---
title: "R&D Tax Deductions & Enhanced Deductions in Singapore"
description: "Maximize your company's tax savings with Singapore's R&D tax deductions. Learn how to claim enhanced deductions for qualifying R&D expenses."
url: "https://corporate.taxinfo.sg/deductions/rd-tax-deductions"
language: "en"
---

[Home](/)›[Deductions](/deductions)›R&D Tax Deductions Deductions R&D Tax Deductions & Enhanced Deductions Spending on research and development? You may be able to claim 150% to 400% tax deductions on qualifying R&D expenses — here's how. Who This Is For Companies investing in product development, process innovation, or scientific research who want to maximise their tax deductions. TL;DR Singapore offers generous tax deductions for R&D: **100% base deduction** on all qualifying R&D expenses, plus an **additional 150% enhanced deduction** on R&D done in Singapore \(total 250%\). For R&D done overseas and meeting certain conditions, a 100% deduction applies. Staff costs and consumables for qualifying R&D projects may qualify for even higher deductions under certain schemes. Types of R&D Deductions Deduction Type | Rate | Conditions  
---|---|---  
Section 14C — Base R&D deduction| 100%| Revenue R&D expenditure related to your trade/business  
Section 14E — Enhanced \(R&D in Singapore\)| 150% additional| R&D performed in Singapore; staff costs and consumables  
Total for Singapore R&D| 250%| 100% base + 150% enhanced  
R&D done overseas| 100%| Must be related to trade; no enhanced deduction  
What Qualifies as R&D? IRAS defines qualifying R&D as **systematic, investigative, or experimental activities** that involve novelty or technical uncertainty:

  * **Basic research:** Acquiring new scientific/technical knowledge without specific application
  * **Applied research:** Acquiring knowledge directed at a specific practical aim
  * **Experimental development:** Using research findings to develop new or improved products/processes

Qualifies ✓

  * • Developing new software products
  * • Improving manufacturing processes
  * • Creating new materials or formulations
  * • Clinical trials for new treatments
  * • Prototype development and testing

Doesn't Qualify ✗

  * • Routine quality testing
  * • Market research or surveys
  * • Cosmetic UI changes
  * • Software customisation \(not novel\)
  * • Purchasing existing technology

Qualifying Expenses

  * **Staff costs:** Salaries, wages, CPF of employees directly engaged in R&D
  * **Consumables:** Materials used and consumed during R&D activities
  * **Outsourced R &D:** Payments to R&D organisations for contracted research
  * **Equipment:** Claim [capital allowances](/deductions/capital-allowances) on R&D equipment separately

Worked Example Scenario: MedTech Pte Ltd — R&D on new device R&D staff costs: S$80,000. Consumables: S$20,000. All R&D done in Singapore. Qualifying R&D expenses| S$100,000  
---|---  
Base deduction \(100%\)| S$100,000  
Enhanced deduction \(150%\)| S$150,000  
Total deduction \(250%\)| S$250,000  
Tax savings @ 17%| S$42,500  
S$100,000 in R&D spending generates S$250,000 in tax deductions, saving S$42,500 in tax. The government effectively subsidises 42.5% of your R&D cost through tax savings. Key Takeaways

  * ✓ R&D in Singapore: up to 250% deduction \(100% base + 150% enhanced\)
  * ✓ Must involve novelty or technical uncertainty — not routine work
  * ✓ Staff costs and consumables are the main qualifying expenses
  * ✓ Keep detailed records of R&D activities and expenditure
  * ✓ Overseas R&D: 100% deduction only \(no enhancement\)

What To Do Next Identify your R&D activities and quantify qualifying expenses. Ensure you document the nature and purpose of each R&D project. For other deduction opportunities, see [tax-deductible expenses](/deductions/tax-deductible-expenses). For the full range of incentives, visit our [incentives overview](/exemptions/tax-incentives-singapore). For a broad view, see [taxinfo.sg](https://taxinfo.sg/how-to-reduce-tax-singapore). [Related GuideTax-Deductible ExpensesComplete list of allowable deductions.](/deductions/tax-deductible-expenses) [Related GuideTax Incentives OverviewAll incentives including R&D schemes.](/exemptions/tax-incentives-singapore) [Related GuideHow to Reduce Corporate TaxR&D deductions are one of 6 strategies.](/planning/reduce-corporate-tax) [TaxInfo HubTax Reduction StrategiesOverview of ways to legally reduce tax.](https://taxinfo.sg/how-to-reduce-tax-singapore)