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:
The examples below illustrate potential tax savings through DTDi when an eligible expense is not an Allowable Business Expense1 under the Income Tax.
# Allowable expenses generally relate to expenses incurred and related to the specified business. For more details please refer to IRAS website
1: From year of assessment 2019: Automatic DTDi expenditure cap will be raised from $100,000 to $150,000
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:
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.
Companies should meet the following criteria:
Applications must be submitted on the DTD Incentive portal prior to starting the project.
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.
If you are a new DTDi user, register here.
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.
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