South-East Asia IPR SME Helpdesk

Singapore Indonesia tax treaty and IP royalties

IP royalties paid from Indonesia to Singapore are common for many reasons. One is that Singapore is a base for regional investment so holding companies tend to be located in Singapore, covering South Asia. Another is that foreign businesses operating in SE Asian countries face other restrictions (ownership limitations, higher corporate tax etc) that might make IP royalties a useful structural tool. A third is that investment vehicles that own IP assets in a robust jurisdiction are easier to attract VC and other financing options, even an outright sale.

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