Development and Expansion Incentive (DEI) for Manufacturing

Who qualifies

• Must be registered in Singapore.
• The entity must be registered and operating in Singapore and meet EDB’s DEI manufacturing-activity, employment, and fixed-asset-investment conditions.
• For the 5% rate: incur additional Fixed Asset Investment of at least S$13 million and employ at least 30 additional Skilled Employees based in Singapore by Year 5.
• For the 10% rate: additional Fixed Asset Investment of at least S$7 million and at least 20 additional Skilled Employees by Year 5.
• For the 15% rate: additional Fixed Asset Investment of at least S$5 million and at least 13 additional Skilled Employees by Year 5.
• Additional FAI and employment are measured against the entity’s last Financial Year as recorded in the Core Form and Supplementary Form respectively; FAI excludes land and is net of asset sales or disposals.
• Skilled Employees are Managers, Professionals, Associate Professionals and Technicians, or Skilled Production Craftsmen; based in Singapore means the employee is a Singapore tax resident.
• The entity must maintain a separate account for non-qualifying activity and submit an annual progress update in the prescribed format and/or an external auditor’s report.
• Not eligible if the entity falls within Singapore Government sanctions lists, engages in illegal activities, regulated military goods or tobacco, is under investigation for regulatory breaches, is a MAS-licensed financial institution, or is an MPA-regulated shipping entity, unless specifically referred by MAS or MPA.

What it funds

• Core capabilities — strategy, HR, finance, branding, processes

Concessionary tax rate of 5%, 10% or 15% on qualifying income in excess of base income; base income is the average qualifying-activity income of the 36 months immediately preceding the incentive and is taxed at the prevailing corporate rate.

Payment: Delivered as a tax deduction, allowance or credit.

How to apply

Submit a formal application to EDB containing the Core Form and Supplementary Form.

1. Prepare the Core Form with projected incremental employment, fixed-asset investment, and total business expenditure.
2. Prepare the Supplementary Form with products to be manufactured and skilled employment.
3. Submit the formal application to EDB.

Documents

• Core Form
• Supplementary Form

Contact: https://www.edb.gov.sg/en/contact-us

Application window: Qualifying period stated in the factsheet is five years. No closing date stated.