Question 1

What is the EIS 400% tax deduction for AI in Singapore?

Accepted Answer

The Enterprise Innovation Scheme (EIS) allows Singapore businesses to claim a 400% tax deduction on up to S$50,000 of qualifying AI expenditure per Year of Assessment (YA 2025-2028). This means for every S$1 spent on qualifying AI tools, you can deduct S$4 from your taxable income, resulting in significant tax savings.

Question 2

What is the Productivity Solutions Grant (PSG) for AI tools?

Accepted Answer

The PSG is a Singapore government grant that provides up to 50% funding support for SMEs adopting pre-approved IT solutions, including AI tools for HR, accounting, and customer support. Eligible businesses must be registered in Singapore with at least 30% local shareholding.

Question 3

Can I claim both PSG and EIS for the same AI tool?

Accepted Answer

Yes, you can stack both grants. Use the PSG to get 50% funding for a pre-approved AI solution, then claim the EIS 400% tax deduction on your remaining out-of-pocket expense. This combination can reduce the effective cost of AI adoption by up to 80%.

Question 4

Which AI tools are PSG-approved in Singapore for 2026?

Accepted Answer

PSG-approved AI tools include solutions for HR/Payroll (QuickHR, JustLogin, Talenox), Accounting (Xero, AutoCount, Volopay), and Customer Support (Zendesk, Freshdesk, Tidio). The full list is available on the GoBusiness Gov Assist portal and SGAI Finder directory.

Question 5

How do I apply for the PSG grant for AI tools in Singapore?

Accepted Answer

To apply for PSG: 1) Select a pre-approved AI solution from GoBusiness. 2) Get a quotation from the vendor. 3) Submit your application via the Business Grants Portal (BGP) using Corppass before making any payment. 4) Await the Letter of Offer. 5) Implement the solution and submit your claim.

Question 6

What are the best AI solutions for businesses in Jurong East Singapore?

Accepted Answer

Businesses in Jurong East and across Singapore can access PSG-approved AI solutions for accounting (Xero, Volopay), HR (QuickHR, JustLogin), and customer support (Zendesk, Freshdesk). These tools qualify for up to 50% PSG funding and 400% EIS tax deductions.

Question 7

How much can my Singapore SME save with AI grants in 2026?

Accepted Answer

A typical Singapore SME spending S$20,000 on AI tools can save up to S$10,000 via PSG (50% funding) plus S$6,800 in EIS tax savings (400% deduction on remaining S$10,000 at 17% tax rate), for a total savings of S$16,800 — reducing the effective cost to just S$3,200.

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