• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 4/3/2014

Singapore - R&D and claims for innovation credits 

April 3:  The Ministry of Finance in Singapore is reviewing the guidelines as to what constitutes design or research and development so as to encourage greater participation in the productivity and innovation credit (PIC) program.

The review is being conducted in light of data from the Inland Revenue Authority of Singapore suggesting that only 3% of PIC claims were related to innovation. There are discussions suggesting that many businesses may have been using the incentives to cut business costs, rather than using them to undertake more difficult and risky investments in innovation.

Read a March 2014 report [PDF 291 KB] prepared by the KPMG member firm in Singapore: Innovation as driver of business capability

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