AI grants for Singapore SMEs in 2026: what you can claim and how to apply
The EDGE Grant, the 400% AI tax deduction and the Enterprise Compute Initiative: what each pays for, who qualifies and the order to do things in.
Which grants can a Singapore SME use for AI in 2026?
For most small businesses: the EDGE Grant and the 400% AI tax deduction. Two larger programmes suit companies with an in-house tech team.
| Scheme | Pays for | How much | Who qualifies | How |
|---|---|---|---|---|
| EDGE GrantEnterprise Singapore | Digital and AI solutions, consultancy and growth projects | Up to 50% of eligible costs for SMEs (70% for overseas and sustainability projects), up to S$100,000 a year | Registered in Singapore, at least 30% local shareholding | Apply before you sign or pay [1][2] |
| 400% AI tax deductionIRAS (Enterprise Innovation Scheme) | AI subscriptions and licences, and AI services such as setup, consultancy and training | 400% deduction on up to S$50,000 a year, for YA 2027 and YA 2028 | A business claiming the spend against its Singapore tax | Claim it when you file your tax return [4] |
| Enterprise Compute InitiativeDigital Industry Singapore | Cloud credits and consultants to build a custom AI solution | 70% of consulting costs, up to S$105,000, plus cloud credits | 10+ staff in Singapore and an in-house tech team of 2+ | Apply online to DISG [6][11] |
| Champions of AIEnterprise Singapore and DISG | Company-wide AI transformation | Customised support | Leading companies making AI central to their business | Piloted with a few companies; no open application yet [8] |
A grant pays back part of the cost, so start with the job you want AI to do. The Be AI Ready Guide helps you choose it and get your data ready. For enquiries and follow-ups, see the Nerb AI Business Platform; for quotes, invoices and other repeat work, see AI Workflow Automation. Nerb is not on IMDA’s pre-approved list yet, so check that any vendor’s package is listed before you count on a grant.
What is the EDGE Grant, and does it cover AI?
EDGE is Enterprise Singapore’s single business grant from 30 September 2026. It replaced the Productivity Solutions Grant (PSG), the Enterprise Development Grant (EDG) and Market Readiness Assistance (MRA).[1]
- How much. Up to 50% of eligible costs for SMEs and 30% for larger firms, or 70% and 50% for internationalisation and sustainability projects. The cap is S$100,000 a year, reset each 1 April[2].
- Digital and AI solutions. Up to S$30,000 of the cap can go to single-function digital solutions, integrated enterprise systems and pre-scoped equipment[2]. Each solution type has its own cost cap too: a CRM system, for example, is capped at S$5,000 of cost, so an SME gets up to S$2,500[9]. Budget 2026 promised grant support for a wider range of AI-enabled solutions[5], and IMDA set a target of 50% of pre-approved solutions using AI, up from 30%[7], and GovInsider reported in October 2026 that 55% now do[12].
- What it pays for. For a digital solution, the software only, for up to 12 months. GST and maintenance aren’t covered, and you can’t get a grant again for a solution you already had one for[9].
- Sector grants. Other agencies that ran PSG move to EDGE in phases from November 2026[3].
How do you apply for the EDGE Grant?
Check you qualify, get a quotation, then apply before you sign or pay anything. The order matters most.
- Check you qualifyA business registered in Singapore, with at least 30% of its shares held by Singaporeans or permanent residents. BizSG checks eligibility and suggests the right EDGE activity [1][2].
- Choose the solution and get a quotationFor a digital or AI solution, pick a pre-approved vendor and solution on IMDA’s SMEs Go Digital platform, get the vendor’s quotation and build a matching package there [2][9][13].
- Apply before you sign or payApply on the Business Grants Portal with your Corppass login. Starting work or paying any deposit before you apply makes the project retrospective, and it won’t be supported. You must apply yourself: a vendor can’t apply for or manage the grant for you [2][9].
- Run the projectYou may pay after you apply and before approval; it is supported only if the application is approved [2].
- Claim once, at the endOne final claim after the project is done and fully paid. The grant is a reimbursement. Claims for digital solutions open from 1 December 2026, and for other activities from 1 January 2027 [1][2].
What is the 400% AI tax deduction?
For YA 2027 and YA 2028, a business can deduct 400% of up to S$50,000 a year of qualifying AI spending, under the Enterprise Innovation Scheme.[4] Each YA taxes the financial year before it, so this covers spending in financial years ending in 2026 and 2027[10].
- What counts. Subscriptions to and licences of an AI system, and AI services that help you develop, deploy, run or maintain one: an online platform, development, consultancy and strategy, data and analytics, research, engineering and compliance, and training[4].
- Mixed tools. If a subscription bundles AI features with ordinary software, only the AI part counts. Split the cost on a reasonable basis, such as the price difference from the same plan without AI, and keep the workings[4].
- What doesn’t. Hardware and physical infrastructure, such as servers, storage and computers. There is no cash payout option for AI spending[4].
- Above S$50,000. The rest keeps the normal 100% deduction. The cap applies to each YA and can’t be carried across years[4].
- How to claim. Companies claim in their tax return. Sole proprietors and partners use IRAS’s “Submit EIS Enhanced Deduction/ Allowance Records” service after filing, before the filing due date. Keep records of the spending[4].
| Example | Normal deduction | With the AI deduction |
|---|---|---|
| Amount deducted | S$20,000 | S$80,000 |
| Extra deduction | None | S$60,000 |
| Extra tax saved | None | About S$5,100 for most small companies, up to S$10,200 at the full 17% rate |
The saving depends on your profit and tax position. Check with your tax adviser first.
Can you combine a grant and the tax deduction?
Yes, on the part you pay yourself. The 400% deduction excludes any spending covered by a government grant[4]. If EDGE covers half of a S$20,000 project, the AI deduction applies to your S$10,000.
Is the Enterprise Compute Initiative right for a small business?
Usually not. It is for companies building their own AI solution, with at least 10 staff in Singapore, a tech team of two or more, a CEO-level sponsor and past experience building a custom AI solution[6].
Those that qualify get cloud credits, tools and training from one of the cloud providers in the programme (Google Cloud, Microsoft, Amazon Web Services or Oracle), and consultants to build a first working version: DISG pays 70% of up to S$150,000 of consulting, so at most S$105,000[6][11]. You apply online to DISG with your Corppass login and latest audited accounts. DISG calls the ECI a short-term programme, so check it is still open[6]. Champions of AI, launched on 2 March 2026, is a separate programme for leading companies making AI central to the whole business; it starts as a pilot with a few companies[8].
What stops a grant claim being paid?
Paying too early is the big one. Each is easy to avoid.
- Paying a deposit before applying. Any work or payment before you apply makes the project retrospective, and it can’t be supported.
- Splitting the claim. EDGE takes one final claim, after everything is paid.
- Counting the grant twice. The tax deduction is worked out on what you paid after the grant.
- Claiming hardware as AI spend. Servers, storage and computers don’t count for the 400% deduction.
- Missing the ownership rule. Below 30% local shareholding, EDGE isn’t open to you, and you must still meet it when you claim.
AI grants in Singapore: questions, answered
Is the Productivity Solutions Grant (PSG) still available?
Not from Enterprise Singapore. PSG, EDG and MRA closed on 29 September 2026; the EDGE Grant replaced them from 30 September 2026. Applications sent before then are assessed under the old rules. Other agencies’ PSG moves to EDGE in phases from November 2026.
How much can an SME get from the EDGE Grant?
Up to S$100,000 a year across all activities, counted from 1 April to 31 March. Up to S$30,000 of that can go to single-function digital solutions, integrated enterprise systems and pre-scoped equipment, and each solution type has its own cost cap. Support is up to 50% of eligible costs for SMEs, or 70% for internationalisation and sustainability projects.
Can I apply after paying a deposit?
No. If you start work or pay a supplier anything before you submit, Enterprise Singapore treats the project as retrospective and won’t support it. You can pay after you submit, before approval, but it is supported only if approved.
Does a subscription to an AI tool count for the 400% deduction?
It can. IRAS counts subscriptions to and licences of an AI system, and AI services such as setup, consultancy, data work and training, for YA 2027 and YA 2028. If the tool mixes AI and ordinary features, only the AI part counts. Hardware and servers don’t count, and there is no cash payout. Check with your tax adviser.
Who can apply for the EDGE Grant?
A business registered in Singapore with at least 30% of its shares held by Singaporeans or permanent residents. Non-profits, societies, religious bodies and government entities can’t apply. You count as an SME with group sales of up to S$100 million or up to 200 workers.
What is SMEs Go Digital, and where do I find pre-approved AI solutions?
SMEs Go Digital is IMDA’s programme, launched in April 2017, to make going digital simple for SMEs. It offers Industry Digital Plans for each sector, CTO-as-a-Service for a digital readiness check and advice, and a list of pre-approved solutions. PSG used to fund those solutions; since 30 September 2026 you choose a pre-approved vendor on the SMEs Go Digital platform and apply for the EDGE Grant. IMDA said in October 2026 that 55% of the pre-approved solutions are AI-enabled.
Planning an AI project?
Tell us the job you want AI to do. We’ll scope it and give you a fixed written quote. Check the scheme’s rules before you sign or pay.
Sources
- Enterprise Singapore, EDGE Grant. www.enterprisesg.gov.sg/financial-support/edge-grant
- Enterprise Singapore, EDGE Grant FAQ. www.enterprisesg.gov.sg/resources/all-faqs/edge-grant
- GoBusiness, EDGE Grant and Productivity Solutions Grant FAQ. grants.gobusiness.gov.sg/faq/psg
- IRAS, e-Tax Guide: Enterprise Innovation Scheme, third edition (31 August 2026). www.iras.gov.sg/media/docs/default-source/e-tax/etaxguide_cit_enterprise-innovation-scheme.pdf
- Singapore Budget 2026, Harness AI as a strategic advantage. www.singaporebudget.gov.sg/budget-speech/budget-statement/c-harness-ai-as-a-strategic-advantage
- Digital Industry Singapore, Enterprise Compute Initiative: programme details. www.disg.gov.sg/eci/enterprise-compute-initiative/
- MDDI, National AI Impact Programme factsheet (2 March 2026). www.mddi.gov.sg/newsroom/national-ai-impact-programme--empowering-enterprises-and-workers-to-transform-with-ai/
- Enterprise Singapore, Champions of AI programme (2 March 2026). www.enterprisesg.gov.sg/resources/media-centre/media-releases/2026/march/mr00926_champions-of-ai-programme
- Enterprise Singapore, EDGE Grant: Customer Relationship Management (an example digital solution). www.enterprisesg.gov.sg/financial-support/edge-grant/automation-and-digitalisation/single-function-solutions/customer-relationship-management
- IRAS, Basic guide to corporate income tax for companies. www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/basic-guide-to-corporate-income-tax-for-companies
- Digital Industry Singapore, Enterprise Compute Initiative: cloud service providers. www.disg.gov.sg/eci/cloud-service-providers/
- GovInsider, “IMDA’s new industry partnerships to strengthen SMEs’ data foundations and AI use in workflows” (13 October 2026). govinsider.asia/intl-en/article/imdas-new-industry-partnerships-to-strengthen-smes-data-foundations-and-use-ai-in-workflows
- IMDA, Helping SMEs go digital: SMEs Go Digital factsheet (4 March 2022). www.imda.gov.sg/-/media/imda/files/programme/smes-go-digital/smesgd-factsheet.pdf
Checked against each official page on 23 October 2026. Schemes change, usually at each Budget; we update this guide when they do. This is a summary, not legal, tax or grant advice.