could be entitled to.

Catalyst Solutions specialises in assisting companies to identify, optimally structure and access government grants and tax incentives.  As a member of the VATit group, Catalyst Solutions is able to leverage a business that has years of experience in a global organisation, dedicated to creating transparent and valuable solutions.

Singaporean R&D Tax Incentives

R&D TAX SAVINGS:  Companies that are developing new products or processes, or improving existing ones, are entitled to favorable tax treatment.  Companies can get between 8.5% and 51% of their expenditure back as a reduction in their tax bill.

R&D CASH PAYOUT:  Small companies that are developing new products or processes, or improving existing ones, and that are not tax-paying, can get a cash payout from the IRAS.  The payout is between 40% and 60% of their expenditure, capped at $60,000 per year.

WHAT IS THE R&D TAX INCENTIVE?

The R&D Tax Incentive is one of the government’s mechanisms to support companies to achieve greater competitiveness, drive innovation and enhance Singaporean capabilities.  The Incentive’s eligibility criteria are intentionally broad, as the government wanted the incentive to be available to a wide range of industries and to companies of all sizes.

Whilst there are many companies that are making use of the Incentive, there are many companies that are unaware that the work that they are doing would actually qualify for this funding, and are therefore missing out on money that they are legitimately entitled to.  The Incentive is unlike most grant programs, which are generally competitive in nature.  As long as your company meets the eligibility criteria it automatically gets the funding.

The Incentive is administered by the IRAS.  Companies need to understand the Incentive’s requirements, processes, deadlines and paperwork.

WHAT ARE THE MOST POPULAR GRANTS?

Outlined below are the government incentives that our clients have shown the most interest in:

Technology Enterprise Commercialisation Scheme (administered by SPRING) – up to 100% of qualifying prototype development and commercialisation expenses reimbursed, up to a maximum of $750,000 per project.

Capability Development Grant (administered by SPRING) – up to 70% of qualifying technology innovation and product development expenses reimbursed.

HOW CATALYST SOLUTIONS CAN HELP?

Catalyst Solutions is a boutique consultancy that offers a focused, efficient and value adding service offering. Our team has qualifications in science, IT, engineering, accounting and law, as well as experience in assisting companies across all industries to access the Incentive. We leverage off our multidisciplinary skillset to ensure that our clients maximize their legitimate entitlement to the government funding, whilst ensuring that the claim process minimizes disruption to their business. Our process is as follows:

  • Educate companies about how to access their full entitlement from the PIC
  • Identify both the ‘obvious’ and the ‘non-obvious’ activities that qualify
    Prepare all necessary documentation to maximize the chances of success
  • Analyse expenditure that qualifies for the PIC to ensure approval by the IRAS
  • Navigating any interactions with the IRAS.

If you have already invested, or are considering investing, in any of the above 6 categories, the Catalyst Solutions offering helps to claim your full entitlement from the PIC.

CONTACT CATALYST SOLUTIONS?

Dave Corbin is the Managing Director of Catalyst Solutions Asia Pacific. He is a Chartered Accountant and has a Bachelor of Science. Dave was previously a Senior Manager in the R&D Incentives team of one of the Big 4 accounting firms. He has assisted companies from all industries to access government funding for their R&D for over 8 years and across 3 continents.

Dave is always keen to discuss whether your company may be eligible for the Incentive and, if so, how the Catalyst Solutions team can work with you. Please contact him on +65 6323 5426 or at dave@catalystsolutions.com.sg.