Writing‑down allowances for intellectual property rights
19B.—(1)  Subject to this section, where a company carrying on a trade or business has incurred on or after 1 November 2003 capital expenditure in acquiring any intellectual property rights for use in that trade or business and the acquisition date of those rights is on or before the last day of the basis period relating to the year of assessment 2016, writing‑down allowances in respect of that expenditure must be made to it during a writing‑down period of 5 years beginning with the year of assessment relating to the basis period in which that expenditure is incurred.
[34/2016]
(1A)  Where a company carrying on a trade or business incurs during the basis period for the year of assessment 2011 or the year of assessment 2012 capital expenditure in acquiring one or more intellectual property rights for use in its trade or business, there is, in addition to the writing‑down allowance under subsection (1), to be made in respect of all its trades and businesses a writing‑down allowance computed in accordance with the formula
where A is —
(a)for the year of assessment 2011, the lower of the following:
(i)such capital expenditure incurred during the basis period for that year of assessment;
(ii)$800,000; and
(b)for the year of assessment 2012, the lower of the following:
(i)such capital expenditure incurred during the basis period for that year of assessment;
(ii)the balance after deducting from $800,000 the lower of the amounts specified in paragraph (a)(i) and (ii).
(1AA)  Where —
(a)a company carrying on a trade or business has incurred capital expenditure in acquiring any intellectual property rights for use in that trade or business; and
(b)the acquisition date of those rights is on or after the first day of the basis period relating to the year of assessment 2017,
writing‑down allowances in respect of that expenditure must be made to it during a writing‑down period of 5 years, 10 years or 15 years (as elected by the company) beginning with the year of assessment relating to the basis period in which that expenditure is incurred.
[34/2016]
(1AB)  The company mentioned in subsection (1AA) must make an irrevocable election to the Comptroller for the writing‑down allowances to be made to it over a writing‑down period of 5 years, 10 years or 15 years.
[34/2016]
(1AC)  The election under subsection (1AB) must be made at the time of lodgment of the company’s return of income for the year of assessment relating to —
(a)if the payment for the intellectual property rights is made by instalments, the basis period in which the first of any deposit or instalment payment for those rights is made; or
(b)in any other case, the basis period in which the expenditure is incurred.
[34/2016]
(1AD)  Where a company —
(a)that is a qualifying company for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive); and
(b)that carries on a trade or business during the basis period for that year of assessment,
incurs during the basis period capital expenditure in acquiring one or more intellectual property rights for use in its trade or business, there is to be made, in addition to the writing-down allowance under subsection (1AA), a writing-down allowance computed in accordance with the formula
where A is the lower of the following:
(a)the capital expenditure incurred during the basis period for that year of assessment;
(b)$400,000.
[Act 30 of 2023 wef 30/10/2023]
(1AE)  The writing-down allowance under subsection (1AD) is to be made to the qualifying company during the writing-down period elected under subsection (1AA) for the same expenditure.
[Act 30 of 2023 wef 30/10/2023]
(1AF)  In this section, a company is a qualifying company for a year of assessment if —
(a)where the company is not part of a group — the company derives less than $500 million in gross revenue from all of its trades and businesses in that basis period; or
(b)where the company is part of a group — all the entities in the group derive a total of less than $500 million in gross revenue from all of the entities’ trades and businesses in that basis period.
[Act 30 of 2023 wef 30/10/2023]
(1AG)  For the purposes of subsection (1AF) —
(a)“FRS 110” means the financial reporting standard known as Financial Reporting Standard 110 (Consolidated Financial Statements) that is treated as made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time; and
(b)“group” means a group of entities (whether incorporated or registered in Singapore or elsewhere) comprising a parent and its subsidiaries within the meaning of FRS 110.
[Act 30 of 2023 wef 30/10/2023]
(1AH)  No allowance under subsection (1AD) may be made to any qualifying company in respect of any instalment paid by the qualifying company under any agreement to acquire any intellectual property rights that is signed before the basis period for the year of assessment 2024.
[Act 30 of 2023 wef 30/10/2023]
(1B)  Subject to section 37J, where a company carrying on a trade or business incurs during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015 capital expenditure in acquiring one or more intellectual property rights for use in its trade or business, there is, in addition to the writing‑down allowance under subsection (1), to be made in respect of all its trades and businesses a writing‑down allowance computed in accordance with the formula
where A is —
(a)for the year of assessment 2013, the lower of the following:
(i)such capital expenditure incurred during the basis period for that year of assessment;
(ii)$1,200,000;
(b)for the year of assessment 2014, the lower of the following:
(i)such capital expenditure incurred during the basis period for that year of assessment;
(ii)the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and
(c)for the year of assessment 2015, the lower of the following:
(i)such capital expenditure incurred during the basis period for that year of assessment;
(ii)the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii), and the lower of the amounts specified in paragraph (b)(i) and (ii).
[37/2014]
(1BAA)  Subject to section 37J, where a company carrying on a trade or business incurs during the basis period for the year of assessment 2016, 2017 or 2018 capital expenditure in acquiring one or more intellectual property rights for use in its trade or business, there is, in addition to the writing‑down allowance under subsection (1) or (1AA), to be made in respect of all its trades and businesses, a writing‑down allowance computed in accordance with the formula
where A is —
(a)for the year of assessment 2016, the lower of the following:
(i)such capital expenditure incurred during the basis period for that year of assessment;
(ii)$1,200,000;
(b)for the year of assessment 2017, the lower of the following:
(i)such capital expenditure incurred during the basis period for that year of assessment;
(ii)the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and
(c)for the year of assessment 2018, the lower of the following:
(i)such capital expenditure incurred during the basis period for that year of assessment;
(ii)the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii), and the lower of the amounts specified in paragraph (b)(i) and (ii).
[37/2014; 34/2016]
(1BA)  In subsection (1A), the amount under paragraph (a)(ii) is substituted with “$400,000” if the company does not carry on any trade or business during the basis period for the year of assessment 2012, and the balance under paragraph (b)(ii) is substituted with “$400,000” if the company does not carry on any trade or business during the basis period for the year of assessment 2011.
(1BB)  In subsection (1B) —
(a)if the company does not carry on any trade or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”;
(b)if the company does not carry on any trade or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and
(c)to avoid doubt, no deduction may be made from the substituted amount in subsection (1B)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (1B)(a)(i) and (ii) if the company does not carry on any trade or business during the basis period for the year of assessment 2013, and no deduction may be made from the substituted amount in subsection (1B)(c)(ii) of the lower of the amounts specified in subsection (1B)(b)(i) and (ii) if the company does not carry on any trade or business during the basis period for the year of assessment 2014.
(1BC)  In subsection (1BAA) —
(a)if the company does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”;
(b)if the company does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and
(c)to avoid doubt, no deduction may be made from the substituted amount in subsection (1BAA)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (1BAA)(a)(i) and (ii) if the company does not carry on any trade or business during the basis period for the year of assessment 2016, and no deduction may be made from the substituted amount in subsection (1BAA)(c)(ii) of the lower of the amounts specified in subsection (1BAA)(b)(i) and (ii) if the company does not carry on any trade or business during the basis period for the year of assessment 2017.
[37/2014]
(1C)  Where a company proves to the Comptroller’s satisfaction that it has during or after the basis period for the year of assessment 2011 incurred capital expenditure by way of making one or more instalment payments under an agreement or agreements in acquiring one or more intellectual property rights for use in its trade or business, that is or are signed during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), or between the year of assessment 2024 and the year of assessment 2028 (both years inclusive), and an allowance is made under subsection (1A), (1AD), (1B) or (1BAA), those subsections apply with the following modifications:
(a)a reference to the capital expenditure incurred on the acquisition of one or more intellectual property rights during the basis period for a year of assessment, being the basis period in which the agreement or agreements is or are signed, is a reference to the aggregate of —
(i)the price or prices (excluding any finance charges) at which it might have purchased the right or all the rights that is or are the subject of the agreement or agreements for cash at the time of the signing of the agreement or agreements; and
(ii)the capital expenditure incurred on the acquisition of any other intellectual property rights for use in its trade or business during that basis period;
(b)a reference to the capital expenditure incurred on the acquisition of one or more intellectual property rights during the basis period for a year of assessment excludes the amount of any instalment paid or deposit made by it under that agreement or any of those agreements during the basis period;
(c)the allowance referred to in subsection (1A), (1AD), (1B) or (1BAA) in respect of each right that is the subject of an agreement is to be made to the company for the year of assessment in respect of each basis period during which it paid an instalment or instalments, or made a deposit or deposits, under the agreement, in the proportion which the total amount of the instalment or instalments paid (excluding any finance charges), and deposit or deposits made, during that basis period for that right bears to the total amount of all instalments (excluding any finance charges) and deposits under the agreement for that right.
[37/2014; 34/2016]
[Act 30 of 2023 wef 30/10/2023]
(1D)  No writing‑down allowance under subsections (1A), (1AD), (1B) and (1BAA) may be made for any capital expenditure incurred in acquiring any intellectual property rights in any software which are acquired for the purpose of licensing all or any of those rights to another.
[37/2014]
[Act 30 of 2023 wef 30/10/2023]
(1E)  To avoid doubt, the writing‑down allowance under subsection (1A), (1B) or (1BAA) is to be made to a company during the applicable writing‑down period in subsection (1) or (1AA).
[34/2016]
(2)  The total writing‑down allowance to be made for any year of assessment to a company for capital expenditure incurred in acquiring any intellectual property rights under subsection (1) or (1AA), and under subsection (1A), (1AD), (1B) or (1BAA), is an amount computed in accordance with the formula
where A
is —
(a)20% if the writing‑down period for that allowance is 5 years;
(b)10% if the writing‑down period for that allowance is 10 years; or
(c)% if the writing‑down period for that allowance is 15 years; and
B
is the sum of —
(a)the capital expenditure; and
(b)the writing‑down allowance under subsection (1A), (1AD), (1B) or (1BAA) for that expenditure.
[34/2016]
[Act 30 of 2023 wef 30/10/2023]
(2A)  The writing‑down allowances to be made to a company under this section are allowed only if —
(a)there is an undertaking by the company that it is an assignee of the intellectual property rights;
(b)the claim is made by the company in such manner and subject to such conditions as the Comptroller may require; and
(c)in the case of writing‑down allowances mentioned in subsection (1AA), the company makes the election mentioned in subsection (1AB).
[34/2016]
(2B)  The Minister or an authorised body may in any particular case waive any of the requirements under subsection (2A)(a) and (b) in respect of any intellectual property rights acquired on or after 17 February 2006, subject to such conditions as the Minister or authorised body may impose.
[34/2016]
[Act 41 of 2020 wef 12/04/2024]
(2BA)  If —
(a)any requirement under subsection (2A)(a) and (b) has been waived (whether before, on or after 2 December 2019) for a company in relation to any writing‑down allowances under subsection (2B); and
(b)the company fails to comply with a condition subsequent imposed under subsection (2B) for such waiver,
then, if the Minister or authorised body is satisfied, having regard to the company’s representation and all the relevant circumstances of the case, that it is just and reasonable to do so, the Minister or authorised body —
(c)may make a determination that the company is not entitled to any writing‑down allowance in respect of the relevant intellectual property rights for each year of assessment beginning with a specified year of assessment; and
(d)must give a written notice of the determination to the Comptroller and the company.
[32/2019]
[Act 41 of 2020 wef 12/04/2024]
(2BB)  If a determination is made under subsection (2BA), then (despite anything in this section) —
(a)any writing‑down allowance that has already been made to the company in respect of those relevant intellectual property rights for each year of assessment beginning with the specified year of assessment is treated for the purposes of this section as having been wrongly made, and the Comptroller may, subject to section 74, make an assessment or additional assessment on the company for the year or years of assessment to make good any tax shortfall; and
(b)no writing‑down allowance may be made to the company in respect of the relevant intellectual property rights —
(i)for any year of assessment after the year or years of assessment mentioned in paragraph (a); or
(ii)if no writing‑down allowance has been made to the company for the specified year of assessment, for the specified year of assessment and each subsequent year of assessment.
[32/2019]
(2C)  Despite subsections (1), (1AA) and (2), where a company that is an approved media and digital entertainment company carrying on a trade or business has acquired on or after 22 January 2009 approved intellectual property rights pertaining to films, television programmes, digital animations or games, or other media and digital entertainment contents, for use in that trade or business, writing‑down allowances in respect of the capital expenditure incurred in acquiring those rights —
(a)are to be made to it during a writing‑down period of 2 years beginning with the year of assessment relating to the basis period in which that expenditure is incurred; and
(b)for each such year of assessment are an amount equal to 50% of the capital expenditure incurred.
[34/2016]
(2D)  No writing‑down allowances under subsections (1A), (1AD), (1B) and (1BAA) may be made in respect of any intellectual property rights in respect of which any of the requirements under subsection (2A)(a) and (b) has been waived under subsection (2B), or any approved intellectual property rights referred to under subsection (2C).
[37/2014; 34/2016]
[Act 30 of 2023 wef 30/10/2023]
(2E)  Where writing‑down allowances have been made to any company under subsection (1A), (1AD), (1B) or (1BAA) in respect of the acquisition of any intellectual property rights and any of the following events occurs within 5 years, 10 years or 15 years (depending on the writing‑down period for those allowances) from the acquisition of such intellectual property rights:
(a)the rights come to an end without being subsequently revived;
(b)the company sells, transfers or assigns all or any part of those rights;
(ba)the company licenses all or any of those rights (being rights in any software) to another;
(c)the company permanently ceases to carry on the trade or business,
the following provisions apply:
(d)no writing‑down allowance in respect of such intellectual property rights may be made to that company under subsections (1A), (1AD), (1B) and (1BAA) for the year of assessment relating to the basis period in which the event occurs and for any subsequent year of assessment; and
[Act 30 of 2023 wef 30/10/2023]
(e)if any of those events occurs within the period of one year from the acquisition of the intellectual property rights, any writing‑down allowances made under subsection (1A), (1AD), (1B) or (1BAA) must be brought to charge as if the allowances were not made, and are deemed as income for the year of assessment relating to the basis period in which the event occurs.
[37/2014; 34/2016]
[Act 30 of 2023 wef 30/10/2023]
(3)  Any capital expenditure incurred on the acquisition of any intellectual property rights by a company before the commencement of its trade or business is treated for the purpose of this section as if it had been incurred by it on the first day it commences that trade or business.
(4)  Subject to subsection (4A), where writing‑down allowances have been made to any company under subsection (1), (1AA) or (2C) in respect of any intellectual property rights and, before the end of the writing‑down period, any of the following events occurs:
(a)the rights come to an end without being subsequently revived;
(b)the company sells, transfers or assigns all or any part of those rights;
(c)the company permanently ceases to carry on the trade or business,
no writing‑down allowance in respect of the intellectual property rights may be made to that company for the year of assessment relating to the basis period in which the event occurs or for any subsequent year of assessment, and, where (on the occurrence of the event referred to in paragraph (b)) the price at which the rights were sold, transferred or assigned exceeds the amount of the writing‑down allowances yet to be allowed on the date of the event, there is to be made on the company for the year of assessment relating to the basis period in which the event occurs a charge of an amount equal to the lower of —
(d)the excess; and
(e)the writing‑down allowances made under subsections (1), (1AA) and (2C).
[34/2016]
(4A)  Where parts of any intellectual property right are sold, transferred or assigned by the company at different times and at least one sale, transfer or assignment occurs before the end of the writing‑down period, subsection (4) applies to each sale, transfer and assignment with the following modifications:
(a)the reference to the amount of writing‑down allowances yet to be allowed for the year of assessment relating to the basis period in which the event occurs, is a reference to an amount ascertained in accordance with the formula
where A
is the amount of writing‑down allowances yet to be allowed for the intellectual property right on the date of the first of such sales, transfers or assignments; and
B
is the aggregate of the prices of the parts of that right previously sold, transferred or assigned by the company,
or zero, if the amount ascertained by that formula is less than or equal to zero; and
(b)the reference to the writing‑down allowances made under subsections (1), (1AA) and (2C) is a reference to the balance of such allowances made under subsections (1), (1AA) and (2C) in respect of that right after deducting the total amount of any charges made under this section in respect of that right.
[34/2016]
(5)  Where a company to whom writing‑down allowances have been made under subsections (1), (1AA) and (2C) in respect of any intellectual property rights sells, transfers or assigns all or any part of those rights after the writing‑down period, there is to be made on the company for the year of assessment relating to the basis period in which the sale, transfer or assignment occurs, a charge in an amount equal to the price which the rights were sold, transferred or assigned or in an amount equal to the capital expenditure incurred in acquiring the rights, whichever is less.
[34/2016]
(6)  For the purposes of subsection (5), where there is more than one sale, transfer or assignment of any part of any intellectual property rights, the amount of the capital expenditure incurred in acquiring the intellectual property rights for the year of assessment relating to the basis period in which the sale, transfer or assignment of that part of the rights occurs is ascertained in accordance with the formula
where A
is the capital expenditure incurred in acquiring the intellectual property rights; and
B
is the total amount of any charges made under this section in any previous years of assessment in respect of that expenditure.
(6A)  Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where, in the basis period for any year of assessment, the trade or business, in which the intellectual property rights are used, produces income that is exempt from tax as well as income chargeable with tax, the allowances for that year of assessment are to be made against each income for that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances.
(6B)  Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where, in the basis period for any year of assessment, the trade or business, in which the intellectual property rights are used, produces income that is exempt from tax as well as income chargeable with tax, and any charge under subsection (4) or (5) arises to be made, such proportion of that charge is exempt from tax as appears reasonable to the Comptroller in the circumstances.
(7)  For the purpose of this section, any sale, transfer or assignment of any intellectual property rights which occurs after the date on which the trade or business of a company permanently ceases is deemed to have occurred immediately before the cessation.
(8)  Despite the repeal of section 19B by the Income Tax (Amendment) Act 2001, the repealed section 19B continues to apply and have effect to any approved know‑how or patent rights for which writing‑down allowances had been made before the repeal as if that Act had not been enacted.
(9)  Despite the amendment of section 19B by the Income Tax (Amendment) Act 2003, section 19B in force immediately before 1 November 2003 continues to apply and have effect to any intellectual property rights approved before that date.
(10)  No writing‑down allowance may be made —
(a)under subsection (1) for any capital expenditure incurred in respect of intellectual property rights acquired after the last day of the basis period for the year of assessment 2016;
(aa)under subsection (1AA) for any capital expenditure incurred in respect of intellectual property rights acquired after the last day of the basis period for the year of assessment 2028; or
[Act 30 of 2023 wef 30/10/2023]
(b)under subsection (2C) for any capital expenditure incurred in respect of intellectual property rights acquired after the last day of the basis period for the year of assessment 2018.
[37/2014; 32/2019]
(10A)  No writing‑down allowance under subsections (1), (1A), (1AA), (1AD), (1B), (1BAA) and (2C) may be made for any capital expenditure incurred by a company referred to in subsections (1), (1A), (1AA), (1AD), (1B), (1BAA) and (2C) in acquiring intellectual property rights from —
(a)its related party ––
(i)to whom any deduction has been allowed under section 14, 14C, 14D, 14E, 14EA or 14P for any outgoing, expense or payment incurred for any activity which resulted in the creation of the intellectual property; and
[Act 30 of 2023 wef 30/10/2023]
(ii)whose proceeds from the sale, transfer or assignment of those intellectual property rights to the company are not chargeable to tax; or
(b)its related party who acquired the rights, directly or indirectly, from a related party of the company referred to in paragraph (a).
[37/2014; 34/2016]
[Act 30 of 2023 wef 30/10/2023]
(10B)  The Minister may by order exempt a company from subsection (10A) in respect of such transaction as may be specified in the order.
(10C)  No writing‑down allowance under subsections (1A), (1AD), (1B) and (1BAA) may be made to any company in respect of any amount of capital expenditure incurred on the acquisition of intellectual property rights for which an investment allowance has been claimed under Part 8 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967.
[37/2014]
[Act 30 of 2023 wef 30/10/2023]
(10D)  No allowance under subsections (1A), (1B) and (1BAA) may be made to any company in respect of any instalment paid by it under any agreement to acquire any intellectual property right that is signed before the basis period for the year of assessment 2011.
[37/2014]
(10E)  If, in the case of an acquisition of intellectual property rights —
(a)whose acquisition date is on or after 25 March 2016; and
(b)the payment for which is not made by instalments,
the capital expenditure incurred for the acquisition exceeds the open‑market price for those rights, then, for the purpose of determining the amount of writing‑down allowances for that expenditure under subsection (1AA), (1AD), (1BAA) or (2C), the Comptroller may treat the open‑market price as the amount of that expenditure, and in that event subsection (5) also applies as if the open‑market price were the amount of that expenditure.
[34/2016]
[Act 30 of 2023 wef 30/10/2023]
(10F)  In subsection (10E), “open‑market price”, for intellectual property rights, means either —
(a)the price which those rights could have been purchased in the open market on the acquisition date of those rights; or
(b)if, by reason of the special nature of those rights, it is not possible to determine the price mentioned in paragraph (a), such other value as the Comptroller considers to be a reasonable value for those rights after considering the valuation of those rights by an appropriate valuer and other relevant circumstances.
[34/2016]
(10G)  If, in the case of an acquisition of intellectual property rights —
(a)whose acquisition date is on or after 25 March 2016; and
(b)the payment for which is made by instalments,
the total amount of the deposits and instalment payments (excluding any finance charges) made in a basis period exceeds the open‑market price for those rights, then, for the purpose of determining the amount of writing‑down allowances in such a case under subsection (1AA) or (2C), the Comptroller may treat the open‑market price as the amount of such expenditure, and in that event subsection (5) also applies as if the open‑market price were the amount of such expenditure.
[34/2016]
(10H)  In subsection (10G), “open‑market price”, for intellectual property rights, means an amount computed by the formula
where C
is the total amount of the deposits and instalment payments (excluding any finance charges) made in the basis period;
D
is the total amount of all the deposits and instalment payments (excluding any finance charges) under the agreement to acquire those rights; and
E
is either —
(a)the price (excluding any finance charges) which those rights could have been purchased in the open market on their acquisition date; or
(b)if, by reason of the special nature of those rights, it is not possible to determine the price mentioned in sub‑paragraph (a), such other value as the Comptroller considers to be a reasonable value for those rights after considering the valuation of those rights by an appropriate valuer and other relevant circumstances.
[34/2016]
(10I)  If, in the case of an acquisition of intellectual property rights —
(a)whose acquisition date is on or after 25 March 2016; and
(b)the payment for which is made by instalments,
the amount mentioned in subsection (1C)(a)(i) exceeds the open‑market price mentioned in subsection (10F), then, for the purpose of determining the amount of writing‑down allowances to be made for any year of assessment under subsection (1AD) or (1BAA) (as the case may be), the Comptroller may treat the open‑market price mentioned in subsection (10F) as the amount mentioned in subsection (1C)(a)(i).
[34/2016]
[Act 30 of 2023 wef 30/10/2023]
(10J)  If —
(a)intellectual property rights or a part of such rights are or is sold, transferred or assigned on or after 25 March 2016; and
(b)the rights or part are or is sold, transferred or assigned for less than the open‑market price,
then, for the purpose of determining the amount of any charge under subsection (4), (4A) or (5), the Comptroller may treat the open‑market price as the price at which the rights or part (as the case may be) are or is sold, transferred or assigned.
[34/2016]
(10K)  In subsection (10J), “open‑market price”, for intellectual property rights or a part of such rights, means —
(a)the price which those rights or that part would have fetched if sold, transferred or assigned in the open market at the time of the actual sale, transfer or assignment; or
(b)if, by reason of the special nature of those rights or part, it is not possible to determine the price mentioned in paragraph (a), such other value as the Comptroller considers to be a reasonable value for those rights or that part after considering the valuation of those rights or that part by an appropriate valuer and other relevant circumstances.
[34/2016]
(11)  In this section —
“appropriate valuer” means a valuer who is independent of any party to the acquisition, sale, transfer or assignment (as the case may be) of the intellectual property rights, and has qualifications and experience that are relevant to the valuation in question;
“approved” means approved by the Minister or an authorised body, subject to such conditions as the Minister or authorised body may impose;
[Act 41 of 2020 wef 12/04/2024]
“capital expenditure” does not include legal fees, registration fees, stamp duty and other costs related to the acquisition of any intellectual property rights;
“intellectual property rights” means the right to do or authorise the doing of anything which would, but for that right, be an infringement of any patent, copyright, trade mark, registered design, geographical indication, layout‑design of integrated circuit, trade secret or information that has commercial value, or the grant of protection of a plant variety;
“media and digital entertainment company” means a company whose principal trade or business is to provide media and digital entertainment in Singapore.
[Act 33 of 2022 wef 04/11/2022]
[34/2016]
[Deleted by Act 33 of 2022 wef 04/11/2022]
(11A)  In the definition of “intellectual property rights” in subsection (11), the expressions “trade secret” and “information that has commercial value”, and any work or subject matter to which the expression “copyright” relates, exclude the following:
(a)information of customers of a trade or business, such as a list of those customers and requirements of those customers, gathered in the course of carrying on that trade or business;
(b)information on work processes (such as standard operating procedures), other than industrial information, or technique, that is likely to assist in the manufacture or processing of goods or materials;
(c)compilation of any information as described in paragraph (a) or (b);
(d)such other matter as the Minister may by regulations prescribe.
[37/2014]
(12)  In subsections (1A), (1AD), (1B) and (1BAA), a reference to capital expenditure incurred on the acquisition of intellectual property rights excludes any such expenditure to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board.
[37/2014]
[Act 30 of 2023 wef 30/10/2023]
(13)  In this section, for a company, the acquisition date of any intellectual property rights is —
(a)the date of the signing of the agreement to acquire those rights; or
(b)if there is no agreement, the date on which those rights are assigned to the company.
[34/2016]
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Last updated 1 May 2025
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