Singapore Budget 2026 Is Paying You to Automate Your Business. Here Is How to Claim It.
If you have been thinking about adopting an AI-powered tool to automate your follow-ups, manage your leads, or streamline your client communications, Singapore's Budget 2026 just made it significantly cheaper to do so.
Under the enhanced Enterprise Innovation Scheme (EIS), the government has added qualifying AI expenditure as a new deductible category. That means businesses can now claim a 400% tax deduction on up to S$50,000 of qualifying AI-related spend per year, for YA 2027 and YA 2028. On a S$50,000 spend, that is a S$200,000 deduction off your taxable income.
This is not a vague promise buried in policy documents. It is a concrete, time-limited incentive that rewards businesses that move now.
Here is everything you need to know about what qualifies, how the numbers work, and how Amply360 fits in.
What is the Enterprise Innovation Scheme, and what changed in Budget 2026?
The EIS is Singapore's flagship tax incentive for businesses that invest in innovation, capability development, and digitalisation. Before Budget 2026, the scheme covered five qualifying activities: R&D, IP registration, IP acquisition and licensing, eligible SkillsFuture training, and innovation projects with partner institutions. Each category offered a 400% tax deduction on qualifying expenditure.
Budget 2026 added a sixth: qualifying AI expenditure.
What changed under Budget 2026:
400% tax deduction on qualifying AI expenditure
Annual cap of S$50,000 per Year of Assessment
Applicable for YA 2027 and YA 2028
Available to companies, partnerships, sole proprietorships, and Singapore branches of foreign companies
No cash payout option for this category (the deduction is for profitable businesses with taxable income)
On maximum qualifying spend of S$50,000, the deduction comes to S$200,000 off your taxable income. At Singapore's 17% corporate tax rate, that translates to up to S$34,000 in potential tax savings per year.
IRAS has confirmed it will release detailed guidance on the exact scope of qualifying AI expenditure by mid-2026. Until then, the broad categories that are expected to qualify include: AI software implementation costs, vendor fees for AI-related business transformation, AI adoption training for staff, and related project documentation.
This post is for general information only and does not constitute tax advice. Always verify your specific situation with a qualified tax advisor or accountant before making EIS claims.
What counts as qualifying AI expenditure?
IRAS's detailed criteria are still being finalised. Based on publicly available Budget 2026 announcements and industry guidance, here is what is expected to count and what is not.
The critical distinction is: is this expenditure specifically tied to AI adoption in a way that is documented, structured, and measurable? A well-scoped implementation project with clear outcomes, vendor invoices, and evidence of deployment is a much stronger position than a simple recurring subscription with no project context around it.
Bottom line: how you structure and document the spend matters as much as the spend itself.
Where Amply360 fits in
Amply360 is an AI-powered marketing automation and CRM platform. It handles the things that drain time without driving revenue: follow-up sequences, lead nurturing, appointment booking, email automation, and pipeline management. All from one place, running in the background while you focus on your clients.
Here is what that means in the context of EIS:
The implementation is where the EIS opportunity is.
Setting up Amply360 for your business is not a five-minute product install. It involves mapping your lead journey, building automation workflows, configuring follow-up sequences, and integrating your booking and communication tools. That setup work, done by a professional or with structured support, is the kind of AI adoption expenditure that EIS is designed to incentivise.
Training your team counts too.
If your staff need training to use Amply360 effectively, that training cost can also qualify under EIS's existing training category (which has a separate, higher cap of S$400,000 per year). You do not need to choose one or the other; they are separate qualifying categories.
The automation runs. The deduction follows.
When the system is built properly, your leads get followed up automatically. Your bookings confirm without anyone touching them. Your email sequences go out whether you are at your desk or not. The government is now offering a meaningful tax benefit for getting that infrastructure in place. The window is YA 2027 and YA 2028, which means expenses incurred during your financial year 2026 are the ones to plan around.
Example: How the numbers could work
Qualifying AI implementation spend: S$30,000
Enhanced deduction at 400%: S$120,000
Tax saving at 17% corporate rate: approximately S$20,400
Note: This is an illustration only. Actual qualifying expenditure and deductions depend on IRAS guidance, your specific circumstances, and advice from your accountant.
What you need to do to claim this
Start now, not at year-end. EIS claims are based on expenditure incurred during the financial year, and the documentation must be contemporaneous. That means project scoping, invoices, and evidence of deployment need to be in order from the beginning of the project, not assembled retrospectively.
Here is the short version of what to have ready:
Vendor invoices that specify the AI-related components of the work
Categorised accounting records that separate qualifying AI spend from routine IT costs
No pre-approval is required to claim EIS. You include the claim in your Form C or Form C-S at tax filing. But the quality of your documentation is what determines whether the claim holds up.
This window does not stay open
The EIS AI deduction applies only for YA 2027 and YA 2028. Expenses incurred in your financial year 2026 qualify for YA 2027. That means the time to plan and implement is now, not after your books close.
The businesses that benefit most from this are not the ones who scramble at year-end. They are the ones who made the decision early, got the implementation done properly, and have the paperwork to show for it.
If you have been sitting on the fence about bringing your follow-up and client communication onto a proper automated system, this incentive removes one of the biggest objections: cost.
Ready to start? Here are your two next steps.
Amply360 has a 14-day free trial. No developer needed. No agency. You can set up your first automation workflow in an afternoon and see exactly what the platform does for your business before committing to anything.
Frequently asked questions
Do I need to apply to IRAS before spending?
No prior approval is needed to claim EIS. You include the claim at tax filing. But documentation must be in place from when the expenditure is incurred, not retrospectively assembled.
Can I claim both the AI expenditure category and the training category?
Yes. These are separate qualifying categories with separate caps. If you incur staff training costs related to using AI tools, those may qualify under the training category (up to S$400,000 cap) independently of your AI expenditure claim (up to S$50,000 cap).
What if my business is not yet profitable?
The AI expenditure category under EIS does not offer a cash payout option. If your business is loss-making, the deduction reduces future taxable income when you become profitable. Other EIS categories do offer cash payout options for qualifying SMEs, so check with your accountant on what applies to your situation.
When does this incentive expire?
The AI expenditure deduction applies for YA 2027 and YA 2028 only. For most businesses with a December financial year-end, that means expenses incurred in 2026 are what you are planning around.
This article is for general information only and does not constitute tax, legal, or financial advice. Qualifying expenditure under the EIS is subject to IRAS guidance expected by mid-2026. Always consult a qualified tax advisor before making EIS claims.
