Why Refundable Investment Credit (RIC) Matters
Introduced in Budget 2024, the Refundable Investment Credit (RIC) is designed to boost strategic investments in Singapore across areas like R&D, digital services, sustainability, headquarters operations, and supply chain expansion
It offers support of up to 50% on qualifying expenditures, including capital, manpower, training, professional fees, IP and logistics costs
Crucially, unused credits are refundable in cash within four years, making RIC highly attractive—especially for companies with limited taxable profit at early stages.
Which Industries Can Apply for the RIC?
One of the obvious questions would be to ask, which industry can apply for the RIC? Here is a list of these industries (Not a definite list, applications are ultimately subject to IRAS approval.)
| Industry | Sectors |
| Advanced Manufacturing | Precision engineering Semiconductors and electronics Robotics and automation Additive manufacturing (3D printing) |
| Digital & ICT | Artificial Intelligence (AI) Cybersecurity Cloud computing and data centers Fintech and blockchain |
| Research & Development (R&D) and Innovation | Biomedical sciences Life sciences and pharmaceutical tech Materials science |
| Sustainability & Green Economy | Clean energy technologies (solar, hydrogen, etc.) Carbon capture & storage Circular economy and recycling innovations Electric vehicle (EV) tech and infrastructure |
| Supply Chain Management & Logistics | Smart warehousing and logistics Cold chain innovation Regional headquarters managing regional supply chains |
| Corporate Headquarters & Global Trading | HQs managing regional/global operations Businesses establishing treasury, HR, and legal hubs in Singapore |
| Professional Services | HQs managing regional/global operations Businesses establishing treasury, HR, and legal hubs in Singapore |
🤝 Other Schemes That Can Be Used Alongside RIC
While RIC is typically awarded for specific qualifying projects, businesses may also benefit from other IRAS or EDB-managed schemes, provided they do not overlap in claiming on the same expenditure:
1. Enterprise Innovation Scheme (EIS)
- Offers up to 400% tax deductions for R&D, IP registration, training, innovation initiatives—up to specified caps per Year of Assessment
2. Double Tax Deduction for Internationalisation (DTDi)
- Companies planning to expand overseas can enjoy a double tax deduction on qualifying expenses incurred from 1 Apr 2012 to 31 Dec 2030
- Provides 200% deduction on qualifying international expansion costs (e.g. overseas marketing, trade fairs)
3. Other Incentives
Depending on the company’s activities, it may also consider:
- Startup Tax Exemption Scheme (SUTE) for newly incorporated entities
From 2020 onwards, there will be 75% exemption on the first $100,000 of normal chargeable income*
; and a further 50% exemption on the next $100,000 of normal chargeable income*.
- Development & Expansion Incentive (DEI) or Pioneer Certificate Incentive (PC) for large-scale investment projects
Looking for Help to Apply for the RIC?
Looking to tap into the Refundable Investment Credit (RIC) scheme? Plutus can help.
Our experienced consultants simplify the application process—from identifying eligible investments to preparing documentation for EDB approval.
With Plutus by your side, you can maximise your refundable credits while staying fully compliant. Let us support your strategic growth with confidence.
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