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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.

 

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 four activities per year of assessment.
  • No pre-approval from Enterprise Singapore (ESG) is required for the following activities:
    1. Overseas business development trips and missions;
    2. Overseas investment study trips and missions;
    3 Overseas trade fairs;
    4. Local trade fairs approved by ESG or STB;
  • Eligible expenses on qualifying activities outside the four areas and expenses exceeding S$150,000 will require Enterprise Singapore's approval.

 

Note:  This does not apply to the extended scope of eligible expenses announced during Budget 2020. Companies will need to apply to Enterprise Singapore for the enhancements announced during Budget 2020.

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: DTDi FAQs

To access CorpPass Portal: CorpPass Incentive Portal

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