Incentives & Schemes | Business Grants | Singapore

Singapore Business Incentives

Singapore offers a wide range of incentives and schemes to encourage businesses to grow and invest in the country. These incentives are broadly categorized into:   

• Incentives for Growing Industries: These aim to attract companies in key sectors that contribute to Singapore's economic growth. Examples include:

  • Refundable Investment Credit (RIC): A tax credit with a refundable cash feature for companies undertaking substantive and high-value economic activities.   

  • Pioneer Certificate Incentive (PC) & Development and Expansion Incentive (DEI): Incentives to encourage companies to grow capabilities and conduct new or expanded economic activities in Singapore.   

  • Finance & Treasury Centre (FTC) Incentive: Encourages companies to grow treasury management capabilities and use Singapore as a base for conducting strategic finance and treasury management activities.   

• Incentives for Innovation, R&D, and Capability Development: These aim to foster innovation and technological advancement in Singapore. Examples include:   

  • Intellectual Property (IP) Development Incentive (IDI): Encourages the use and commercialization of intellectual property rights arising from research and development (R&D) activities.   

  • Partnerships for Capability Transformation (PACT) Scheme: Helps original equipment manufacturers (OEMs) and their suppliers cover a portion of costs related to equipment, materials, testing, and professional services.   

  • Research and Innovation Scheme for Companies (RIS(C)): Encourages companies' technology development and innovation activities.   

• Grants for Specific Needs: These grants cater to specific business needs, such as:

  • Productivity Solutions Grant (PSG): Helps businesses improve productivity through IT solutions and equipment.   

  • Market Readiness Assistance (MRA) Grant: Supports business development, promotion and set-up costs for new overseas market expansion.   

  • SkillsFuture Enterprise Credit (SFEC): Encourages businesses to invest in enterprise transformation and capabilities of their employees.   

Remember:

• The specific incentives and schemes available to your business will depend on various factors, such as your industry, size, and activities.

• It's essential to research and understand the eligibility criteria and application process for each incentive before applying.

Let's delve deeper into some key incentive schemes and grants in Singapore, providing more details and context:

1. Refundable Investment Credit (RIC):

• Purpose: Attract and retain high-value economic activities in Singapore. This is a significant shift from traditional tax deductions, offering a direct cash benefit.

• Key Features:  A tax credit that can be used to offset corporate income tax. Critically, any unutilized credits can be refunded in cash, making it particularly attractive for companies with large upfront investments or those in a loss-making position during their initial years of operation.

• Target Activities:  Generally aimed at companies undertaking substantial investments in areas aligned with Singapore's economic priorities, such as manufacturing, digital services, research and development, and headquarters activities. The "substantive" requirement is crucial; it's not simply about setting up a presence but demonstrating genuine economic activity and job creation.

• More Information:  Contact the EDB directly for specific eligibility criteria and application details, as the RIC is tailored to individual projects.

2. Pioneer Certificate Incentive (PC) & Development and Expansion Incentive (DEI):

• Purpose: Encourage companies to undertake pioneering activities or expand existing operations in Singapore.

• PC:  Offers tax exemption for a specified period for companies engaged in activities that are new and innovative in Singapore. This is generally for truly groundbreaking projects that contribute significantly to the economy.

• DEI:  Provides tax concessions for companies expanding their existing operations in Singapore. This can include expanding manufacturing capacity, setting up regional headquarters, or undertaking significant R&D activities.

• Key Difference: PC is for new activities, while DEI is for the expansion of existing ones.

• More Information:  Again, the EDB is the primary contact for detailed information and application procedures.

3. Finance & Treasury Centre (FTC) Incentive:

• Purpose: Develop Singapore as a leading hub for treasury management activities.

• Benefits:  Concessional tax rates on income derived from qualifying treasury and financing activities. This encourages multinational corporations to centralize their treasury functions in Singapore.

• Target Activities:  Cash management, foreign exchange trading, investment management, and corporate finance advisory.

• More Information:  The Inland Revenue Authority of Singapore (IRAS) website provides details on the FTC scheme.

4. Productivity Solutions Grant (PSG):

• Purpose:  Help small and medium-sized enterprises (SMEs) adopt IT solutions and equipment to improve productivity.

• Features:  Covers a portion of the qualifying costs for pre-approved IT solutions and equipment. This significantly reduces the financial burden on SMEs when implementing new technologies.

• Focus Areas:  Solutions related to areas like customer relationship management (CRM), inventory management, and data analytics.

• More Information:  The Enterprise Singapore website provides a list of pre-approved solutions and vendors.

5. Market Readiness Assistance (MRA) Grant:

• Purpose: Support businesses in their efforts to expand overseas.

• Coverage:  Covers eligible costs related to overseas business development, such as market research, participation in overseas trade fairs, and setting up overseas offices.

• More Information:  Enterprise Singapore is the go-to source for details on the MRA grant.

6. SkillsFuture Enterprise Credit (SFEC):

• Purpose: Encourage businesses to invest in workforce training and transformation.

• Benefits:  Provides credits that can be used to offset the costs of eligible training courses for employees. This helps businesses upskill their workforce and remain competitive.

• More Information:  SkillsFuture Singapore manages the SFEC scheme, and their website contains relevant information.

Key Considerations When Applying for Incentives:

• Eligibility:  Carefully review the eligibility criteria for each incentive. Requirements can vary significantly.

• Application Process:  Understand the application process and required documentation. Be prepared to provide detailed information about your business and proposed activities.

• Timeline:  Be aware of application deadlines and processing times. Some incentives may have specific application windows.

• Compliance:  Ensure ongoing compliance with the terms and conditions of the incentive. Failure to comply can result in penalties.

Direct engagement with the relevant government agencies (EDB, Enterprise Singapore, IRAS, SkillsFuture Singapore) is highly recommended. They can provide personalized guidance and clarify any doubts you may have. Don't hesitate to reach out to them early in the process.

Where to Find More Information:

• Economic Development Board (EDB): The EDB website provides detailed information on various incentives and schemes available in Singapore. You can find their page on incentives and schemes here: https://www.edb.gov.sg/en/grants/incentives-and-schemes.html   

• Enterprise Singapore: This agency offers grants and support to help businesses grow and expand. Their website provides information on financial support and grants: https://www.enterprisesg.gov.sg/financial-support   

How Bestar can Help

Bestar is a business consultancy firm in Singapore that offers a wide range of services to help businesses of all sizes, from startups to established enterprises. Here's how we can assist you, particularly in navigating the incentives and schemes landscape:   

1. Company Incorporation and Setup:

• Bestar can guide you through the process of setting up a company in Singapore, including company registration, obtaining necessary licenses and permits, and ensuring compliance with regulations.   

• This is crucial when applying for incentives, as some may have specific requirements regarding the company's legal structure and registration status.

2. Accounting and Financial Services:

• Bestar provides accounting, bookkeeping, tax advisory, and compliance services.   

• Accurate financial records are essential when applying for grants and incentives, as you'll need to demonstrate your financial stability and eligibility.   

• We can also help you with tax planning to optimize your tax liabilities while ensuring compliance with tax regulations.   

3. Business Advisory Services:

• Bestar offers business advisory services, including assistance with business planning, strategy development, risk management, and operational efficiency.   

• We can help you identify relevant incentives and schemes that align with your business goals and activities.   

• Our expertise can be invaluable in crafting a compelling application for grants and incentives, highlighting your business's potential and how the funds will be utilized.

4. Grant Application Assistance:

• Bestar can assist you with the entire grant application process, from identifying suitable grants to preparing and submitting the required documentation.   

• We can help you understand the eligibility criteria, application procedures, and assessment criteria for various grants and incentives.   

• Our experience in this area can significantly increase your chances of securing funding.   

5. HR and Payroll Services:

• Bestar offers HR and payroll services, including assistance with employment pass applications, payroll processing, and HR consulting.   

• Some incentives may be tied to job creation or skills development, and Bestar can help you navigate these requirements.

6. Corporate Secretarial Services:

• Bestar provides corporate secretarial services, ensuring compliance with statutory requirements and maintaining corporate records.   

• This is important for maintaining good standing with government agencies, which is crucial when applying for incentives.

Why Choose Bestar?

• Expertise: Bestar has a team of experienced professionals with in-depth knowledge of Singapore's business environment and incentive schemes.   

• Comprehensive Services: We offer a wide range of services, allowing you to address various aspects of your business needs under one roof.   

• Personalized Approach: We work closely with clients to understand their specific needs and provide tailored solutions.   

• Focus on Compliance: We ensure that your business complies with all relevant regulations, reducing the risk of penalties or disqualification from incentives.   

In the context of incentives and schemes:

Bestar can be particularly helpful in:

• Identifying the right incentives: They can help you navigate the complex landscape of grants and schemes to find those that are most relevant to your business.

• Preparing a strong application: They can assist you in crafting a compelling application that highlights your business's potential and justifies your need for funding.

• Ensuring compliance: They can help you understand the terms and conditions of the incentives and ensure that you comply with all requirements.   

By leveraging Bestar's expertise and services, you can increase your chances of successfully obtaining grants and incentives to support your business growth in Singapore.

To get started:

• Visit their website: https://bestarservices.com.sg/

• Contact them directly to discuss your specific needs and how they can assist you.

Remember that securing grants and incentives can be a competitive process. Bestar's support can give you a significant advantage in navigating this landscape and achieving your business goals.