Singapore is taking proactive steps to enhance its attractiveness for investments with the introduction of the Refundable Investment Credit (RIC) scheme announced in Budget 2024.
The RIC scheme aims to support high-value economic activities, such as:
- Investing in new productive capacity (e.g., new manufacturing plant, production of low-carbon energy);
- Expanding or establishing the scope of activities in digital services, professional services, and supply chain management;
- Expanding or establishing headquarter activities, or Centres of Excellence;
- Setting up or expansion of activities by commodity trading firms;
- Carrying out R&D and innovation activities; and
- Implementing solutions with decarbonisation objectives.
Administered by the Singapore Economic Development Board (EDB) and Enterprise Singapore (EnterpriseSG), the RIC will be awarded based on qualifying expenditures incurred by companies during a period of up to 10 years.
Qualifying expenditures cover a range of categories such as capital expenditure, manpower costs, training costs, professional fees, intangible asset costs, fees for work outsourced in Singapore, consumables, freight, and logistics costs.
Companies can receive up to 50% support on each qualifying expenditure category, with the total quantum of RIC determined by EDB or EnterpriseSG.
The credits will be offset against corporate income tax payable, and any unused credits will be refunded to the company in cash within four years.
Source: IRAS