• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/22/2013

Singapore - Tax incentives for intangible asset developers 

October 22: For Singapore tax purposes, the purchase of an intangible asset is regarded as a business expense, which can be deducted through a "writing-down allowance."  This system may provide purchasers a considerable tax benefit through a reduction in their tax liability.

However, business owners that “build up” intangible assets—such as brand names—do not enjoy such tax benefits.

If brand owners were also allowed to claim writing-down allowances on the value of the brands they own, the seemingly unequal tax treatment between brand owners and brand buyers might be addressed. Under such a system, if a brand is subsequently sold, any tax benefits derived from the writing-down allowance could be returned to the government (through “clawback” provisions).

Read an October 2013 report [PDF 225 KB] prepared by the KPMG member firm in Singapore: Better for Singapore to build, not sell, its brands

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