Singapore's EIS adds AI expenditure: 400% tax deduction on up to S$50k

Budget 2026 added qualifying AI expenditure as a new category under the Enterprise Innovation Scheme (EIS): companies can claim a 400% tax deduction on up to S$50,000 of qualifying AI spend per Year of Assessment, for YA 2027 and YA 2028. That is up to S$200,000 in enhanced deductions a year, worth roughly S$34,000 in tax savings at the 17% corporate rate. Unlike other EIS categories, the cash-payout conversion option does not apply to AI expenditure, and IRAS was set to release detailed qualifying criteria by mid-2026.