Singapore implemented a new tax incentive scheme to encourage companies to adopt design innovation on Tuesday.

The tax scheme, entitled "Productivity and Innovation Credit for Investments in Design," provides significant tax deductions for investments in a broad range of activities along the innovation value chain, including design.

The scheme aims to encourage pervasive and continuous design innovation in companies in Singapore.

The tax incentive will be available for five years, from the years of assessment 2011 to 2015.

Companies can enjoy a deduction of up to 250 percent of their total income, capped at 300,000 Singapore dollars (214,285 U.S dollars) for each assessment year.

To qualify for the scheme, the design project must be related to industrial and product design activities and result in the final design of a physical product.

(Source: Xinhua)