Acquisition and allowable expenditure
Estimated completion is ten minutes. Give company name/tax reference/address, IPR description, seller/address/relationship, acquisition expenditure/date and allowance YAs. Rights listed are patent, copyright, trademark, registered design, geographical indication, integrated-circuit layout, trade secret/commercial-value information and plant variety. Budget2014 clarification excludes customer-based intangibles and work-process documentation. Capital expenditure excludes legal/registration/stamp-duty and other acquisition costs; rights must serve trade/business.
Ownership and irrevocable years
Normally acquire legal assignment and future economic benefits. Economic-only requires EDB19B(2B) legal-ownership waiver approval attached, available from 17 February 2006. For acquisitions fromYA2017 elect5/10/15 years irrevocably when lodging the first allowance-year return. Declaration confirms trade use, permissible related-party acquisition, ownership/waiver and report/threshold alternative; authorised director, principal officer or company-authorised person signs name/designation/date.
Independent valuation conditions
Submit third-party report for related expenditure≥S$10 million or unrelated≥S$40 million; relation means direct/indirect control or common control. Valuer and firm must be unrelated to seller/buyer and uninterested in deal. Other company work current/within past two years must be disclosed with no conflict demonstrated. Report qualifications/awarding institute (CVA, CFA, CA examples) and relevant similar-IP/industry experience. Below threshold no independent report is mandatory, but IRAS may request qualifying-IP and no-above-market-price evidence.
19B(10A) exclusion and submission
No allowance for buying from a related creator that received14/14D/14DA/14E/14S deduction for IP-creating work and whose transfer proceeds are not taxed, or a related party acquiring directly/indirectly from that creator. The direct/indirect chain matters. Submit declaration and applicable Part III materials with Form C/C-S for YA of acquisition basis period. The form is a declaration, not approval that any supplied IP automatically qualifies.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
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