DECLARATION FOR THE PURPOSE OF CLAIMING WRITING-DOWN ALLOWANCES FOR
INTELLECTUAL PROPERTY RIGHTS (IPRS) UNDER SECTION 19B OF THE INCOME TAX ACT
This Declaration Form may take you 10 minutes to complete. Please read the explanatory notes
before completing.
PART I – COMPANY PARTICULARS
Name of company
: ________________________________
Tax reference number
: ________________________________
Registered address
: ________________________________
________________________________
PART II – DETAILS OF IPR ACQUIRED
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Brief description of IPR acquired
: ________________________________
________________________________
Name and address of the transferor (person from whom
the IPR is acquired)
: ________________________________
________________________________
________________________________
Relationship with transferor, if applicable
: ________________________________
Capital expenditure incurred in acquiring the IPR
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: S$______________________________
Date on which the capital expenditure is incurred
: ________________________________
For IPRs acquired in or after YA 2017
3
No. of years elected for writing-down allowances
: 5 / 10 / 15* years
Claiming writing-down allowances for Years of Assessment : _______________to________________
PART III – ADDITONAL INFORMATION TO BE FURNISHED
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Please attach a third party independent valuation report together with this Declaration Form where:
•
the capital expenditure incurred in acquiring the IPR is equal to or greater than S$0.5 million for a
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related party transaction; or
•
the capital expenditure incurred in acquiring the IPR is equal to or greater than S$2 million for an
unrelated party transaction.
Please also forward the following information when submitting the valuation report:
(a) Independence – Confirm that the IPR valuer and the firm that he/she belongs to are independent
from the IPR transaction (i.e. unrelated party with no interest in the IPR acquisition/disposal). If the
valuer also undertakes other assignment(s) for the company, the valuer must be able to
demonstrate that there is no conflict of interest between the IPR valuation assignment and the
other assignment(s) undertaken;
(b) Qualification – State whether the IPR valuer is a Chartered Accountant, a Chartered Financial
Analyst or a person with such other equivalent or relevant qualification. For the latter, full
particulars of the qualification and the professional institute that awarded the qualification has to be
stated; and
(c) Experience – Describe the valuer’s experience in valuing similar types of IPRs or IPRs in similar
industries.
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PART IV – DECLARATION
We confirm and acknowledge that:
(a) the IPR is acquired by the company for use in its trade or business;
(b) the company has the legal and economic ownership / only the economic ownership * of the
IPR acquired;
(c) the company has / has not * acquired the IPR from its related party under scenarios as stated
under Section 19B(10A) of the Income Tax Act (Cap. 134)**;
(d) the election made on the no. of years for writing-down allowances is irrevocable (election only
applicable for IPRs acquired in or after YA 2017).
____________________________________________
Full name and signature of
__________________
Designation
_______________
Date
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authorised person
*Delete where not applicable.
**(c) is not applicable if the IPR is not acquired from a related party. If so, please delete the full
sentence.
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EXPLANATORY NOTES FOR COMPLETING THE DECLARATION FORM
1.
“Intellectual property rights” or “IPRs” means the following:
•
•
•
•
•
•
•
•
Patent
Copyright
Trademark
Registered design
Geographical indication
Lay-out design of integrated circuit
a
Trade secret or information that has commercial value
Plant variety.
For more details on the above IPRs, please refer to IPOS’ website.
2.
“Capital expenditure” does not include legal fees, registration fees, stamp duty and other costs
related to the acquisition of the IPR.
3.
A company is allowed to make an irrevocable election to claim writing-down allowances over a
period of 5,10 or 15 years for capital expenditure incurred to acquire IPRs from YA 2017. The
irrevocable election is to be made at the time of lodgment of the income tax return in the first
YA of WDA claim.
4.
A company may appoint a valuer of its choice subject to the following:
(a) the valuer is a third party that is not related to the company and the transferor. The valuer
and the firm that he/she belongs to must be an independent party to the IPR transaction
(i.e. third party with no interest in the IPR acquisition/disposal). If the valuer also
undertakes other assignment(s) for the company, the valuer must be able to demonstrate
that there is no conflict of interest between the IPR valuation assignment and the other
assignment(s) undertaken;
(b) the valuer must either be a Chartered Accountant, a Chartered Financial Analyst or a
person with such other equivalent or relevant qualification; and
(c) the valuer possesses relevant valuation experience.
The company should maintain proper documentation to substantiate how its valuer has met
the above if queried by IRAS.
5.
For the purpose of the requirement to submit a valuation report, the company and the
transferor are considered to be “related parties” where:
(i)
one person, whether directly or indirectly, has the ability to control the other or where both
of them, whether directly or indirectly, are under control of a common person; or
(ii)
one person has, directly or indirectly, at least 25% of the issued capital of the other
person.
6.
The authorised person(s) who can endorse the Declaration Form are: company director,
principal officer or a person authorised by the company.
7.
The Declaration Form and the information in Part III of the Declaration Form (if applicable) are
to be submitted to IRAS together with the company’s Form C or Form C-S for the year of
assessment relating to basis period in which the IPR was acquired.
a
It was clarified in Budget 2014 that, in line with the policy intent of Section 19B, customer-based intangibles
and documentation of work processes do not fall within the scope of Intellectual Property Rights.
.
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