11 February 2015
The Inland Revenue Authority of Singapore (IRAS) has updated its website content of the Frequently Asked Questions (FAQ) under the “What is taxable income” section.
In the updated FAQ item #1, the tax treatment of Capability Development Grant (CDG) was added.
The CDG, which is administered by Spring Singapore, provide financial incentives for business enterprises to undertake projects to upgrade their capabilities. It supports the cost of productivity improvements and capability developments that will result in greater enterprise competitiveness and business growth and aims to address SME’s current needs and stages of development through the supportable areas.
CDG granted for the following supportable areas are generally taxable as they are revenue in nature:
- Business Strategy Development
- Brand Development
- Financial Management
- Business Innovation & Design
- Enhancing Quality & Standards
- Human Capital Development
- Service Excellence
- Intellectual Property & Franchising
CDG granted for the following supportable areas are not taxable as they are capital in nature:
- Technology Innovation
- Productivity Improvements
The update was made on 26 January 2015.
For further details, please refer to the IRAS website.