Singapore: Penalties | Research Credit Integrity Alliance

This page sets out the penalties that can apply to an incorrect research and development (R&D) deduction claim or a false Enterprise Innovation Scheme (EIS) cash payout election in Singapore, both for the claimant and for anyone who assists. It describes the rules only and makes no recommendation.

Summary

Singapore's tax penalties are set by the Income Tax Act 1947 as offences. Most are framed so that a penalty is a multiple of the tax undercharged or of the cash payout wrongly obtained, with a fine or imprisonment in the more serious cases.12 Several offences extend expressly to a person who acts to assist another person.23

Incorrect returns and claims for deductions

Section	Conduct	Penalty on conviction
95(1)	Making an incorrect return, or giving incorrect information affecting the person's own tax or another person's tax	A penalty equal to the tax undercharged1
95(2)	The same, without reasonable excuse or through negligence	A penalty of double the tax undercharged, and liability to a fine of up to S$5,000 or imprisonment of up to 3 years, or both1
96(1)	Willfully, with intent to evade tax or to assist any other person to evade tax, making a false statement or giving a false answer	A penalty of treble the tax undercharged, and liability to a fine of up to S$10,000 or imprisonment of up to 3 years, or both3
96A(1)	With the same intent, preparing false books or records, or using "any fraud, art or contrivance"	A penalty of 4 times the tax undercharged, and liability to a fine of up to S$50,000 or imprisonment of up to 5 years, or both3

An individual convicted of repeated offences under these sections, or of a combination of them, faces a minimum term of imprisonment of six months.3 Where a false statement is proved to have been made in a return "by or on behalf of any person", that person is presumed to have made it with intent to evade tax unless the contrary is proved.3 The Comptroller may compound offences under sections 95, 96 and 96A.13

IRAS summarizes these as penalties of up to 200 percent of the tax undercharged where there is no intention to evade, and up to 400 percent where there is.4

False information for an EIS cash payout

Section 37S applies the same structure to information given in an EIS cash payout election, with the penalty measured against the payout:2

Section	Conduct	Penalty on conviction
37S(1)	Giving false information, or omitting a material particular, in the election	A penalty equal to the payout made or that would have been made
37S(2)	The same, without reasonable excuse or through negligence	Double the payout, and liability to a fine of up to S$5,000 or imprisonment of up to 3 years, or both
37S(3)	Willfully, with intent to obtain "or to assist another person to obtain" a payout not due, giving false information or a false answer	Treble the payout, and liability to a fine of up to S$10,000 or imprisonment of up to 3 years, or both
37S(4)	With the same intent, keeping false records or using "any fraud, art or contrivance"	4 times the payout, and liability to a fine of up to S$50,000 or imprisonment of up to 5 years, or both

The penalty excludes any part of the payout to which the person was entitled.2 The Comptroller may compound any offence under section 37S other than the most serious one in subsection (4).2 Separately from any penalty, a payout that should not have been made is recoverable as a debt due to the Government.5

IRAS's EIS page states that it is also an offence to claim enhanced deductions on expenditure that has already been elected for cash conversion.6

People who assist

The Act does not limit these offences to the claimant. Sections 96, 96A and 37S(3) and (4) apply to anyone who acts with intent to help another person evade tax or obtain a payout not due.23 Section 95 covers incorrect information affecting "the liability of any other person".1

For the former Productivity and Innovation Credit (PIC) scheme, section 37L created a specific offence of promoting an abusive PIC arrangement, with a fine of up to S$10,000 or imprisonment of up to three years, or both.7 No equivalent promoter offence for the EIS appears in the Act.8

IRAS states that it will impose heavy penalties "for assisting others to defraud the Government or citizens".9 Its news releases on PIC cases report court sentences that included imprisonment for people who organized false claims for others: seven months' imprisonment and a penalty of three to four times the payouts in a case reported in 2018, and fourteen months' imprisonment and a penalty of four times the payouts in a case reported in 2020.1011

How IRAS decides the penalty

Where there is no evidence of intent to evade, IRAS considers the taxpayer's individual circumstances.4 It lists, among possible indicators of negligence, that the taxpayer "has received prior information from IRAS or advice from its tax agents informing it of the correct tax treatment". A bad compliance history and lack of cooperation during an audit are aggravating factors, and a commitment to future compliance, such as "engaging suitably qualified persons to prepare their accounts", is a mitigating factor.4

Reduced penalties for voluntary disclosure

Penalties are reduced or waived where a taxpayer makes a qualifying voluntary disclosure before IRAS raises a query or starts an audit. No penalty is imposed for a qualifying disclosure within one year of the statutory filing deadline. After that, the penalty is 5 percent of the tax undercharged, or of the excess cash payout, for each year the error was late in being rectified.12 Taxpayers who voluntarily disclose past actions involving willful intent may have their offences compounded at a reduced penalty rate of 200 percent instead of being prosecuted.12 See Voluntary disclosure programme.

Sources

Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 95(1) to (3). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr95- (accessed 11 October 2026). Back
Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37S(1) to (9). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37S- (accessed 11 October 2026). Back
Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), sections 96(1) to (4) and 96A(1) to (4). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr96- and https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr96A- (accessed 11 October 2026). Back
Inland Revenue Authority of Singapore, Penalties for Errors in Tax Returns (last updated 2 March 2023), sections "Penalties for Errors in Tax Returns" and "Consideration of 'Individual Circumstances'". https://www.iras.gov.sg/taxes/corporate-income-tax/form-c-s-form-c-s-(lite)-form-c-filing/penalties-for-errors-in-tax-returns (accessed 11 October 2026). Back
Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37R(30). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37R- (accessed 11 October 2026). Back
Inland Revenue Authority of Singapore, Enterprise Innovation Scheme (EIS) (last updated 23 September 2026), section "How to Apply for the EIS Cash Payout". https://www.iras.gov.sg/schemes/disbursement-schemes/enterprise-innovation-scheme-(eis) (accessed 11 October 2026). Back
Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), section 37L(1) and (2). https://sso.agc.gov.sg/Act/ITA1947?ProvIds=pr37L- (accessed 11 October 2026). Back
Attorney-General's Chambers, Income Tax Act 1947 (Singapore Statutes Online, current version), table of contents, Parts 9 and 20. https://sso.agc.gov.sg/Act/ITA1947 (accessed 11 October 2026). Back
Inland Revenue Authority of Singapore, Partnership with tax agents (last updated 27 March 2026), section "Consequences of non-compliance by tax agents". https://www.iras.gov.sg/who-we-are/what-we-do/public-engagement/partnership-with-tax-agents (accessed 11 October 2026). Back
Inland Revenue Authority of Singapore, news release on the conviction of a promoter of fraudulent PIC claims (12 February 2018). IRAS news release, 12 February 2018 (accessed 11 October 2026). Back
Inland Revenue Authority of Singapore, news release on a sentence of 14 months' imprisonment for a promoter of fraudulent PIC claims (8 January 2020). IRAS news release, 8 January 2020 (accessed 11 October 2026). Back
Inland Revenue Authority of Singapore, IRAS e-Tax Guide: IRAS' Voluntary Disclosure Programme (Thirteenth Edition, published 30 January 2026), paragraphs 2.1, 2.2, 4.1, 4.2, 9.2 and 9.3. https://www.iras.gov.sg/docs/default-source/e-tax/etaxguides_iras-voluntary-disclosure-programme.pdf?sfvrsn=7eac3cc6_37 (accessed 11 October 2026). Back