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
Brief description of IPR1 acquired : ______
______
Name and address of the transferor (person from whom
the IPR is acquired) : ______
______
______
Relationship with transferor, if applicable : ______
Capital expenditure2 incurred in acquiring the IPR : S$______
Date on which the capital expenditure is incurred : ______
Claiming writing-down allowances for Years of Assessment : ______to______
PART III – ADDITONAL INFORMATION TO BE FURNISHED
Please attach a third party independent valuation report3 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 related party4 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.
PART IV – DECLARATION
We confirm 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)**.
______
Full name and signature of Designation Date
authorised person5

*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.

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

·  Trade secret or information that has commercial value[a]

·  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 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.

4. 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.

5. The authorised person(s) who can endorse the Declaration Form are: company director, principal officer or a person authorised by the company.

6. 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. If your company is filing Form C-S instead of Form C, this Declaration Form and the relevant documents/ information are to be retained and submitted to IRAS upon request.

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[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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