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The Singapore Double Tax Deduction for Internationalization

Singapore is a very appealing country to foreign investors mainly because of the incentives they are offered for opening companies here. During the years, the Singapore government has enabled various incentives schemes which have become quite popular among investors. This is why they were renewed and even improved in order to keep up with the latest trends. One of these incentives is the Double Tax Deduction for Internationalization (DTDi). It should be noticed that it is not related to Singapore’s double taxation agreements, despite the name similarity.

Our Singapore company formation agents can assist foreign investors interested in starting businesses in the city-state.

What exactly is the Singapore Double Tax Deduction for Internationalization?

Under the Double Tax Deduction for Internationalization, companies can benefit from tax deductions of up to 200% for certain expenses related to “market expansion and investment development activities”. The expenditures will first be assessed by International Enterprise (IE) and the Singapore Tourism Board (STB) only if the amount to be deducted exceeds 100,000 SGD, according to the 2017 DTDi.

The DTDi is a program destined for small and medium-sized enterprises seeking to expand abroad. Also, this is one of the many programs created by the government for Singapore companies seeking to set up operations abroad but with a larger deduction base – 200% of the expenses incurred for these activities.

In order to qualify for the DTDi, a company must be registered in Singapore.

Our company formation consultants in Singapore can help with registration process of a company.

What are the activities covered by the DTDi in Singapore?

There are several activities for which Singapore companies can qualify under the Double Tax Deduction Internationalization Scheme. These are:

  • – market preparation activities;
  • – promotion activities;
  • – trips to trade fairs;
  • – franchising activities;
  • – advertising activities;
  • – employee relocation activities;
  • – feasibility studies;
  • – establishment of offices in other countries.

Starting with this year, the DTDi scheme provides to deductions of the salaries of relocated employees. This deduction will be available until March 2020.

For assistance in opening a company in Singapore, please feel free to contact our experts in company formation in Singapore.