The government of Singapore announced a new enterprise innovation scheme in Budget 2023 .The Enterprise Innovation Scheme (EIS) is a new initiative announced in Budget 2023 to encourage businesses to engage in research and development, innovation, and capability development activities. The EIS will enhance existing tax measures and introduce a new tax measure to support eligible businesses. Additionally, businesses that qualify for the EIS may choose to convert up to $100,000 of their total qualifying expenditure for each Year of Assessment into cash at a conversion rate of 20%. Overall, the EIS aims to incentivize businesses to invest in innovative and technology-driven activities to drive economic growth and competitiveness. Under the Enterprise Innovation Scheme (EIS) announced in Budget 2023, businesses engaged in qualifying activities such as Research and Development (R&D), registration of intellectual property (IP), acquisition and licensing of IP rights (IPRs), training, and innovation projects with qualified partners will be eligible for enhanced or new tax deductions and allowances on qualifying expenditure incurred in Singapore. This means that businesses can potentially reduce their tax liabilities by claiming these deductions and allowances on their qualifying expenditures. The EIS is designed to encourage and incentivize businesses to invest in activities that promote innovation, technology development, and capability building to enhance their competitiveness and contribute to Singapore’s economic growth.
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