SME proposal · EIS alternative
A smaller AI project, with tax clarity.
GetSGPR alternative · retain existing systems and add a bounded internal AI workflow. EIS is a tax deduction on qualifying spend, evaluated separately from operating value.
The operating loop
- 01RetainExisting CRM, portal and case ownership
- 02AddSource-linked internal drafting/checklist
- 03ControlHuman review and scoped enquiry handover
- 04AccountActual AI allocation and usable deduction
Buy a small useful workflow; let the accountant assess the actual tax position.
The smallest viable alternative
One protected internal checklist/briefing workflow, approved public service knowledge, staff handover and role training. Keep existing records authoritative. Remove portal replacement, migration across the whole business, general-purpose agents and unnecessary media tools.
| Deliverable | Acceptance |
|---|---|
| Approved service facts and enquiry boundary | No personalised eligibility promises or sensitive-document collection over the public number. |
| Source-linked internal draft | Critical facts cite the authorised source/version and remain editable. |
| Role/tenant controls and processing terms | Permissions and external model processing are disclosed and tested. |
| Human review and staff competency | Consultant validates substance; operator owns next action. |
| Weekly pilot report | Handling/rework, actual use, cost and productive realisation reconcile. |
Itemise the actual AI work
| Revised planning cost | Amount | EIS classification for illustration |
|---|---|---|
| AI-specific workflow implementation | S$8,000 | Candidate qualifying AI service. |
| AI system access, 12 months | S$4,800 | Candidate qualifying AI system. |
| AI-specific operating training | S$1,200 | Candidate qualifying AI service. |
| Support / usage allowances | S$1,800 / S$1,200 | Excluded from conservative tax basis pending actual nature/invoices. |
| Full first-year supplier payment | S$17,000 | No grant or upfront tax discount assumed. |
| Conservative candidate AI basis | S$14,000 | Actual eligibility and basis period decided by accountant. |
| Recurring annual cost | S$7,800 | S$4,800 + S$1,800 + S$1,200, before GST. |
This revises the prior S$24,000 alternative by removing general website work and reducing recurring scope. It is a planning variation, not a confirmed price. IRAS can include certain AI deployment/maintenance/training services; the conservative exclusions are unresolved allocation, not a statement that they can never qualify.
Source: IRAS EIS ↗
Operating value first
Illustrative realisation: ten actually paid overtime hours/month avoided at S$35 = S$4,200/year; six additional completed cases/month at S$200 contribution = S$14,400/year. Total S$18,600, only if paid overtime and spare demand/capacity are evidenced. Do not add the capacity valuation of those same hours again.
Planning assumptions in S$. Edit them to test the business case. Benefit means avoided expenditure plus incremental contribution, after new client-side supervision/rework costs. Capacity is reported separately.
This operating model is self-funded. Use the separate EIS calculator for the tax illustration.
How the calculation works
Cost = one-off cost + annual cost × horizon. Benefit = annual benefit × horizon. Grant = selected rate × assessed basis, limited by the activity ceiling where stated and never more than project cost. Horizon surplus = benefit − cost + conditional grant.
Steady-state payback = one-off cost ÷ monthly recurring surplus, without the grant. This compares operating value; it is not a cash-flow schedule for annual prepayment. The SME must finance the full first-year cost until any reimbursement. Payback excludes application/delivery delays, tax and financing. GST and any unpriced costs must be added to the real budget. No approved cost basis or award is established by this calculator.
At S$10,000 recurring benefit, the service covers renewal but the S$9,200 implementation takes about 50 months to recover. That may still fail the buyer’s payback limit. A tax illustration should not hide the operating result.
Explore the tax effect
Formula: ordinary basis + 3 × min(net qualifying basis, S$50,000). Current tax effect uses the entered profit ceiling; later loss utilisation, exemptions, rebates and timing are excluded. The company illustration does not establish CyberG7 LLP partner tax treatment. The supplier still receives the full payment.
Source: IRAS EIS ↗ · IRAS corporate tax basics ↗
When this route makes sense
- The small AI workflow has a positive business case at the actual price and can be operated by the existing team.
- The company/accountant can classify the AI expenses, confirm YA 2027/2028 basis-period treatment and evidence use in the trade.
- Invoices identify actual AI systems/services; subsidised portions and unrelated items are excluded from the enhanced basis.
- The buyer accepts the full supplier payment and understands a loss-making company may have no immediate tax saving.
- The pilot starts under a clear self-funded decision and is not later relabelled as the same retrospective EDGE project.
This is an alternative to the full GetSGPR transformation, not an additional claim on its same costs.