RIC at a glance
Approving authorities
EDB / Enterprise Singapore
Instrument
Refundable tax credit
Local ownership requirement
None
Who can apply
Singapore-incorporated companies and registered Singapore branches of foreign companies
Support rate
Up to 50% of qualifying expenditure, with current project profiles at 10%, 30% or 50%
Fixed public monetary cap
None - total quantum is determined based on the approved project
Qualifying period
Up to 10 years per RIC award
Project scale
Significant new or expanded investment in Singapore
Application cycle
Approval-based; no fixed public closing date
Application route
Direct engagement with EDB or EnterpriseSG
Tax utilisation
CIT, Domestic Top-up Tax and Multinational Enterprise Top-up Tax
Cash feature
Unutilised RIC can be paid in cash under the stipulated payment schedule
RIC is designed for material investment projects, not routine operating expenditure or small standalone capability projects.
What does the Refundable Investment Credit support?
RIC currently supports six broad categories of economic activity in Singapore:
- New productive capacity - such as new manufacturing capacity or low-carbon energy production.
- Digital services, professional services and supply-chain management - establishing or expanding substantive activities in Singapore.
- Headquarters and Centres of Excellence - expanding regional or global functions and differentiating capabilities.
- R&D and innovation - establishing or expanding research, technology and innovation activities.
- Decarbonisation solutions - implementing projects with meaningful carbon-reduction or resource-efficiency outcomes.
- Commodity trading - establishing or expanding substantive trading activities.
The activity must form part of a substantive investment project and align with Singapore's priority economic-growth areas, such as advanced manufacturing, international trade, supply-chain management, mobility, digitalisation and AI, and the green economy.
Who can apply for RIC?
RIC is open to:
- companies incorporated in Singapore; and
- branches of foreign companies registered in Singapore.
There is no 30% Singaporean / PR ownership requirement comparable to EDGE.
The critical test is instead the economic substance of the proposed project.
The company should be making a significant new or expanded investment that contributes to Singapore's economy and/or advances capabilities in globally leading industries or new growth areas.
For multinational companies evaluating Singapore as a location for a new function, R&D centre, manufacturing investment or regional capability, RIC can therefore be relevant irrespective of foreign ownership.
How much RIC support is available?
RIC can provide support of up to 50% of qualifying expenditure.
Enterprise Singapore's current public RIC factsheet sets out three project profiles - 10%, 30% and 50% - with progressively higher expectations for investment scale, employment, strategic capability and economic impact.
| RIC rate | Indicative minimum scale in current factsheet | Project profile |
|---|---|---|
| 10% | At least S$3m investment + 8 employees | New or expanded capability/capacity in high-value-added activities |
| 30% | At least S$5m investment + 10 employees | Deeper value-creation capabilities, such as CoEs, R&D, IP, advanced solutions or higher-value regional/global activities |
| 50% | At least S$7m investment + 18 employees | Best-in-class operations, major value capture, advanced technologies/capabilities or significant ecosystem impact |
These thresholds should not be read as an automatic entitlement to the corresponding rate.
For example, investing S$7 million and creating 18 jobs does not by itself secure a 50% RIC.
The authorities also assess the quality of the project, including how advanced the capabilities are, the value captured in Singapore, the company's role in regional or global operations, economic spillovers and the project relative to the existing level of development of the relevant Singapore sector.
What determines whether a project receives 10%, 30% or 50%?
RIC assessment combines quantitative commitments and qualitative economic outcomes.
Quantitative considerations include areas such as:
- investment;
- fixed assets;
- local business expenditure;
- employment.
Qualitative considerations can include:
- development of new capabilities;
- creation of meaningful capacity in Singapore;
- R&D and innovation;
- intellectual-property generation;
- advanced technology and know-how;
- regional or global responsibilities;
- resource efficiency;
- supply-chain significance;
- ecosystem spillovers and partnerships;
- whether Singapore becomes an important node in the company's global operations.
The company's existing track record and its ability to successfully implement the proposed project are also considered.
For a CFO or investment team, the practical implication is:
RIC should be structured around the economic case for locating the project in Singapore - not simply around the expenditure budget.
What expenditure can qualify for RIC?
Qualifying expenditure must generally be incurred in Singapore during the approved qualifying period and relate to the approved project.
Depending on the project, support can cover expenditure such as:
| Cost category | Examples |
|---|---|
| Capital expenditure | Buildings, civil and structural works, plant and machinery, software |
| Manpower | Singapore-based employees supporting the qualifying activity |
| Training | Capability-building linked to the project |
| Professional fees | Relevant external professional expenditure |
| Intangible assets | Approved intangible-asset expenditure |
| Outsourced work | Qualifying work outsourced in Singapore |
| Materials and consumables | Project-related materials |
| Freight and logistics | Where relevant to the qualifying project |
| Financing costs | Potentially for specified R&D, innovation, commodity-trading or ecosystem-development projects |
The exact eligible expenditure categories are determined upfront as part of the RIC award.
Expenses such as depreciation, amortisation, maintenance, manpower costs for employees not based in Singapore and expenditure incurred outside Singapore are not qualifying expenditure under the current EnterpriseSG factsheet.
How does the refundable tax credit work?
This is one of the most important differences between RIC and a conventional grant.
Once qualifying expenditure has been incurred and the claim is verified, the approving authority issues a Letter of Confirmation stating the amount of RIC awarded.
The information is then transmitted to IRAS and the credit is reflected in the company's RIC account.
The RIC can be used against:
- Corporate Income Tax;
- Domestic Top-up Tax;
- Multinational Enterprise Top-up Tax;
- associated penalties, surcharges and late-payment interest where applicable.
This makes RIC particularly relevant for multinational groups affected by Singapore's implementation of the Pillar Two / global minimum tax framework.
Does the company need to have tax payable to benefit?
No.
RIC has been deliberately designed with a refundable cash feature.
Under the current IRAS process, when submitting a RIC claim to the approving authority, a company may elect for the credit to be used against qualifying taxes or to be received in cash according to the prescribed payment schedule. The election is irrevocable for that claim.
Where credits are used for tax offset first, any remaining unutilised RIC is ultimately refundable in cash by the stipulated payment date, within the RIC's statutory payment framework.
The economic benefit is therefore not restricted to companies that expect a large Singapore corporate-income-tax bill.
How long can RIC support a project?
Each RIC award can have a qualifying period of up to 10 years.
Only qualifying expenditure incurred during the approved qualifying period can generate RIC.
The actual period will depend on the nature and duration of the investment.
This makes RIC particularly different from short-duration grants: it can potentially support a multi-year investment programme involving hiring, CAPEX and capability build-out over a sustained period.
What commitments come with a RIC award?
RIC is not awarded solely on projected expenditure.
The company commits to economic outcomes under its Letter of Award.
Current EnterpriseSG guidance identifies commitments including:
- implementation of the approved project;
- achievement of agreed investment levels;
- achievement of agreed employment levels.
The company is also required to submit annual progress updates on its performance against the award conditions. Investment and employment information may need to be externally audited by an ACRA-registered Public Accountant or audit firm.
The authorities may conduct site visits or audit checks during or after the qualifying period.
Failure to meet the conditions of the award can result in RIC being reduced, terminated or recovered.
How does the RIC claim process work?
RIC is generally managed as a multi-year incentive rather than a one-off reimbursement.
The current EnterpriseSG framework recommends one claim application per financial year.
The company submits externally audited documentation supporting the qualifying expenditure incurred. EnterpriseSG or EDB verifies the claim and issues a Letter of Confirmation stating the RIC amount. That information is transmitted to IRAS for administration through the RIC account.
A typical lifecycle is therefore:
How is RIC treated for Singapore tax purposes?
Although RIC is delivered through the tax system, Singapore's Income Tax Act treats it as a Government grant for tax-treatment purposes.
This matters when modelling the net benefit.
Where RIC subsidises qualifying expenditure, the subsidised portion is generally not also available for the corresponding tax deduction or capital allowance.
The qualifying expenditure should therefore generally be considered net of the RIC amount when calculating applicable deductions or capital allowances.
The accounting and tax treatment can also differ according to whether the supported expenditure is revenue or capital in nature.
For Finance teams, this means the correct comparison is not simply:
RIC percentage + existing tax deduction
The overall project model should consider the net incentive position after interaction with the tax treatment of the underlying expenditure.
When should a company assess RIC?
RIC needs to be considered before the investment project is commenced and before the project structure is fully locked.
The support rate, qualifying expenditure categories, qualifying period and economic commitments are determined upfront as part of the approval process.
The most useful trigger is therefore when management is considering decisions such as:
- where to locate a new manufacturing investment;
- whether to establish a new Singapore R&D centre;
- expanding an existing regional headquarters;
- moving higher-value global or regional functions into Singapore;
- establishing a Centre of Excellence;
- scaling advanced digital, AI or supply-chain capabilities;
- implementing a major Singapore decarbonisation investment.
RIC should form part of the investment-location and project-design discussion, rather than being assessed after the investment has already been committed.
How does the RIC application work?
RIC does not follow the standard Business Grants Portal process used for EDGE.
Interested companies should engage EDB or Enterprise Singapore directly to discuss the proposed investment.
A typical workstream is:
Investment screening
Assess whether the proposed project is sufficiently substantive and falls within one of the qualifying RIC activity categories.Economic-case development
Define the investment, employment, local expenditure, capabilities and strategic activities proposed for Singapore.Support-profile assessment
Consider whether the project is closer to the 10%, 30% or 50% profile based on quantitative and qualitative outcomes.Qualifying-expenditure modelling
Determine which CAPEX, manpower and other project costs could form the eligible expenditure base.Engagement with EDB / EnterpriseSG
Present the investment case and negotiate the proposed project commitments and incentive structure.Application and assessment
Submit the information required by the relevant approving authority.Letter of Award
If approved, the award establishes the support rate, qualifying expenditure, qualifying period and economic commitments.
Is RIC relevant to your project?
RIC is strongest where a company is making a material strategic investment in Singapore rather than undertaking an isolated capability project.
A strong RIC opportunity usually combines:
Examples include:
global manufacturer -> new advanced Singapore production capacity
multinational technology group -> Singapore regional R&D and product-development centre
international group -> new APAC headquarters / Centre of Excellence
digital company -> major expansion of regional technology and service capabilities
industrial company -> substantial decarbonisation investment in Singapore
A weaker case is generally a project with modest spending, limited hiring and no material change to the company's Singapore activities.
RIC vs RIS(C)
RIC and the Research, Innovation and Enterprise Scheme for Companies - RIS(C) can both support significant Singapore investments, but they are structurally different incentives.
| RIC | RIS(C) | |
|---|---|---|
| Instrument | Refundable tax credit | Grant / co-funding |
| Typical project | Major strategic investment creating substantive economic activities | R&D, innovation and capability-development projects |
| Local ownership | No requirement | Particularly relevant for companies with less than 30% local ownership |
| Support basis | Approved qualifying expenditure over potentially multi-year investment | Approved project expenditure |
| Duration | Up to 10-year qualifying period | Project-specific |
| Cash mechanics | Tax offset and refundable cash feature | Grant reimbursement |
For a large R&D or technology investment, the question should not automatically be "RIC or RIS(C)?"
The broader funding strategy should first determine which incentive best matches the investment scale, activity, expenditure profile and economic commitments.
How Reeve | R&D supports RIC projects
RIC requires a different approach from a standard grant application because the incentive is linked to the company's broader Singapore investment case.
Initial opportunity assessment
Assess whether the proposed investment falls within the RIC framework and whether its scale and economic outcomes justify engagement with EDB or EnterpriseSG.
Investment-case structuring
Define the Singapore activity, investment, employment, capability development and strategic outcomes in a way that reflects the project as a whole.
Support-rate positioning
Benchmark the project against the current 10%, 30% and 50% project profiles and identify where the case needs to be strengthened.
Qualifying-expenditure modelling
Build the potential RIC expenditure base across CAPEX, manpower and other qualifying categories.
Incentive modelling
Model the potential benefit alongside Singapore corporate tax, Pillar Two taxes, cash-refund mechanics and interaction with tax deductions or capital allowances.
Authority engagement and application support
Support the company through discussions with EDB / EnterpriseSG, application preparation, clarifications and incentive structuring.
Award and Post-Award Management
Translate the Letter of Award into operational requirements covering investment, hiring, qualifying expenditure, annual progress reporting, audited claims and eventual RIC utilisation.
Frequently asked questions
Is RIC a grant or a tax incentive?
RIC is structured as a refundable tax credit, although Singapore's Income Tax Act treats it as a Government grant for tax-treatment purposes.
Does RIC require Singaporean ownership?
No. Singapore-incorporated companies and registered Singapore branches of foreign companies can qualify.
What is the maximum RIC support rate?
Up to 50% of qualifying expenditure. Enterprise Singapore's current factsheet uses 10%, 30% and 50% project profiles.
Is there a maximum RIC dollar cap?
No fixed public monetary cap is stated. The total RIC quantum is determined by the approving authority based on the approved project and qualifying expenditure.
Can a company receive RIC even if it has little Singapore tax payable?
Yes. RIC has a refundable cash feature and the current IRAS framework permits cash payment under the prescribed election and payment mechanics.
Can RIC offset Pillar Two top-up taxes?
Yes. RIC can be used against Domestic Top-up Tax and Multinational Enterprise Top-up Tax, in addition to Corporate Income Tax.
Can another company in the group use the RIC?
Potentially. Approved nominated companies within the same group can use allocated RIC against qualifying Singapore tax liabilities, subject to approval and IRAS nomination procedures.
How long can a RIC award run?
The qualifying period can be up to 10 years.
Official sources
- Enterprise Singapore - Refundable Investment Credit: https://www.enterprisesg.gov.sg/financial-support/refundable-investment-credit
- Enterprise Singapore - RIC factsheet: https://www.enterprisesg.gov.sg/-/media/esg/files/financial-assistance/grants/for-local-companies/ric/ric-factsheet.pdf
- IRAS - Refundable Investment Credit: https://www.iras.gov.sg/schemes/disbursement-schemes/refundable-investment-credit-(ric)