The scheme runs from 1 April 2012 through 31 December 2030.
Companies can benefit either through the automatic route—where some expenses are pre-cleared—or by seeking approval from Enterprise Singapore (ESG) or the Singapore Tourism Board (STB) for bigger or less standard items.The scheme runs from 1 April 2012 through 31 December 2030. Companies can benefit either through the automatic route—where some expenses are pre-cleared—or by seeking approval from Enterprise Singapore (ESG) or the Singapore Tourism Board (STB) for bigger or less standard items.
Singapore wants its businesses to go global, and one way it does that is through the Double Tax Deduction for Internationalization (DTDI) Scheme.Singapore wants its businesses to go global, and one way it does that is through the Double Tax Deduction for Internationalization (DTDI) Scheme.
The promise is simple: get 200% tax deduction on certain expenses tied to overseas expansion.
It’s a practical design. Everyday expenses are handled without red tape, while bigger-ticket or unusual claims need oversight.
A. Qualifying Expenses on Automatic Basis
A number of activities qualify automatically. No prior approval, no long forms. These include:
- Overseas business trips or missions,
- Investment study trips abroad,
- Joining overseas trade fairs,
- Attending local trade fairs (if ESG or STB approves),
- Virtual trade fairs endorsed by ESG,
- Product or service certifications approved by ESG,
- Running advertising or promotional campaigns overseas,
- Designing packaging for export markets,
- Placing ads in ESG-approved Singapore trade publications,
- Expenses on studies to identify overseas investments, and
- Transporting samples for such studies.
This list covers most of the early legwork companies do when exploring new markets.
Qualifying Expenses on Automatic Basis (2/2)
Even under the automatic track, conditions apply.
- For costs linked to identifying overseas investments, there’s a ceiling of SGD 150,000. And only Singapore-resident companies or firms with active business operations here qualify.
- For the other items—like trade fairs and advertising—the scheme applies to any company resident in Singapore or having a permanent establishment here.
If you step outside these limits, or spend beyond the caps, you’ll need to move to the approval route.
B. Qualifying Expenses on Approval Basis (1/2)
Some claims are bigger, more complex, and need clearance. These include:
- Fees for speaking at overseas conferences to pitch products,
- Costs of transporting materials or samples for missions,
- Hiring consultants to run networking events abroad,
- E-commerce start-up expenses (like content creation, advisory fees, or listing charges),
- Running an overseas trade office,
- Broader overseas marketing projects approved by ESG or STB,
- Feasibility or due diligence studies on approved foreign investments, and
- Salary costs for Singaporeans or Permanent Residents seconded overseas.
The idea is to support deeper international moves—not just testing waters, but building operations.
Qualifying Expenses on Approval Basis (2/2)
There are specific limits:
- Feasibility and due diligence studies: Eligible from 1 April 2012 to 31 December 2030, capped at SGD 1,000,000, for Singapore-resident companies.
- Salary costs of Singaporeans and PRs seconded abroad: Eligible from 1 July 2015 to 31 December 2030, also capped at SGD 1,000,000.
- For everything else—like e-commerce costs, overseas offices, or speaking slots—eligibility runs from 1 April 2012 to 31 December 2030. Caps are set by the Minister, and both Singapore-resident companies and permanent establishments can qualify.
So the approval route is broader, but also more tightly managed.
Final Thoughts
The DTDI Scheme is Singapore’s way of pushing its businesses to think global. By offering 200% tax deductions, it lowers the upfront cost of exploring new markets, setting up abroad, or even just running campaigns overseas.
The split design works well: the automatic list keeps small or routine expenses hassle-free, while the approval route allows support for larger moves—like overseas offices or staffing—without opening the door to abuse.
That said, the scheme isn’t “claim whatever you like.” Caps are real, eligibility rules are strict, and approval must be secured in advance for many categories. Miss that step, and you lose the benefit.
For businesses, the smart move is to treat DTDI as part of strategic planning. If you’re just testing a new market, the automatic route may be enough. But if you’re building a serious overseas presence, factor in time to apply for approval and budget within the caps.
At its heart, DTDI isn’t just a tax break—it’s a nudge. It tells Singaporean businesses: don’t stay small, don’t stay local. The government is ready to share the cost of international ambition, but you’ve got to plan and execute properly to reap the benefit.
