Royalty is the income received for the rights to use:
- Copyrights
- Patents
- Trademarks
On this page:
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; or
- deductible against any income earned in or derived from Singapore.
Qualifying for 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, you will be taxed on the lower of:
- amount of royalties after allowable deductions; or
- 10% of the gross royalties.
The tax concession does not apply to royalties received for any work published in:
- any newspaper;
- periodical;
- approved intellectual property or innovation (from Year of Assessment 2017).
Example 1: Qualify for tax concession
David received royalty of $3,000 from publishing his book in 2024. He claimed allowable expenses of $2,800 against the gross royalty income of $3,000.
Net royalty after expenses = $200
10% of gross royalty = $300
As the net royalty after claiming allowable expenses is lower, David will be taxed $200 in the Year of Assessment 2025.
The tax concession currently accorded to authors, composers and choreographers will be withdrawn over 3 years, with a gradual increment of the percentage of gross royalties subject to tax by 30%-points per year. The phased withdrawal will take effect from Year of Assessment 2027 and the concession will be fully withdrawn in Year of Assessment 2029.
The revised concession under the phased withdrawal is:
| Year of Assessment | Revised Concession (Percentage of gross royalty subject to tax if lower than net amount of royalty after expenses) |
|---|---|
| 2024 to 2026 | 10% as per current |
| 2027 | 40% |
| 2028 | 70% |
| 2029 | Fully withdrawn i.e. 100% if no claim of expenses |
Reporting royalties
Royalty is taxable in the year it is due and payable.
You must declare the full amount of gross royalties received under 'Other Income' in your Income Tax Return and provide details (including a statement of expenses incurred, if any) of the royalties.
If you qualify for the tax concession, you should also email us the supporting documents on the sources of your royalties.