Royalty is the income received for the right to use:
- Copyrights
- Patents
- Trademarks and etc.
Royalty earned in Singapore is taxable.
Royalty is earned in Singapore if…
- It is paid directly or indirectly by a person resident in Singapore or by a permanent establishment in Singapore.
- It is deductible against any income earned in or derived from Singapore.
When is it taxable
Royalty is taxable in the year it is paid.
Tax concession
To qualify for the tax concession, the royalties must be received for :
- any literary dramatic, musical or artistic work: or
- approved intellectual property or approved innovation
If you qualify for the tax concession, you will be taxed on the lesser of :
- amount of royalties after allowable deductions; or
- 10% of the gross royalties.
The tax concession does not apply to royalties or payment received for any work published in any newspaper or periodical.
How to report
You need to declare the amount of gross royalties received under 'other income' in your tax form, and provide details of the royalties as well as statement of expenses incurred (if any).
If you qualify for tax concession, you should also provide us with details on the sources of your royalties, together with the necessary supporting documents.
You may email us, fax to us on 6351 3636 or mail the details to:
The Comptroller of Income Tax
Inland Revenue Authority of Singapore
55 Newton Road
Revenue House
Singapore 307987
Find out more about how to submit your tax return.