Double Tax Deduction for Internationalisation

DTDi

Companies planning to expand overseas can benefit from the Double Tax Deduction Scheme for Internationalisation (DTDi), with a 200% tax deduction on eligible expenses for international market expansion and investment development activities.

* As announced at Budget 2018, the expenditure cap for Automatic DTDi will be raised from S$100,000 to S$150,000, effective from the Year of Assessment 2019.

DTDi supports activities across key stages of a company's overseas growth journey, including:

DTDi

Benefits of DTDi

The examples below illustrate potential tax savings through DTDi when an eligible expense is not an Allowable Business Expense1 under the Income Tax.

 

Automatic DTDi

You can automatically claim 200% tax deduction on the first S$100,000 of eligible expenses for four activities per year of assessment. No prior approval from Enterprise Singapore is required for the following activities:

  • Overseas business development trips and missions
  • Overseas investment study trips and missions
  • Overseas trade fairs
  • Local trade fairs approved by Enterprise Singapore or Singapore Tourism Board (STB)

Eligible expenses on qualifying activities outside the four areas, and expenses exceeding S$100,000 will require Enterprise Singapore's approval.

For more information on Automatic DTDi, please click here.

Eligibility

Companies should meet the following criteria:

  • Reside in Singapore with a primary purpose of promoting the trade of goods or provision of services.
  • Businesses enjoying discretionary incentives2 may also be allowed to qualify for the DTDi scheme on a case-by-case basis, subject to approval by Enterprise Singapore or Singapore Tourism Board. Incentivised businesses must have their global headquarters in Singapore, with the primary purpose of trading in goods or providing services, and have an intention to internationalise.

Applications must be submitted on the DTD Incentive portal prior to starting the project.

Apply

If you are a new DTDi user, register here.

For existing DTDi users, login here.

Step 1 Submit your application online with your SingPass/CorpPass for activities:
  • that do not fall under automatic DTDi
  • with quantum exceeding the first S$100,000 for that year of assessment under automatic DTDi
Applications must be submitted before project commencement.
Click here for answers to FAQs.
Step 2 We will process your application upon receipt of complete information. We may request for supporting documents to verify eligible expenses.
Step 3 For approved applications, submit your evaluation forms upon project completion. We will thereafter proceed to issue a Letter of Support to support your claims with Inland Revenue Authority of Singapore (IRAS).
Step 4 Attach the Letter of Support from Enterprise Singapore to IRAS when filing the company's annual income tax return. All other relevant supporting documents (like invoices, receipts, etc), should be compliant and made available to IRAS upon request.
Step 5 IRAS will assess if expenses submitted qualify for tax deductions.

Claims

After completing the project, you should submit the Evaluation Form for Enterprise Singapore to issue the Letter of Support for your claims with IRAS.

Companies are not required to submit upfront documentation to IRAS for expenditure not exceeding S$100,000. You will, however, need to produce documentation as proof of expenditure and purpose, should IRAS request. These include purpose and itinerary of the trip, list of companies met, invoices and receipts of the qualifying expenses.

FAQ

Click here for FAQ.

 

 

1: From year of assessment 2019: Automatic DTDi expenditure cap will be raised from $100,000 to $150,000

2: Discretionary incentives refer to those under, (a) Income Tax Act (ITA) - Sections 13A, 13F, 13S, 13V, 43C, 43E, 43G, 43J, 43P, 43Q, 43W, 43ZA, 43ZB, 43ZC, 43ZF or 43ZG, or (b) Economic Expansion Incentives (Relief from Income Tax) Act (EEIA) - Part II, III, IIIB or X.

 

For more information on how we can work with you to grow your business, click here.


 
 
 
Back: Financial Assistance