Double Tax Deduction for Internationalization

In an increasingly globalized world, internationalization has become a critical strategy for businesses to expand their reach and tap into new markets. However, venturing into international markets often involves additional costs and complexities. To encourage and support Singapore companies in their internationalization efforts, the Singaporean government has introduced the Double Tax Deduction for Internationalization (DTDi) program. This article provides an overview of the DTDi, highlighting its benefits, eligibility criteria, and the step-by-step process for businesses to avail themselves of this tax incentive.

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Topics To Be Discussed

Key Facts about the DTDi

Benefits of the DTDi

Eligibility Criteria for DTDi

How to Apply for the DTDi

Key Facts about the Double Tax Deduction for Internationalization scheme

The Double Tax Deduction for Internationalization (DTDi) is a tax incentive introduced by the Inland Revenue Authority of Singapore (IRAS) and Enterprise Singapore to foster internationalization and encourage businesses to explore overseas opportunities. Under this incentive, eligible expenses incurred by Singapore-based companies for qualifying internationalization activities are granted a tax deduction. The DTDi encompasses a wide range of activities across various stages of a company's overseas growth journey, providing comprehensive support to Singapore-based enterprises as they venture into new markets and explore international opportunities.

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Tax Credit Amount

200% tax deduction

Timeline

Typically, it may take several weeks to a few months for the application to be processed, depending on the various factors.

Key Requirements

1. Company registered in Singapore;

2. Launch internationalization project;

3. Project must meet the specified key objectives.

Benefits of the DTDi

Qualifying businesses will benefit from an advantageous 200% tax deduction on eligible expenses related to international market expansion and investment development activities. The DTDi initiative provides comprehensive support throughout crucial stages of a company's overseas growth expedition, encompassing the following pivotal categories:

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Eligibility Criteria for the DTDi Scheme

To be eligible for the Double Tax Deduction for Internationalization program, businesses need to meet the following criteria:

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Singapore-based company: An applicant should be a company incorporated in Singapore and tax resident in the country. It should be primarily engaged in promoting the trade of goods or provision of services.

Discretionary Incentives Consideration: Businesses currently benefiting from discretionary incentives, as outlined under the Income Tax Act (ITA), or under the Economic Expansion Incentives (Relief from Income Tax) Act, may also be eligible for the DTDi incentive on a case-by-case basis. Approval for such businesses is subject to evaluation and endorsement by EnterpriseSG or the Singapore Tourism Board.

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How to Apply for the DTDi Scheme

To navigate the DTDi application process seamlessly, please follow the below steps:

Utilize your CorpPass credentials to submit your application online. This step applies to activities that fall outside the scope of automatic DTDi or those with a quantum exceeding the initial S$150,000 for the specific year of assessment under automatic DTDi. Ensure your application is submitted before the commencement of your project. Adhering to this deadline is crucial for a smooth processing experience.

By meticulously following these steps, you can harness the benefits of the Double Tax Deduction for Internationalization incentive and propel your internationalization efforts forward with confidence.

How We Can Help with the DTDi Incentive

At our core, we are driven to assist your business in successfully maneuvering through the intricacies of the DTDi incentive, ensuring you gain access to the necessary financial resources essential for realizing your growth and expansion aspirations. In addition, we proudly introduce matchME, an advanced tool meticulously crafted to enhance your grant search experience. This innovative solution empowers you to efficiently pinpoint the programs that seamlessly align with your company's unique profile. Delve deeper into the spectrum of our comprehensive Incentives services and unlock the array of benefits they bring to your business endeavors.

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This series of articles regarding Singapore government incentives was prepared by CorporateServices.com, a leading Singapore-based corporate service provider. We offer a range of services for private limited companies in Singapore. Our team of experienced experts provides Singapore company registration and other incorporation-related services through our cutting-edge online platform.

Contact us if you need assistance with setting up a new Singapore company or would like to transfer the administration of your existing company to us.