Double Tax Deduction for Internationalisation Scheme

Qualifying Expenditure

Under Sections 14B, 14H and 14I of the Income Tax Act 1947, your company may claim double tax deduction on qualifying expenses incurred in the following 14 qualifying activities up to the specified expenditure cap, without the need to seek prior approval from EnterpriseSG or Singapore Tourism Board (STB) ("automatic DTDi"):

1. Overseas market development trips/ missions
2. Overseas investment study trips/ missions
3. Overseas trade fairs
4. Local trade fairs approved by EnterpriseSG or STB
5. Virtual trade fairs approved by EnterpriseSG*
6. Product/ service certification approved by EnterpriseSG*
7. Overseas advertising and promotional campaigns*
8. Design of packaging for overseas markets*
9. Advertising in local trade publications approved by EnterpriseSG*
10. Investment feasibility/ due diligence studies^#
    
11. Master licensing and franchising^#
12. Market surveys/ feasibility studies^#
13. Overseas business development^#
14. Production of corporate brochures for overseas distribution^#

Your company must maintain documentation as proof of expenditure and purpose and submit them upon IRAS' request.

Your company may also apply to EnterpriseSG or STB for case-by-case prior approval to claim double tax deduction on:

• Qualifying expenses incurred on qualifying market expansion and investment development activities that exceed the specified expenditure cap
• Expenditure incurred for other qualifying activities (i.e. e-commerce campaigns and overseas trade offices)

Enhancements to the Scope of Qualifying Expenses

1. To provide greater support for businesses expanding overseas and to create skilled jobs for Singaporeans, the scheme has been enhanced to include qualifying salary expenses incurred between 1 Jul 2015 and 31 Dec 2030 for Singaporean and Permanent Resident employees posted to an overseas establishment of the approved firm or company.

   The total amount of qualifying salary expenses incurred for employees posted overseas (Section 14I) and qualifying overseas investment development expenses (Section 14H) incurred on airfare, hotel accommodation, etc. to be allowed double tax deduction is capped at $1 million per approved entity per YA, subject to conditions.

   Businesses have to apply to EnterpriseSG to enjoy the double tax deduction on qualifying salary expenses incurred from 1 Jul 2015 to 31 Dec 2030.

   [UPDATED!] Qualifying activity of employee overseas posting has been subsumed under overseas trade office from 1 January 2026.

2. With effect from 1 Apr 2020, the list of qualifying expenses has been expanded to include the following expenses:
   1. Third party consultancy costs relating to new overseas business development to identify suitable talent and build up business network
   2. Expenses incurred for overseas market development trips/ missions and investment study trips/ missions (subject to EnterpriseSG's approval^{^}) for:
      • Securing speaking spots to pitch products/ services at overseas business/ trade conferences
      • Transporting materials/ samples used during the business trips/ missions
      • Engaging third party consultants to arrange business networking events to promote products/ services
      
      [UPDATED!] ^{^}As announced in Budget 2026, businesses are no longer required to seek approval from EnterpriseSG for the above expenses to be qualifying expenses with effect from YA 2027.
3. To continue supporting the internationalisation efforts of businesses, the scope of qualifying expenses has been expanded to cover the following fees incurred on or after 17 Feb 2021:
   1. Specified fees incurred on approved virtual trade fairs:
      • Package fees charged by event organisers for virtual exhibition hall and booth access, collateral creation, business meeting/ match sessions, pitches/ product launches/ speaking slots, webinar/ conference and post event analytics
      • Third party costs incurred to design and produce digital collaterals and promotion materials for the virtual trade fair
      • Logistics costs incurred to send materials/ samples overseas to potential clients met at the virtual trade fair. The following conditions need to be met: 
        1. Both the business and the recipient of the materials/ samples have attended the approved virtual trade fair; and
        2. The materials/ samples are sent within 6 months from the end of the approved virtual fair.

   2. Logistics costs to transport materials/ samples used during overseas investment study trips/ missions (subject to EnterpriseSG's approval^{^^})

   [UPDATED!] ^{^^}As announced in Budget 2026, businesses are no longer required to seek approval from EnterpriseSG for the above expenses to be qualifying expenses with effect from YA 2027.

4. To support businesses in their efforts to overcome initial challenges and build up capabilities in internationalising via e-commerce, the scope of qualifying expenses has been expanded to cover certain expenses incurred on or after 15 Feb 2023 on a new qualifying activity “e-commerce campaign”.

The scope of qualifying expenses under the “e-commerce campaign” activity covers the following e-commerce campaign startup expenses paid to e-commerce platform or service providers:

All double tax deduction claims under the “e-commerce campaign” activity require EnterpriseSG’s approval. For each business, EnterpriseSG will only approve such claims for e-commerce campaigns for a maximum period of one year per country.

Learn more about the eligibility criteria, list of qualifying activites and the corresponding qualifying expenses on which double tax deduction can be claimed at EnterpriseSG's website.

Specified Expenditure Cap

The expenditure cap for the automatic DTDi 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 YA 2026.

[UPDATED!] As announced in Budget 2026, to further support businesses in their internationalisation efforts, the expenditure cap for automatic DTDi will be increased to $400,000 per YA with effect from YA 2027.

The following table illustrates the expenditure cap:

Qualifying Period

The DTDi Scheme applies for the following qualifying period:

• Automatic DTDi applies for qualifying expenditure incurred from 1 Apr 2012 to 31 Dec 2030.
• The approval window for qualifying expenditure incurred in excess of the specified expenditure cap and on other qualifying activities is from 1 Apr 2012 to 31 Dec 2030.