Guide To Claiming R & D Benefits After Company Registration With Singapore

To promote business advancement, the governing authorities of Singapore have implemented tax benefits that businesses can claim under the Research and Development Scheme. Companies who have undergone company registration in Singapore and began business can claim tax benefits in the form of deductions for their projects. This will then release the strain of limited capital, thereby allowing business owners to plan for growth at a more efficient pace.

Process

After company registration in Singapore, businesses are given certain leeway and exemptions when it comes to tax. Once they are eligible for filing of income tax returns through either Form C or Form C-S, they can take that opportunity to apply for research and development tax benefits by filling in a Research and Development claim form. Additional information may be requested by IRAS during the process so business owners are advised to provide and maintain all supporting documents.

Once IRAS has evaluated the company’s claim and found the information to be sufficient, business owners will receive its decision on whether the claim is successful or not.

Documents

Business owners are highly advised to maintain all relevant documentation from the start after their singapore company formation so that they are able to provide substantial information whenever requested by IRAS. This is due to the fact that their ability to provide satisfactory information may greatly impact the success of their project claims.

Some examples of documentation that business owners should retain after Singapore company formation includes:

  • Objective Records
  • Marketing Material and Press Statements
  • Website information and patent
  • SIE studies and Test Results

Technical Advisory Panel

As of recent modifications, IRAS has set up a Technical Advisory Panel with the intention of enhancing its ability to determine and review Research and Development applications. Business owners can consider procuring a referral from said panel to determine the outcome of their claims as well.

The referral process is performed upon request from the company or after IRAS has rejected their claims for Research and Development tax benefits after two rounds of reviewing and business owners still wish to pursue their claims.

Their Research and Development project is then referred to the Technical Advisory Panel, which will render their independent opinion before a final decision is made on the claim. To make the case referral successful, business owners must be ready to supply:

  • Their project summary and views
  • Their evaluation result from IRAS
  • All supporting documents and correspondence with IRAS

Business owners who intend to implement large and complicated projects with estimated costs of more than $20 million are recommended to opt for a pre-claim evaluation scheme since it is a structured evaluation process that basically allows them to submit details for evaluation before their commencement date.

Knowing what to expect can make all the difference between success and failure at times. With this knowledge in mind, business owners will better be able to increase their chances of gaining tax benefits after Singapore company formation by taking the right preparations.

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