Time to evolve Singapore's intellectual property tax regime?

IN today's world of Industrial Revolution 4.0, intangibles such as intellectual property (IP) are increasingly embraced as the main strategic asset that provides a competitive advantage. According to Ocean Tomo, a well-established IP intermediary, the value of intangible assets for S&P 500 companies - of which IP is a major component - now constitutes 80 per cent of total market value, up from 17 per cent in 1975. It is therefore not surprising that many governments are striving to create a conducive environment for IP, so as to bolster skilled jobs creation and innovation.

Singapore has long recognised the need for an attractive and competitive IP regime. This was further endorsed in the IP Hub Master Plan, which signals the government's resolve to ride the IP wave and iron out potential challenges that hinder the country to become a pre-eminent IP hub in Asia. The Master Plan lays out three tenets that would primarily position Singapore as a hub for IP transactions and management, quality IP filings and dispute resolution. To be a globally competitive IP hub, having an equally globally competitive tax regime is important. In this respect,…