The Enterprise Innovation Scheme (EIS) is a tax deduction from IRAS, not a grant. You deduct 400% of the first S$50,000 you spend on AI each year from your taxable income, so you pay less tax. It applies for the Years of Assessment (YA) 2027 and 2028, and you claim it in your company's tax return. More details
AI deduction for YA 2027 and YA 2028Spending now? A Year of Assessment covers the financial year before it, so AI you pay for this year may already count. Your accountant confirms which year.
The short answer
Who qualifies
Worked example
This is an example. EIS gives a 400% tax deduction on the first S$50,000 of qualifying AI spending a year. The 400% is the whole deduction, not 400% added to the usual 100%. The corporate tax rate is 17%.
| Qualifying AI spending, after any grant | S$50,000 |
|---|---|
| Deduction at 400% | S$200,000 |
| Tax saved at 17%, before exemptions | S$34,000 |
| Tax the usual 100% deduction would have saved | S$8,500 |
| Extra tax saved thanks to EIS | S$25,500 |
A company with no taxable profit saves nothing that year, because there is no tax to lower and the AI part has no cash payout. The partial tax exemption, which already lowers the tax on the first S$200,000 of profit, also lowers what you save. More details: IRAS EIS page, corporate tax page
What counts
What does not count
Plan ahead
Your next step
Your accountant confirms which financial year your spending falls in and files the claim. We are not tax advisers.
We build the AI agent. On the call we show you what the build costs after any grant, and that share is what the deduction applies to.
How to apply
Documents
Where claims go wrong
Other grants
Each grant supports a different kind of project. Read the one that matches yours, or answer a few questions and we name the grant that most likely fits.
Questions owners ask
The Enterprise Innovation Scheme is an IRAS tax scheme that runs from YA 2024 to YA 2028. It gives bigger tax deductions on five kinds of spending: research and development, registering intellectual property, buying or licensing it, training, and innovation projects with polytechnics or ITE.
Budget 2026 added a sixth, AI adoption, for YA 2027 and YA 2028. More details
For AI adoption, 400% of the first S$50,000 of qualifying spending each year, for YA 2027 and YA 2028. S$50,000 of spending becomes a S$200,000 deduction.
For the other activities, 400% on up to S$400,000 a year. Innovation projects with polytechnics, ITE or other qualified partners get 400% on up to S$50,000. More details
EIS stands for Enterprise Innovation Scheme. IRAS, Singapore's tax authority, runs it, and you claim it in your tax return. It is not a grant, and no agency pays you. More details
No. A grant pays part of your cost. EIS lowers the profit you pay tax on. If your company has no taxable profit, there is no tax to lower. The AI activity has no cash payout. More details
A subscription to, or a licence for, an AI system, and AI business services. IRAS lists an online platform for your business, system development, consultancy and strategy, data and analytics, research and development, system engineering and compliance, and system-related training.
Hardware such as servers, storage devices and computing equipment does not qualify. More details
Not for AI. The other EIS activities let a business convert up to S$100,000 of spending a year into cash at 20%, so at most S$20,000. The AI activity does not offer it. More details
Only on your own share. IRAS excludes any spending subsidised by a government grant. It says the EIS claim amount should be net of any grant or subsidies.
If a grant supports half of a project, the deduction applies to the half you pay. More details
A company declares it under the Enterprise Innovation Scheme section of its Corporate Income Tax Return. A sole proprietor or partnership includes it in allowable business expenses and submits the details through IRAS's digital service.
Ask your accountant which financial year the spending falls in. More details
Official pages
Grant rules change, so check the agency's page before you apply.
Talk to us
In a 20-minute call we tell you which grant fits your project, what to prepare, and what you would pay after the grant, before you sign anything.
