On 25/05/2013,
you requested for the version in force on 25/05/2013
incorporating all amendments published on or before 25/05/2013.
The closest version currently available is that of 18/04/2013.
14A.
—(1) Subject to this section, where a person carrying on a trade or business has incurred —
(a)
patenting costs during the period from 1st June 2003 to the last day of the basis period for the year of assessment 2010; or
(b)
qualifying intellectual property registration costs during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2015 (both years inclusive),
for the purposes of that trade or business, there shall be allowed to him a deduction of the amount of such costs.
[29/2010 wef Y/A 2011 & Sub Ys/A]
(1A) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2011 or the year of assessment 2012, there shall be allowed in respect of all his trades and businesses, in addition to the deduction allowed under subsection (1), a deduction for qualifying intellectual property registration costs incurred for the purposes of those trades and businesses, computed in accordance with the following formula:
where A is —
(a)
for the year of assessment 2011, the lower of the following:
(i)
such costs incurred during the basis period for that year of assessment; and
(ii)
$800,000; and
(b)
for the year of assessment 2012, the lower of the following:
(i)
such costs incurred during the basis period for that year of assessment; and
(ii)
the balance after deducting from $800,000 the lower of the amounts specified in paragraph (a)(i) and (ii).
[22/2011 wef Y/A 2011 & Sub Ys/A]
(1B) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015, there shall be allowed in respect of all his trades and businesses, in addition to the deduction allowed under subsection (1), a deduction for qualifying intellectual property registration costs incurred for the purposes of those trades and businesses, computed in accordance with the following formula:
where A is —
(a)
for the year of assessment 2013, the lower of the following:
(i)
such costs incurred during the basis period for that year of assessment; and
(ii)
$1,200,000;
(b)
for the year of assessment 2014, the lower of the following:
(i)
such costs incurred during the basis period for that year of assessment; and
(ii)
the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and
(c)
for the year of assessment 2015, the lower of the following:
(i)
such costs incurred during the basis period for that year of assessment; and
(ii)
the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii), and the lower of the amounts specified in paragraph (b)(i) and (ii).
[22/2011 wef Y/A 2011 & Sub Ys/A]
(1C) In subsection (1A), the amount under paragraph (a)(ii) shall be substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2012, and the balance under paragraph (b)(ii) shall be substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2011.
[22/2011 wef Y/A 2011 & Sub Ys/A]
(1D) In subsection (1B) —
(a)
if the person does not carry on any trade or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment shall be substituted with “$800,000”;
(b)
if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment shall be substituted with “$400,000”; and
(c)
for the avoidance of doubt, no deduction shall be made from the substituted amount in subsection (1B)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (1B)(a)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2013, and no deduction shall be made from the substituted amount in subsection (1B)(c)(ii) of the lower of the amounts specified in subsection (1B)(b)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2014.
[22/2011 wef Y/A 2011 & Sub Ys/A]
(1E) For the purposes of subsections (1A) and (1B), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has, during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2015 (both years inclusive), incurred qualifying intellectual property registration costs in respect of such firms for the purposes of his trade or business, the deduction that may be allowed to him for those costs in respect of all his trades and businesses shall not exceed the amount computed in accordance with subsection (1A) or (1B) (as the case may be) for that year of assessment.
[22/2011 wef Y/A 2011 & Sub Ys/A]
(1F) For the purposes of subsections (1A) and (1B), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2015 (both years inclusive), incurred qualifying intellectual property registration costs for the purposes of its trade or business, the aggregate of the deductions that may be allowed to all the partners of the partnership for those costs in respect of all the trades and businesses of the partnership shall not exceed the amount computed in accordance with subsection (1A) or (1B) (as the case may be) for that year of assessment.
[22/2011 wef Y/A 2011 & Sub Ys/A]
(2) The claim for deduction under subsection (1), (1A) or (1B) shall be allowed to a person only if —
(a)
there is an undertaking by the person that he would be the proprietor of the patent or registered trade mark, the registered owner of the registered design or the grantee of the plant variety, as the case may be, when the patent is granted, the trade mark or design is registered or the plant variety is granted protection; and
(b)
the claim is made by the person in such manner and subject to such conditions as the Comptroller may require.
[29/2010 wef Y/A 2011 & Sub Ys/A]
(3) For the purposes of this section, any patenting costs or qualifying intellectual property registration costs, as the case may be, incurred by a person prior to the commencement of his trade or business shall be deemed to have been incurred by that person on the first day he carries on that trade or business.
[21/2003]
[29/2010 wef Y/A 2011 & Sub Ys/A]
(4) Where a person to whom a deduction for patenting costs or qualifying intellectual property registration costs, as the case may be, has been allowed under subsection (1) sells, transfers or assigns in the basis period for any year of assessment all or any part of the rights for which such patenting costs or qualifying intellectual property registration costs, as the case may be, were incurred, the person shall be deemed to have derived an amount of income for that year of assessment equal to the price which the rights were sold, transferred or assigned or the deduction which has been allowed under subsection (1), whichever is the less.
[29/2010 wef Y/A 2011 & Sub Ys/A]
[21/2003]
(5) For the purposes of subsection (4), where there is more than one sale, transfer or assignment of any part of the rights for which such patenting costs or qualifying intellectual property registration costs, as the case may be, were incurred, the total amount deemed as income shall not exceed the total amount of deduction previously allowed under subsection (1).
[29/2010 wef Y/A 2011 & Sub Ys/A]
[21/2003]
(5A) Where —
(a)
a deduction has been made to any person under subsection (1A) or (1B) in respect of any qualifying intellectual property registration costs; and
(b)
the person sells, transfers or assigns all or any part of the qualifying intellectual property rights or the application for the registration or grant of the qualifying intellectual property rights for which such costs were incurred, within a period of one year from the date of filing of the application,
the deduction allowed under subsection (1A) or (1B) (as the case may be) shall be deemed as income of the person for the year of assessment relating to the basis period in which the sale, transfer or assignment occurs.
[29/2010 wef Y/A 2011 & Sub Ys/A]
(6) In this section —
“patenting costs” means the fees paid to —
(a)
the Registry of Patents in Singapore or an equivalent registry outside Singapore for the —
(i)
filing of a patent;
(ii)
search and examination report on the application for a patent; or
(iii)
grant of a patent; and
(b)
any registered patent agent for —
(i)
applying for any patent in Singapore or elsewhere;
(ii)
preparing specifications or other documents for the purposes of the Patents Act (Cap. 221) or the patents law of any other country; or
(iii)
giving advice on the validity or infringement of the patent;
“qualifying intellectual property registration costs” means the fees paid to —
(a)
the Registry of Patents, Registry of Trade Marks, Registry of Designs or Registry of Plant Varieties in Singapore or an equivalent registry outside Singapore for the —
(i)
filing of an application for a patent, for registration of a trade mark or design, or for the grant of protection of a plant variety;
(ii)
search and examination report on the application for a patent;
(iii)
examination report on the application for grant of protection of a plant variety; or
(iv)
grant of a patent; and
(b)
any person acting as an agent for —
(i)
applying for any patent, for the registration of a trade mark or design, or for the grant of protection of a plant variety, in Singapore or elsewhere;
(ii)
preparing specifications or other documents for the purposes of the Patents Act (Cap. 221), the Trade Marks Act (Cap. 332), the Registered Designs Act (Cap. 266), the Plant Varieties Protection Act (Cap. 232A) or the intellectual property law of any other country relating to patents, trade marks, designs or plant varieties; or
(iii)
giving advice on the validity or infringement of any patent, registered trade mark, registered design or grant of protection of a plant variety;
[29/2010 wef Y/A 2011 & Sub Ys/A]
“qualifying intellectual property right” means the right to do or authorise the doing of anything which would, but for that right, be an infringement of any patent, registered trade mark or design, or grant of protection of a plant variety;
[29/2010 wef Y/A 2011 & Sub Ys/A]
“registered patent agent” has the same meaning as in the Patents Act.
[21/2003]
(7) In this section, “patenting costs” and “qualifying intellectual property registration costs” exclude any expenditure to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board.
[29/2010 wef Y/A 2011 & Sub Ys/A]
[Act 29 of 2012 wef Y/A 2011 & Sub Ys/A]