Refundable Investment Credit Scheme
The Refundable Investment Credit (RIC) scheme aims to boost Singapore’s investment appeal by incentivizing substantial investments that contribute to the nation’s economic growth. This initiative targets key sectors and emerging industries, offering credits upon approval facilitated by EDB and EnterpriseSG.
Key Economic Endeavours Supported by RIC
- Investment in new productive assets such as low-carbon energy production;
- Expanding digital services, professional services, and supply chain management operations;
- Establishing or broadening headquarter functions and Centres of Excellence;
- Initiating or expanding activities by commodity trading firms;
- Conducting research and innovation initiatives; and
- Deploying decarbonization-focused solutions.
How the scheme works
The RIC is granted based on eligible expenses incurred by the company for a qualifying project within a specified timeframe of up to 10 years. These credits are intended to offset Corporate Income Tax liabilities, with any unused credits refunded to the company within four years of meeting eligibility criteria. The scheme aligns with Global Anti-Base Erosion Rules for Qualified Refundable Tax Credits.
The amount of RIC a company receives hinges on predetermined support rates for different categories of qualifying expenditures. These rates correlate with the anticipated economic or decarbonization benefits the project will yield.
Qualifying Expenditure Categories
- Capital outlay such as building, infrastructure, equipment, and software;
- Manpower expenses;
- Training expenditures;
- Professional service fees;
- Intangible asset investments;
- Outsourced work fees in Singapore;
- Materials and supplies; and
- Freight and transportation charges.
Companies may qualify for up to 50% support on each expenditure category, with the overall RIC amount determined by EDB or EnterpriseSG. Additional details will be available on EDB and EnterpriseSG websites by 3Q 2024.
