Intellectual Property Development Incentive

Who qualifies

• Must be registered in Singapore.
• The entity must be registered and operating in Singapore; IDI may be standalone or tied to a Pioneer Services or DEI incentive.
• The entity must track and trace R&D expenditure to elected qualifying IP rights; the obligation to keep tracked and traced records begins on the date of award.
• Standalone award, 5% rate: employ at least 20 additional Skilled Employees based in Singapore by Year 5 and incur additional annual Total Business Expenditure of at least S$10.5 million by Year 5.
• Standalone award, 10% rate: at least 20 additional Skilled Employees and additional annual TBE of at least S$7 million by Year 5.
• Standalone award, 15% rate: at least 13 additional Skilled Employees and additional annual TBE of at least S$5 million by Year 5.
• Tie-in award: the concessionary rate corresponds to the primary incentive (Pioneer Services Incentive 5%, or DEI including HQ at 5%, 10% or 15%), and the entity must meet the conditions in the primary incentive’s Letter of Award; revocation of the primary incentive revokes the IDI.
• Not eligible if the entity falls within Singapore Government sanctions lists, engages in illegal activities, regulated military goods or tobacco, is under investigation for regulatory breaches, is a MAS-licensed financial institution, or is an MPA-regulated shipping entity, unless specifically referred by MAS or MPA.

What it funds

• R&D, product development, prototyping, IP

Costs covered: IP registration and licensing costs.

Concessionary tax rate of 5%, 10% or 15% on the share of qualifying IP income determined by the modified nexus approach; qualifying IP income is royalties or other income from commercial exploitation of elected qualifying IP rights (patents and copyrights subsisting in software).

Payment: Delivered as a tax deduction, allowance or credit.

How to apply

Submit a formal application to EDB containing the Core Form and Supplementary Form, including the expansionary activities and IDI declaration.

1. Prepare the Core Form with projected incremental investment in employment, fixed assets, and total business expenditure.
2. Prepare the Supplementary Form with expansionary activities and declaration of meeting the IDI requirements.
3. Submit the formal application to EDB.

Documents

• Core Form
• Supplementary Form — Includes the IDI declaration.

Claiming support

Election of qualifying IP rights is made as part of tax filings to IRAS; the factsheet does not publish a separate public claim form.

Contact: https://www.edb.gov.sg/en/contact-us

Application window: Standalone awards run for a five-year qualifying period; a tie-in award runs from the first day of the primary incentive (or a date EDB specifies) to its last day. No closing date stated.