[Singapore Fiscal Benefits Series 2]to New Trade Finance Company

Immediately after last week, this week, Elite Stage has compiled the incentives for trade, finance and intellectual property related industries for you. Take your time and check which ones are suitable for your industry.
Trade Related Business
Global Trader Program (GTP)
A preferential tax rate of 5% or 10% is available on income from qualified transactions. Eligible transactions include physical trading brokerage, futures and derivatives (including structured commodity finance) transactions.
Finance and Treasury Related Businesses
Financial and Treasury Center (FTC) Benefits
A preferential tax rate of 8% on income from qualifying FTC services/businesses. Exemption from withholding tax on interest payments (e.g., loans) to banks, non-bank financial institutions, and approved network companies arising from FTC activities.
Financial Industry Incentive Scheme (FSI)
Preferential tax rates of 5%, 10%, 12% or 13.5% for qualifying banking and finance businesses, head office and corporate services, fund management, and investment advisory services.
Monetary Authority of Singapore Regulatory Sandbox System
During the sandbox period, liberal legal as well as regulatory requirements allow financial institutions to experiment with innovations in financial services.
Financial Sector Technology and Innovation Initiative (FSTI)
The FSTI program provides funding of up to 70% of eligible expenses, with funds available for seven purposes.Innovation hubs: to attract financial institutions (FI) to set up R&D and innovation labs in Singapore to test innovative ideas and launch market solutions.Institutional-level projects: catalyzing innovative ideas and market solutions to improve the competitiveness of financial institutions and industries.Industry-wide technology or utility projects: Support the building of industry-wide technology infrastructure to deliver new integrated services to improve the efficiency and productivity of the financial services industry.

Proof of Concept (POC): Supports the testing, development and penetration of emerging innovative technologies into the financial industry.

Artificial Intelligence and Data Analytics (AIDA): Support to strengthen the AIDA ecosystem in Singapore’s financial sector.

Cybersecurity Capability Grant: Deepens cybersecurity capabilities and develops local cybersecurity talent in Singapore’s financial services industry.

Digital Acceleration Grant: to support Singapore’s small financial institutions and fintech companies to adopt digital solutions to improve productivity, increase operational resilience and better manage risk, etc.

R&D Activities and IP Management
Intellectual Property Development Incentive Scheme (IDI)
A certain percentage of qualifying IP income is eligible for a preferential tax rate of 5% or 10%, which is capped at a percentage of 100% as determined by the Modified Linked Rate Method. The preferential period does not exceed 10 yearsQualified IP income is defined as royalties or other receivables received as payment consideration for the commercial exploitation of selected qualified IP.Eligible IP is defined as all patents or patent applications, and all software copyrights. Multiple qualifying IPRs may be classified as “IPR families” if they are interrelated and it is not possible to determine the respective revenue/expenses of each qualifying IPR within such IPRs.
Deduction of Qualified R&D Expenses
A pre-tax deduction of up to 250% is available for qualified expenses incurred on R&D projects conducted locally.
Double tax deduction for IP registration fees
A pre-tax deduction of up to 200% is available for the first S$100,000 of eligible IP registration fees per tax assessment year.
Double tax deduction for IPR licensing fees
Up to 200% pre-tax deduction for the first S$100,000 of qualifying IP licensing fees per tax year.
Research and Innovation Incentive Scheme for Businesses (RIS(C))
This incentive scheme aims to support the development of R&D capabilities in science and technology and the establishment of skills centers in Singapore. Project cost expenditures that meet the concessionary conditions include the following.-Labor costs for qualified personnel-Equipment-Materials and consumables

Approved royalty concessions (ARI)
Royalties paid for access to cash technology and know-how are eligible for a preferential or zero withholding income tax rate.
Intellectual Property Accrual Allowance (S19B)
Companies that acquire both legal and economic ownership of intellectual property may choose to accrue the purchased IP fees over a period of 5, 10 or 15 years. If only economic ownership of the IP is acquired, the business needs to obtain approval from the Economic Development Board (EDB) of Singapore.

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