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                                                                                                                                                                                                                                          SINGAPORE PHARMBIO GUIDE 2021/2022
                                                                                                                                                                                                                   technology transfer and licensing deals are common. For example, a S$5 million licensing fee to a foreign company will effectively become S$5.5 million after including 10% of tax withheld.
GOVERNMENT INCENTIVES
Pharmaceutical and biotech companies in Singapore can take advantage of a number of incentives from government agencies like the Economic Development Board (EDB) and Enterprise Singapore (ESG). Write-ups on the many available government assistance schemes may be found at various government websites including IRAS (www.iras.gov.sg), EDB (www.edb.gov.sg), Enterprise Singapore (www.enterprisesg.gov.sg), and StartupSG (www.startupsg.gov.sg).
These incentives can be broadly classified into tax and non-tax incentives. Some of the more relevant ones include:
Tax Incentives:
• Pioneer Certificate Incentive (PC) encourages companies to make significant investments in Singapore, sizable contributions to the local economy and introduce technologies, skills and/or know-hows that are substantially more advanced than those prevailing in the local industry. The incentive grants corporate tax concessions or full exemptions on incomes derived from the qualifying activities during the incentive period (up to 5 years) (administered by EDB).
• Development and Expansion Incentive (DEI) encourages companies to intensify their manufacturing activities locally or introduce new engineering or technical service activities, including R&D that would be of economic benefit to Singapore. The incentive grants corporate tax concessions or full exemptions on incomes derived from the qualifying activities during the incentive period (up to 5 years) (administered by EDB).
• Land Intensification Allowance (LIA) is available to businesses in the manufacturing and logistics sectors with large land takes and low Gross Plot Ratios (GPR) to encourage
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