Intellectual Property Development Incentive (IDI)

What does it support?

IDI concerns income from commercialising qualifying patents and copyrighted software. The modified nexus approach links the eligible income to qualifying R&D expenditure.

Who can apply?

A company must be registered and operating in Singapore, hold qualifying intellectual property and undertake substantive qualifying R&D. The award can stand alone or accompany an eligible EDB incentive project.

How does the support work?

A 5%, 10% or 15% tax rate can apply to the qualifying percentage of qualifying IP income. The approved rate, qualifying income and nexus fraction determine the benefit; there is no fixed cash cap.

What expenditure can qualify?

Qualifying R&D expenditure helps determine the nexus fraction. It is not reimbursed under IDI: the benefit applies to the resulting qualifying IP income.

Key conditions

Only specified rights, including patents and copyright in software, qualify. The company must satisfy the modified nexus rules and its approved substantive commitments.

Timing and application process

Discuss the proposed IP activity with EDB before relying on IDI. A formal application should establish the intellectual property, R&D and income supporting the proposed award.

Important programme distinctions

Income from an innovative product is not automatically qualifying IP income. Establishing the covered rights and their connection to the R&D is essential.

Related funding routes

• Enterprise Innovation Scheme (EIS) in Singapore
• Development and Expansion Incentive for Services (DEI(Svc))