EIS or DTD? Which R&D Incentive Saves You More

Use this guide to quickly decide between EIS and DTD for your business activities. Both are tax incentives (not cash grants) that reduce your tax bill through enhanced deductions.

Read This First

• Neither is a cash grant: Both EIS and DTD reduce taxable income. You need taxable profits to benefit (unless you use EIS cash payout option).
• EIS cash payout option: Loss-making or low-profit companies can convert up to S$100K of qualifying expenses at 20% = S$20K cash.
• Don’t confuse the deduction rates:
  • EIS = 400% deduction on first S$400K (net benefit: 68% tax savings at 17% corporate tax)
  • DTD = 200% deduction on first S$150K (net benefit: 34% tax savings at 17% corporate tax)
• Different focus areas:
  • EIS = Innovation, R&D, IP registration, training
  • DTD = Overseas market expansion, trade fairs, business trips

Quick Decision Matrix

Legend: ✓ = Use this incentive | — = Not applicable

At a Glance

Decision Flow

Common Scenarios

• “I’m developing a new software product” → EIS (R&D category, 400% deduction)
• “I want to patent my invention in the US and EU” → EIS (IP registration category)
• “I’m sending my team to a trade fair in Germany” → DTD (trade fair expenses, 200% deduction)
• “I’m hiring a consultant to conduct R&D” → EIS (outsourced R&D, must be with approved local institution for full benefit)
• “I’m doing a market study for Japan expansion” → DTD (market feasibility study)
• “I’m training staff on new technology” → EIS (training category, must be approved courses)
• “My company is making losses but I spent on R&D” → EIS cash payout (convert up to S$100K at 20% = S$20K cash)

Before You Apply

1. Keep proper records: Both incentives require supporting documents (invoices, contracts, receipts)
2. EIS categories are separate: You can claim up to S$400K per category (R&D, IP, training, innovation) — not combined
3. DTD has two tiers:
   • First S$150K: Automatic 200% deduction
   • Above S$150K: Need EnterpriseSG approval via Business Grants Portal
4. Claim at tax filing: Both incentives are claimed in your annual tax return (Form C-S or Form C)
5. Can combine with grants: You can use EIS/DTD deductions on the portion of expenses not covered by grants

Related Guides

• Enterprise Innovation Scheme (EIS) — full eligibility, categories, and claiming process
• Double Tax Deduction for Internationalisation (DTD) — detailed guide on qualifying activities
• EIS Claim Checklist — documents and deadlines for EIS claims
• Grant Pitfalls Guide — common mistakes to avoid
• Singapore Grants Glossary — key terms explained
• Corppass Setup Guide — how to set up BGP access

Official Links

• EIS: IRAS Official Guide
• DTD: IRAS Official Guide
• DTD: EnterpriseSG