[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-638866-105":3,"detail-sidebar-cat-0-en-105":80,"doc-detail-638866-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":73,"head_meta":75,"extra_data":77,"updated_unix":79},105,"en","enterprise-innovation-scheme-eis-new-tax-incentive-for-ai-adoption","Enterprise Innovation Scheme (EIS) - New Tax Incentive for AI Adoption","","Singapore introduces an enhanced tax incentive under the Enterprise Innovation Scheme (EIS) to encourage business adoption of Artificial Intelligence (AI). Announced in Budget 2026, EIS adds an AI qualifying activity with enhanced tax deductions for qualifying AI expenditure incurred in YA 2027 and YA 2028. Businesses may claim deductions up to 400%, subject to a S$50,000 annual cap, under Section 14ZK and IRAS’s updated EIS e-Tax Guide. The rules cover qualified AI systems and AI business services, while excluding hardware and certain non-qualifying expenditures.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/enterprise-innovation-scheme-eis-new-tax-incentive-for-ai-adoption/638866/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/enterprise-innovation-scheme-eis-new-tax-incentive-for-ai-adoption/638866.png","ImageObject",300,407,{"name":42,"@type":43},"QWQ","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-29","2026-10-22",true,{"@type":52,"interactionType":53,"userInteractionCount":26},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"What tax benefit can businesses get under the new AI EIS rules?","Question",{"text":62,"@type":63},"Businesses may claim enhanced tax deductions on qualifying AI expenditure, with deductions of up to 400% subject to a maximum expenditure cap of S$50,000 per Year of Assessment.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"Which types of AI expenditure qualify under EIS?",{"text":67,"@type":63},"Qualifying expenditure broadly includes subscriptions or licences for AI systems (e.g., conversational AI, machine learning, natural language processing) and AI business services linked to development, deployment, operation, or maintenance of an AI system.",{"name":69,"@type":60,"acceptedAnswer":70},"What expenditure is excluded from the AI adoption incentive?",{"text":71,"@type":63},"The legislation specifically excludes servers, storage devices, computing equipment, physical infrastructure, government grant-funded expenditure, sub-licensed AI systems, and expenditure already claimed under other tax provisions.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},638866,1792700224,{"code":4,"msg":81,"data":82},"success",[83,87,91,95,100,105,110,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":84,"show_sort_weight":85,"slug":86},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":88,"show_sort_weight":89,"slug":90},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":92,"show_sort_weight":93,"slug":94},"Exam",70,"exam",{"id":96,"doc_module":4,"doc_module_name":25,"category_name":97,"show_sort_weight":98,"slug":99},5,"Comic",60,"comic",{"id":101,"doc_module":4,"doc_module_name":25,"category_name":102,"show_sort_weight":103,"slug":104},6,"Technology",50,"technology",{"id":106,"doc_module":4,"doc_module_name":25,"category_name":107,"show_sort_weight":108,"slug":109},7,"Healthcare",40,"healthcare",{"id":111,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":112,"slug":113},8,30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":96,"slug":129},19,"General","general",{"code":4,"msg":81,"data":131},{"doc_id":78,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":111,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":26,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":139,"language":140,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":12,"update_tm":79,"read_time":144},962094510011,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","CLA Global TS  \nThe Growth Strategist For Asia  \nEnterprise Innovation Scheme (EIS):  \nNew Tax Incentive for AI Adoption  \nSeptember 2026  \n© 2026 CLA Global TS. All rights reserved.  \nSingapore Introduces Enhanced Tax Support for AI Investment  \nAs businesses increasingly incorporate Artificial Intelligence (AI) into their operations, Singapore has introduced a new tax incentive designed to encourage AI adoption across the economy.  \nAs part of the enhancements announced in Budget 2026, the Enterprise Innovation Scheme (EIS) now includes a new qualifying activity for the adoption of AI. Businesses may claim enhanced tax deductions on qualifying AI expenditure incurred in YA 2027 and YA 2028. The new provisions are set out in Section 14ZK of the Income Tax Act and further clarified in IRAS' updated EIS e-Tax Guide published on 31 August 2026.  \nThe introduction of an AI-specific tax incentive reflects the Government's broader objective of encouraging businesses to harness AI technologies to improve productivity, strengthen competitiveness and support workforce transformation.  \nENTERPRISE INNOVATION SCHEME (EIS): NEW TAX INCENTIVE FOR AI ADOPTION  \nWhat Is the Tax Benefit?  \nUnder the new rules, businesses may enjoy tax deductions of up to 400% on qualifying AI expenditure, subject to a maximum expenditure cap of S$50,000 per Year of Assessment.  \nThe deduction is structured as follows:  \nNature of expenditure  \nAI expenditure otherwise deductible under Section 14 of the Singapore Income Tax Act  \nAI expenditure not otherwise deductible under Section 14 of the Singapore Income Tax Act  \nDeduction available  \n100% base deduction + 300% enhanced deduction  \n400% deduction  \nA business that incurs S$50,000 of qualifying AI expenditure may therefore potentially enjoy up to S$200,000 of tax deductions.  \nVisuals designed by Freepik. 3  \nUnlike certain other EIS activities, the cash conversion option is not available for AI expenditure. Businesses can only benefit through enhanced deductions.  \nENTERPRISE INNOVATION SCHEME (EIS): NEW TAX INCENTIVE FOR AI ADOPTION  \nWhat Types of AI Expenditure Qualify?  \nThe legislation broadly recognises two categories of qualifying expenditure.  \n1. AI Systems  \nQualifying expenditure includes subscriptions or licences for AI systems.  \nExamples include:  \nConversational AI and generative language models  \nMachine learning and deep learning systems  \nNatural language processing applications  \nAI-powered translation and sentiment analysis tools  \nComputer vision applications such as facial recognition and object detection  \nsystems  \nFrom a practical perspective, this may potentially include enterprise AI platforms, AI copilots, generative AI solutions and AI-enabled software products.  \n4  \nENTERPRISE INNOVATION SCHEME (EIS): NEW TAX INCENTIVE FOR AI ADOPTION  \n2. AI Business Services  \nQualifying expenditure also includes services that support the adoption or development of AI within a business.  \nExamples include:  \n AI strategy and consultancy services  \n AI implementation and deployment projects  \n AI platform services  \n Data and analytics services  \n System engineering and compliance services  \n AI-related training services  \n AI development and maintenance services  \nImportantly, IRAS has clarified that such services must relate to the development, deployment, operation or maintenance of an AI system. General consulting projects that do not involve AI implementation may not qualify.  \n5  \nENTERPRISE INNOVATION SCHEME (EIS): NEW TAX INCENTIVE FOR AI ADOPTION  \nWhat Does Not Qualify?  \nBusinesses should also be aware of the specific exclusions under the legislation.  \nThe following expenditure is specifically excluded:  \n Servers  \n Storage devices  \n Computing equipment  \n Physical infrastructure  \n Government grant-funded expenditure  \n Sub-licensed AI systems  \n Expenditure that has already been claimed under certain other tax provisions  \nThis suggests that the incentive is primarily focused on AI","cbCaiiFsrPFZavpw","https://ap.wps.com/l/cbCaiiFsrPFZavpw","pdf",3151281,11,"English","# Enterprise Innovation Scheme (EIS): New Tax Incentive for AI Adoption\n## What Is the Tax Benefit?\n## What Types of AI Expenditure Qualify?\n## What Does Not Qualify?\n## An Important Practical Issue: Software Bundles\n## How Businesses Can Prepare","[{\"question\":\"What tax benefit can businesses get under the new AI EIS rules?\",\"answer\":\"Businesses may claim enhanced tax deductions on qualifying AI expenditure, with deductions of up to 400% subject to a maximum expenditure cap of S$50,000 per Year of Assessment.\"},{\"question\":\"Which types of AI expenditure qualify under EIS?\",\"answer\":\"Qualifying expenditure broadly includes subscriptions or licences for AI systems (e.g., conversational AI, machine learning, natural language processing) and AI business services linked to development, deployment, operation, or maintenance of an AI system.\"},{\"question\":\"What expenditure is excluded from the AI adoption incentive?\",\"answer\":\"The legislation specifically excludes servers, storage devices, computing equipment, physical infrastructure, government grant-funded expenditure, sub-licensed AI systems, and expenditure already claimed under other tax provisions.\"}]","Enterprise Innovation Scheme (EIS) - New Tax Incentive for AI Adoption | PDF",28]