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Split Fee Agreement Template for Singapore

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Key Requirements PROMPT example:

Split Fee Agreement

"I need a Split Fee Agreement for my recruitment agency to formalize a 30-70 commission split with an overseas partner in Malaysia, ensuring compliance with Singapore employment agency regulations and including monthly payment terms starting from March 2025."

What is a Split Fee Agreement?

Split Fee Agreements are essential documents used when multiple parties collaborate in business activities where revenue or commission sharing is involved. These agreements, particularly under Singapore jurisdiction, establish clear frameworks for fee distribution and help prevent disputes over financial arrangements. The Split Fee Agreement is commonly used in professional services, recruitment, real estate, and financial sectors, where referral partnerships and commission-based relationships are common. It addresses key aspects such as payment terms, calculation methods, service scope, and compliance with Singapore's regulatory requirements, including the Employment Agency Act and relevant tax regulations.

What sections should be included in a Split Fee Agreement?

1. Parties: Identification and details of all parties involved in the fee-splitting arrangement

2. Background: Context and purpose of the fee-splitting arrangement

3. Definitions: Key terms used throughout the agreement

4. Fee Structure: Detailed breakdown of how fees will be split between parties

5. Payment Terms: Timing and method of payments

6. Duration: Term of the agreement and renewal provisions

7. Termination: Conditions and process for ending the agreement

What sections are optional to include in a Split Fee Agreement?

1. Non-Competition: Restrictions on competitive activities between parties during and after the agreement term

2. Confidentiality: Provisions for protecting sensitive business information shared between parties

3. Force Majeure: Provisions dealing with unforeseen circumstances that may affect the agreement's performance

What schedules should be included in a Split Fee Agreement?

1. Fee Calculation Schedule: Detailed methodology for calculating split fees including formulas and examples

2. Service Territory Schedule: Definition of geographic areas or markets covered by the agreement

3. Payment Schedule: Detailed timeline of payment dates and amounts

4. Performance Metrics: Specific KPIs or targets that affect fee split calculations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



























Clauses



























Industries

Employment Agencies Act (Chapter 92): Primary legislation governing employment agencies, recruitment services, and fee arrangements between agencies. Essential for split fee agreements involving recruitment or placement services.

Employment Agencies Rules: Detailed regulations supplementing the Employment Agencies Act, specifying operational requirements and fee restrictions for employment agencies.

Employment Agency Licensing Conditions: Specific conditions and requirements for licensed employment agencies, including guidelines on fee arrangements and splits.

Civil Law Act (Chapter 43): Fundamental legislation governing contract formation, enforcement, and remedies in Singapore's civil law system.

Income Tax Act (Chapter 134): Legislation governing taxation of income, including treatment of split fees and commission arrangements for tax purposes.

Goods and Services Tax Act (Chapter 117A): Regulations on GST application and compliance for service fees and split payment arrangements.

Competition Act (Chapter 50B): Legislation ensuring fair competition and preventing anti-competitive practices in business arrangements, including fee-sharing agreements.

Professional Conduct Rules: Industry-specific regulations governing professional conduct and fee arrangements in regulated sectors.

Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act: Anti-money laundering legislation ensuring transparency and legitimacy of financial arrangements and payments.

Personal Data Protection Act 2012: Legislation governing the collection, use, and disclosure of personal data in business arrangements and agreements.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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