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Singapore: Tax-Efficient Sectors

Licensing and Franchising: Royalty Collection

The Franchising and Licensing Association (Singapore) (FLA) was established in 1993 as the island state's national franchise body, and has since extended its scope to include companies engaged in branding and technology licensing. The FLA was one of the founding members of the World Franchise Council.

Franchisees can make royalty payments to franchisors without approval from any authority, and royalties can be freely converted to foreign currency for payment to a foreign franchisor. Withholding tax of 10% is generally payable by local franchisees on royalties paid to non-resident franchisors, although this may vary where there is a double tax treaty with the franchisor's home country.

 

 

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