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Double Tax Deduction for Internationalisation (DTDi)

Companies planning to expand overseas can benefit from DTDi, with a 200% tax deduction on eligible expenses for international market expansion and investment development activities.
Benefits
  • Up to 200% tax deduction on eligible costs1;
  • Expenditure cap for Automatic DTDi of S$150,000.

1. Approved business gets to deduct against their taxable income, twice the qualifying expenses incurred for qualifying activities.

Eligibility

You are:

  • A business residing in Singapore with a primary purpose of promoting the trade of goods or provision of services;
  • A business that enjoys discretionary incentives1 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.

 

You need to:

  • Submit application on the DTDi portal prior to starting the project.

 

Projects should meet the following key objectives:

  • Promote the company's new products and services to new target market(s).
  • Identify new customers in target market(s) for company's existing products and services.
  • Promote the company's new products and services to existing customers.
  • Promote the company's existing products and services to existing markets so as to increase market share.

 

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

Critical information
  • Automatically claim 200% tax deduction on the first S$150,000 of eligible expenses for nine activities per year of assessment.

  • No pre-approval from Enterprise Singapore (ESG) is required for the following activities:
    1. Overseas market development trips and missions;
    2. Overseas investment study trips and missions;
    3 Overseas trade fairs;
    4. Local trade fairs approved by ESG or STB;
    5. Virtual trade fairs approved by ESG;
    6. Product / Service certification;
    7. Overseas advertising and promotional campaign;
    8. Design of packaging for overseas markets;
    9. Advertising in approved local trade publication.

  • Eligible expenses on qualifying activities outside the nine areas and expenses exceeding S$150,000 will require Enterprise Singapore's approval.

 

Note: Companies will need to apply to ESG for qualifying expenses under overseas market development trips/missions and investment study trips/missions listed below:

  • Fees paid to secure speaking spots at overseas business/trade conferences to pitch products/services to attendees.
  • Logistic costs of transporting materials/samples used during the overseas market development trips/missions and investment study trips/missions.
  • Third party consultant cost to arrange business networking events to promote products/services.
What to expect when applying

Application Process:

  • Register/Login as a DTDi User.
  • Before project commencement, submit application online with CorpPass1 for activities:
    1. That do not fall under automatic DTDi,
    2. With quantum exceeding the first S$150,000 for that year of assessment under automatic DTDi.
  • Only completed applications will be processed.
  • Other supporting documents may be requested to verify eligible expenses.

Application Approval:

  • For approved applications, submit evaluation forms upon project completion.
  • Letter of Support will be issued to support your claims with Inland Revenue Authority of Singapore (IRAS).
  • Attach the Letter of Support from Enterprise Singapore (ESG) to IRAS when filing the company's annual income tax return.
  • All other relevant supporting documents* should be compliant and made available to IRAS upon request.
  • IRAS will assess if expenses submitted qualify for tax deductions.

Claims:

  • Once project is completed, submit the Evaluation Form for ESG 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$150,000.
  • Documentation* such as proof of expenditure and purpose, should be provided upon IRAS request.

*Refer to "Documents you will need for your application" for more details.

1. No CorpPass Account? Refer to the CorpPass guide for instructions on setting up an account.

Documents you'll need for your application
  • Application form for DTDi;
  • Evaluation Form from ESG;
  • All other relevant documents such as purpose and itinerary of the trip, list of companies met, invoices and receipts of the qualifying expenses may be requested.
Useful links

For more details: Double Tax Deduction for Internationalisation (DTDi)

For Frequently Asked Questions on DTDi: DTDi FAQs

For Frequently Asked Questions on Employee Overseas Posting: Employee Overseas Posting FAQs

To access CorpPass Portal: CorpPass Incentive Portal

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