On 20 February 2017, Minister of Finance Mr. Heng Swee Keat announced the introduction of the IP Development Incentive (IDI).
In conjunction with this, the following IP income carve-out provisions were announced: removal of IP income from the scope of the Pioneer Certificate-Services (PC-S) and Development and Expansion Incentive (DEI) for new incentive awards approved on or after 1 July 2017 (subsequently moved to 1 July 2018); and grandfathering of such income until 30 June 2021 for existing incentive recipients.
After extensive consultations with companies, tax advisors as well as the Organisation for Economic Co-operation and Development (OECD), the final legislation on the IP income carve-out provision was finalised and gazetted on 4 May 2018. Along with this, the Singapore Economic Development Board (EDB) released a guide, which provides a list of questions intended for taxpayers to self-assess if they are subject to the IP income carve-out provisions.
