Singapore-based businesses eyeing international markets can take advantage of the Double Tax Deduction for Internationalisation (DTDi) Scheme—an initiative designed to ease the financial burden of overseas expansion.
Recently extended until 31 December 2030, this scheme allows companies to claim double tax deductions on qualifying expenses related to market expansion and investment development activities.
What is the DTDi Scheme?
Under Sections 14B, 14H, and 14I of the Income Tax Act 1947, the DTDi Scheme offers double tax deductions on eligible internationalisation expenses.
This support extends to activities like overseas business trips, trade fairs, e-commerce campaigns, and even salary costs for Singaporean employees posted abroad.
Automatic Qualifying Activities (No Prior Approval Needed)
Your company can claim up to $150,000 per Year of Assessment (YA) on the following activities without prior approval from ESG or STB:
- Overseas business development trips and missions
- Overseas investment study trips and missions
- Participation in overseas trade fairs
- Local trade fairs approved by ESG/STB
- Approved virtual trade fairs
- Product/service certification (from 17 Feb 2021)
- Overseas advertising and promotional campaigns (from 17 Feb 2021)
- Design of packaging for overseas markets (from 17 Feb 2021)
- Advertising in approved local trade publications (from 17 Feb 2021)
📌 Note: Maintain proper documentation. IRAS may request proof of expenditure and activity purpose.
Key Approved Additions Include:
- Salary expenses (Jul 2015 – Dec 2030) for Singaporeans/PRs posted overseas (need to apply to ESG)
Approved additions from 1 Apr 2020
- Business missions with activities such as speaking slots or networking events
- Third-party consultancy services for talent and business network development
- Logistics costs for materials/samples used during missions or sent post-virtual fairs
- E-commerce campaign expenses (from 15 Feb 2023) with ESG’s prior approval
New Focus: E-Commerce Campaigns
To promote digital growth, expenses for “e-commerce campaigns” are now claimable (from Feb 2023) with ESG’s approval. Covered costs include:
- Business Advisory: Market promotion and platform selection
- Account Creation: Rights and setup for e-commerce accounts
- Content Creation: Visual content like banners and product imagery
- Product Listing and Placement: Uploading and scheduling promotions
Each business is eligible for a one-year approval per country.
DTDi Summary Table
Category | Coverage Period | Details |
Scheme Validity | 1 Apr 2012 – 31 Dec 2030 | Double tax deduction period |
Expenditure Cap (Automatic) | YA 2012 – YA 2018 | $100,000 per YA |
YA 2019 – 31 Dec 2030 | $150,000 per YA | |
Salary Expenses (Section 14I) | 1 Jul 2015 – 31 Dec 2030 | Requires ESG approval; capped at $1M per YA |
New E-Commerce Claims | From 15 Feb 2023 | ESG approval needed; 1-year per-country cap |
Qualifying Activities (Auto) | No approval required | Includes trade fairs, missions, packaging, local ads, etc. |
Other Qualifying Activities | Requires ESG/STB approval | Must submit for case-by-case evaluation |
Ready to Expand Globally?
Our team can help you prepare DTDi applications, determine eligible expenses, and liaise with Enterprise Singapore for required approvals. Contact us for end-to-end support in unlocking tax savings while going global!