Double Tax Deduction for Internationalisation Scheme: A Detailed Guide

The Double Tax Deduction for Internationalisation (DTDi) Scheme offers businesses enhanced tax deductions for qualifying expenses incurred during international expansion activities. At Apexia Corporate Advisory, we help businesses navigate the DTDi framework to maximize their tax benefits while expanding globally.

What is the DTDi Scheme?

The Double Tax Deduction for Internationalisation Scheme allows businesses to claim up to 200% tax deductions on qualifying expenses incurred for market expansion and investment development activities outside Singapore. This incentive encourages companies to explore and capture overseas opportunities.

Eligibility Criteria

To qualify for the DTDi Scheme, companies must meet the following conditions:

• The company must be registered in Singapore.
• The company must have its tax residency in Singapore.
• The activities must be conducted to support international expansion and market entry.

Qualifying Activities

Expenses incurred for the following activities may qualify for the DTDi Scheme:

• Overseas business development trips and missions
• Overseas investment study trips and missions
• Participation in overseas trade fairs and exhibitions
• Market research and feasibility studies
• Advertising and promotional campaigns in overseas markets

Pre-Approval Requirement

For qualifying expenses exceeding SGD 150,000 per Year of Assessment (YA), companies must obtain prior approval from Enterprise Singapore or the Singapore Tourism Board, depending on the nature of the activities.

Claiming the DTDi

To claim the DTDi, companies must:

• Submit the claims through the Corporate Income Tax Return (Form C-S/ C-S (Lite)/ C).
• Ensure all claims are supported with proper documentation, including receipts, contracts, and evidence of activity completion.

Documentation Requirements

To support your DTDi claims, businesses must maintain the following records:

• Invoices and payment receipts for qualifying expenses
• Travel itineraries and boarding passes for business trips
• Contracts and agreements for overseas projects
• Reports or materials from market research and promotional activities

How Apexia Corporate Advisory Can Help

At Apexia, we provide end-to-end support to help businesses claim the Double Tax Deduction for Internationalisation. Our services include:

• Assessing eligibility for the DTDi Scheme
• Preparing and submitting accurate claims
• Ensuring compliance with pre-approval and documentation requirements
• Providing advice on international tax planning and strategy

With our expertise, your business can expand globally while optimizing tax benefits under the DTDi Scheme.