Singapore Enterprise Innovation Scheme (EIS): Tax Deduction for IP Registration Guide

What is the Enterprise Innovation Scheme (EIS)?

What is EIS? The Enterprise Innovation Scheme (EIS) is a Singapore tax incentive scheme administered by the Inland Revenue Authority of Singapore (IRAS) to encourage businesses to invest in innovation and intellectual property (IP).

Enhanced Incentive: Save more when protecting your innovations and building your IP assets. Eligible businesses can claim enhanced tax deductions on qualifying IP registration costs incurred from Year of Assessment (YA) 2024 to YA 2028.

How Your Business Benefits

Up to 400% Tax Deduction: Claim up to 400% tax deduction on the first SGD 400,000 of qualifying IP registration expenditure incurred per Year of Assessment.

Standard 100% Tax Deduction: Qualifying expenditure exceeding the annual cap of SGD 400,000 continues to enjoy the standard 100% tax deduction.

Eligibility Requirements

Active Local Operations: The business must conduct active business operations in Singapore.

IP Ownership: The Singapore entity must hold both the legal and economic ownership of the intellectual property.

Minimum Ownership Period: Ownership of the registered IP (or pending application) should generally be retained for at least one year.

Covered IP Types & Qualifying Costs

Covered IP Types: The EIS covers official and professional fees for registering Patents, Trade Marks, Registered Designs, and Plant Varieties.

Qualifying IP Costs Covered:

• Official Filing Fees, Search Fees, Examination Fees, and Registration & Grant Fees.
• Professional Fees: IP Agent Fees, Specification Drafting, Application Preparation, Prior Art Searches, and Translation Costs.

Regardless of Application Outcome: Qualifying registration expenses may remain eligible for enhanced tax deductions even if the IP application is ultimately unsuccessful, subject to applicable IRAS requirements.