By Roger Pay, specialist in company formation matters in Singapore
The beginning of 2018 comes with good news for companies in Singapore, as the parliament has passed two important amendments proposed at the end of last year to the Economic Expansion Incentives Law. Through these measures, the authorities hope to keep Singapore on the map of sought countries by foreign investors. Our Singapore company formation specialists can help foreign investors who want to open companies here.
The first measure targets the taxation of intellectual property income earned by Pioneer Service Companies, simply known as PSC businesses involved in research and development activities. The same income will be excluded from taxation under the Development and Expansion Incentive program.
This way, the income generated by IP rights will be reinvested in other research and development activities.
Our company formation advisors in Singapore can offer more information on the taxation of income arising from intellectual property rights. We can also assist those who want to register a trademark in the city-state.
The second amendment targets the Integrated Investment Allowance (IIA) which currently provides for allowances for fixed capital expenditures for foreign companies with operations in Singapore which purchased equipment for activities carried outside the city-state.
Under the amended scheme, foreign companies will no longer by subject to such strict criteria related to the capital used to buy the equipment, the only requirement being for the equipment to be used for the project approved by the Singapore authorities. Secondly, the IIA was extended until the end of December 2022. Our experts in company formation in Singapore can give you more details about this scheme.
Through the new measures, the government is confident that small and medium-sized enterprises (SMEs) will be able to arrange advantageous collaborations with partners outside Singapore. Also, the city-state will become more attractive to foreign enterprisers seeking for quality investments, considering the new incentives meet all international standards related to taxation.
If you want to open a company in Singapore and need assistance, do not hesitate to contact our local consultants.