Double Tax Deduction for Internationalisation Scheme

Businesses may claim double tax deduction on qualifying expenses incurred in the following four qualifying activities up to the specified expenditure cap, without approval from Enterprise Singapore or STB:

1. Overseas business development trips/ missions;
2. Overseas investment study trips/ missions;
3. Overseas trade fairs; and
4. Local trade fairs approved by Enterprise Singapore or STB.

Businesses should maintain documentation as proof of expenditure and purpose. Expenditure exceeding the specified expenditure cap will require approval from Enterprise Singapore or STB. Please refer to Enterprise Singapore's website for the eligibility criteria, list of qualifying activities and the corresponding qualifying expenses on which double tax deduction can be claimed.

The expenditure cap for automatic double tax deduction under the scheme is $100,000 per YA for qualifying expenses incurred from 1 Apr 2012 to YA 2018 and $150,000* per YA for those incurred from YA 2019 to 31 Mar 2020.  

The following table illustrates the expenditure cap:

To provide greater support for businesses expanding overseas and create skilled jobs for Singaporeans, the scheme was further enhanced in Budget 2015 to include qualifying salary expenses incurred between 1 Jul 2015 and 31 Mar 2020 for Singaporean and Permanent Resident employees posted to an overseas establishment of the approved firm or company. The amount of qualifying salary expenses to be allowed double tax deduction under the scheme is capped at $1 million per approved entity per YA, subject to conditions. Businesses will have to apply to Enterprise Singapore to enjoy the double tax deduction on qualifying salary expenses incurred from 1 Jul 2015 to 31 Mar 2020.

The Double Tax Deduction for Internationalisation Scheme will apply over the following qualifying period: 

1. Automatic double tax deduction will apply for qualifying expenditure incurred from 1 Apr 2012 to 31 Mar 2020; and
2. Approval window for qualifying expenditure incurred in excess of specified expenditure cap and on other qualifying activities will be from 1 Apr 2012 to 31 Mar 2020.