Page 8 - RSM Budget 2023 Highlights

CORPORATIONS AND BUSINESSES
CORPORATIONS AND BUSINESSES

Current Amount of tax
Qualifying sunset Amount of tax deductions/allowances deductions/allowances granted
activities granted before YA 2024
clause from YA 2024 to YA 2028

c) Acquisition YA 2025  100% writing-down allowance  400% tax deduction and/or
2, 3
of IP rights (“WDA”) over a period of 5, 10 or 15 allowance on first $400,000
years on acquisition cost of (combined cap) of qualifying IP
qualifying IP rights [section 19B of rights acquisition costs and/or
ITA] qualifying IP rights licensing
expenditure
d) Licensing of YA 2025  100% tax deduction on qualifying IP
IP rights rights licensing expenditure  100% tax deduction and/or
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[section 14 or 14C of ITA] allowance on the balance in
excess of $400,000
 Additional 100% tax deduction on
first $100,000 of qualifying IP
rights licensing expenditure
[section 14U of ITA]

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e) Training N/A  100% tax deduction on training  400% tax deduction for the first
expenditure [sections 14 and 15 of $400,000 of qualifying training

ITA] expenditure (net of Government
grant and subsidy)
 100% tax deduction on balance of
qualifying expenditure in excess
of $400,000, and all other
training expenditure

f) Innovation N/A  No tax relief prior to YA 2024  New tax measure introduced
projects  Not tax deductible if expenditure is  400% tax deduction on first
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carried out capital in nature and does not meet $50,000 of qualifying innovation
with the definition of R&D under section expenditure (net of Government
Polytechnics, 2 of ITA grant and subsidy)
Institute of
Technical
Education or
other
qualified
partners

 The sunset dates for section 14A (Deduction for costs of protecting IP), section 14C (Deduction for qualifying
expenditure on R&D), section 14D (Enhanced deduction for qualifying expenditure on R&D), section 14U
(Enhanced deduction for expenditure on licensing IP rights) and section 19B (WDA for capital expenditure on
acquiring IP rights) of the ITA will be extended till YA2028, in line with the above enhancements.
All other conditions under sections 14A, 14C, 14D, 14U and 19B of the ITA remain the same.

2 To qualify for the enhanced allowances and cash payout option, the one-year-ownership period applies. Claw-back provisions shall apply if the
one-year-ownership period requirement is not complied with.
3 The 400% enhanced deduction and/or allowance will only be available to businesses that generate less than $500 million in revenue in the
relevant YA. Revenue refers to the income that arises from the ordinary course of a business. It refers to the business’ main source of income,
excluding separate source income. The revenue criterion will be applied on a group level if the entity is part of a group.
4 Refers to courses that are eligible for SkillsFuture Singapore funding and aligned with the Skills Framework).The list of courses that are eligible
is available on go.gov.sg/eis-training.
5 The qualifying innovation projects refer to projects that predominantly involve one or more of the following innovation activities defined within
the Oslo Manual 2018 found at https://www.oecd.org/science/oslo-manual-2018-9789264304604-en.htm:
a) Research and experimental development activities;
b) Engineering, design, and other creative work activities;
c) IP-related activities; and
d) Software development and database activities.

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