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1.
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What is Double Tax Deduction (DTD)?
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2.
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What are the qualifying activities supporting under DTD?
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3.
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What eligibility criteria are needed to apply for DTD?
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4.
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Can companies participating in exhibitions held in Singapore but targetted at an international audience be supported under
DTD?
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5.
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For participation in overseas trade shows, can we register the booth under our subsidiary name?
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6.
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If my company had previously made a trip to Mexico supported under DTD and would like to make another trip there, would
Enterprise Singapore still support my application?
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7.
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Can partners of firms apply for overseas business development and investment trips under DTD?
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8.
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My company has participated in an overseas trade show in Thailand. However for logistics convenience, the organizer had
billed the payment to our subsidiary office in Thailand. Can we then claim for DTD?
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9.
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Can we claim DTD for overseas event if we arranged for our subsidiary to manage the event on our behalf?
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10.
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Is the supported amount indicated in the DTD support letter a cash grant?
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11.
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If my company is featured as a promotional participant of a mega event & is required to pay the event organizer in
sponsorship fees for the promotional activity, can I also qualify for the DTD incentive?
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12.
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My trade show in Germany starts on 15 May to 21 May 2011. I need to be earlier at the show to see to the arrangements of
the booth with the foreign vendors before the event. Can I claim for 17 May to 22 May 2011?
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13.
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With the enhanced DTD how does a business claim double tax deduction under the DTD scheme in its tax computation &
what documents do I need to submit to IRAS?
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14.
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Why is approval from Enterprise Singapore/STB no longer required for only these four categories of activities?
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15.
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Why is approval required for the other qualifying activities under the scheme?
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16.
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Why is there the need to impose a cap of $100,000 per company per YA on qualifying expenditure where no approval is required?
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17.
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Who are eligible to claim further double tax deductions without having to seek approval from Enterprise Singapore/ STB?
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18.
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What is the difference between overseas business development trips/missions and overseas investment study trips/missions?
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19.
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What are the qualifying expenditure available for double tax deduction without the need for approval from Enterprise Singapore/STB
on the 4 qualifying activities up to the first $100K per Year of Assessment?
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20.
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Does qualifying expenditure approved before the effective date of change (1 April 2012) count towards the cap of $100,000?
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21.
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What happens if I embark on a qualifying activity from 1 April 2012 (without applying for approval from Enterprise Singapore/ STB)
and find that the expenditure incurred for the qualifying activity exceeds the $100,000 cap on qualifying expenditure when the activity is completed?
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22.
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My next activity will cause my cumulative amount of expenditure on which DTD is claimed to exceed $100,000. I will therefore
need to submit an application to Enterprise Singapore/ STB. Do I make the application only for the qualifying expenditure in excess of $100,000 or for the entire
qualifying expenditure incurred for the activity?
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23.
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I have only utilised $70,000 under the enhanced scheme. Can I carry forward the unutilised part of $30,000 to next year?
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24.
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My accounting year ends in 30 June 2012, and there are only 3 months between the effective date of 1 April 2012 for the
$100,000 cap and 30 June 2012. Would the cap of $100,000 be prorated when I submit my YA2013 tax returns? Could a concession be made for me to carry forward
any unutilised part of the $100,000 cap?
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25.
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Where can I find the Guidelines for the automatic DTD?
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26.
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What are the other qualifying activities and expenditure available for double tax deduction?
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27.
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Company has been invited to receive an award from an overseas organiser. Can the travelling expenses be supported under
DTD?
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28.
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Can we have examples of non-eligible expenses not supportable under DTD?
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29.
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How do I submit my application to Enterprise Singapore via the DTD incentive portal?
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30.
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How do I check if my application has been submitted to Enterprise Singapore?
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31.
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Do I need to complete the organisation profile for repeat applications?
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32.
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Is there a limit to how many applications a company may submit for DTD?
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33.
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Does the company need to submit supporting documents for DTD applications?
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34.
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What do I do with the Letter of Support? Do I have to inform IRAS?
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35.
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How do I withdraw an application that has been submitted to Enterprise Singapore?
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36.
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Can I take changes when I have already submitted the application to Enterprise Singapore?
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37.
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Will I receive any notification from Enterprise Singapore after my DTD application is approved?
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38.
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What is Approved-In-Principle (AIP)?
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39.
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How do I search for a DTD application form which I have submitted?
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40.
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While I was registering my new company, I encountered the error message “Organization already registered. Please contact
<Person’s Name> for details”. What should I do?
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41.
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What do I do if my colleague’s name which is in the User Profile has already resigned?
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42.
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Can I print my DTD application?
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43.
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What do I do if my colleague who has a “saved as draft” DTD application resigned prior to the submission of the draft application?
Can the Covering Officer submit on his/her behalf?
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44.
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When I tried logging into the DTD incentive portal using my SingPass credentials, there was an error message “login fail”. I tried logging in a second time but system keeps prompting me “login fail”. What do I do?
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45.
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How do I register as a DTD user for multiple companies?
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46.
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Must I submit the Evaluation Form to Enterprise Singapore?
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47.
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How do I check which are the approved DTD that I have yet to submit the evaluation form?
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48.
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What happens if I did not follow-up with an Evaluation Form?
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49.
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How do I submit an evaluation form?
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50.
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If we are currently enjoying some pioneer incentives, are we eligible for the Double Tax Deduction Scheme?
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51.
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What are the list of incentives that falls under the Economic Expansion Incentive Act (EEIA)?
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52.
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Guidelines - Enhancing the Double Tax Deduction for Internationalisation Scheme?
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PRODUCT OVERVIEW
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1.
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What is Double Tax Deduction (DTD)?
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The Double Tax Deduction Scheme for Internationalisation (DTD) aims to encourage Singapore companies to expand overseas. It allows
approved companies to deduct against their taxable income, twice the qualifying expenses incurred for qualifying activities.
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2.
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What are the qualifying activities supported under DTD?
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• Participation in overseas trade fairs/missions.
• Participation in local trade fairs that have been approved by Enterprise Singapore or STB.
• Setting up of overseas marketing offices (OMO).
• Master licensing and franchising.
• Advertising in approved local publications.
• Printing of corporate brochures/catalogues for distribution in overseas markets.
• Engaging in market development activities:
- Market survey
- Feasibility study
- Advertising campaign
- Promotional campaign
- Packaging for exports
- Certification of products.
• Engaging in overseas pre-investment activities:
- Investment feasibility/due diligence studies
- Investment study missions
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3.
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What eligibility criteria are needed to apply for DTD?
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Singapore registered companies or companies that have a permanent establishment in Singapore with the primary purpose of promoting the trading of goods
or provision of services are eligible to apply for DTD.
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4.
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Can companies participating in exhibitions held in Singapore but targetted at an international audience
be supported under DTD?
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Companies can apply for DTD if the local trade fairs have been approved by Enterprise Singapore or STB. Businesses may refer to the website
at https://www.enterprisesg.gov.sg/events/imap or email to STB_Incentives@stb.gov.sg for a list of local trade fairs approved by Enterprise Singapore or STB.
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5.
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For participation in overseas trade shows, can we register the booth under our subsidiary name?
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Unless there are any specific regulations or requirements by the event organiser, the registration should be under the Singapore DTD applicant company.
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6.
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If my company had previously made a trip to Mexico supported under DTD and would like to make another trip there, would Enterprise Singapore
still support my application?
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DTD support can be considered for subsequent trips to the same country if the objectives are to introduce new products/services,
target at different customers in another city in the country, follow-up with potential customers.
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7.
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Can partners of firms apply for overseas business development and investment trips under DTD?
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Partners of firms can apply for overseas business development and investment trips under DTD. For participation in overseas conferences and seminars as
speakers, these events must be attended by participants from other firms/companies and with the purpose of acquiring business leads and contacts. If the
event is primarily training in nature (notwithstanding some networking functions for the trainees with business representatives), the event will not qualify
for DTD.
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8.
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My company has participated in an overseas trade show in Thailand. However for logistics convenience, the organizer had billed
the payment to our subsidiary office in Thailand. Can we then claim for DTD?
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The DTD applicant company would need to provide documentary evidences that they have incurred and paid the eligible expenses even
though these were billed to the subsidiary office overseas
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9.
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Can we claim DTD for overseas event if we arranged for our subsidiary to manage the event on our behalf?
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The DTD applicant company would need to provide documentary evidences that they have incurred and paid the eligible expenses even
though they have arranged for the subsidiary to manage the event on their behalf. However there would be no support for airfare, accommodation and subsistence
allowance since no representatives from Singapore has attended the event.
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10.
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Is the supported amount indicated in the DTD support letter a cash grant?
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The amount given in the DTD support letter is a tax relief.
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11.
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If my company is featured as a promotional participant of a mega event & is required to pay the event organizer in sponsorship
fees for the promotional activity, can I also qualify for the DTD incentive?
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Yes, we can support the sponsorship fee provided it is paid to the event organiser for broadcast which includes the advertisement
of his goods or services. However the sponsorship fee will need to exclude items related/used as “prize money”.
The DTD applicant company would need to provide documentary evidences e.g. promotional agreement between the company & the event organiser.
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12.
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My trade show in Germany starts on 15 May to 21 May 2011. I need to be earlier at the show to see to the arrangements of the booth
with the foreign vendors before the event. Can I claim for 17 May to 22 May 2011?
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Yes, as Enterprise Singapore can support the company arriving 2 days earlier before the show and 1 day after the show.
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13.
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With the enhanced DTD how does a business claim double tax deduction under the DTD scheme in its tax computation&what documents
do I need to submit to IRAS?
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There is no change to the existing procedure for tax filing by businesses. Businesses are not required to submit upfront documentation
to IRAS for expenditure not exceeding the $100,000 threshold. However, as with other business expenses, businesses are required to maintain documentation
to provide proof of their expenditure and the purpose of that expenditure. Such documentation include the purpose and itinerary of the trip, list of companies
met, invoices and receipts of the qualifying expenses.
Illustration showing how a business may claim for double tax deduction under the DTD scheme in its tax computation
Assume a company’s net profit as per accounts is $500,000 and it is eligible to claim a further tax deduction on its marketing expenses of $140,000 under
section 14B of the Income Tax Act; a. Prior to 1 Apr 12, the tax computation prepared and submitted to
IRAS by the company would be as follows:
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Profit/(Loss) as per accounts *
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$500,000
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Add/Less: Disallowable / (Further) Deductions - Further deductions under S14B (with approval from Enterprise Singapore/STB)**
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($140,000)
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Adjusted Profit/(Loss)
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$360,000
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* Marketing expense of $140,000 allowable under section 14(1) of the Income Tax Act already taken into account
in arriving at the profit figure of $500,000.
** Schedule of qualifying activities and expenses and the relevant supporting documents from Enterprise Singapore/ STB for the full $140,000 should be submitted
for IRAS’ verification.
b. With effect from 1 Apr 12, if company had sought Enterprise Singapore/STB’s approval for $50,000 of the $140,000
marketing expenses incurred: the tax computation prepared and submitted to IRAS would now be reflected as follows:
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Profit/(Loss) as per accounts *
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$500,000
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Add/Less: Disallowable / (Further) Deductions
- Further deductions under S14B ***
? No approval from Enterprise Singapore/ STB required
? Approval from Enterprise Singapore / STB obtained
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($90,000)
($50,000)
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($140,000)
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Adjusted Profit/(Loss)
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$360,000
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*** Schedules of qualifying activities and expenses for the full $140,000 (showing breakdown between automatic and
approval claims) should still be submitted to IRAS for verification. In addition, the relevant supporting documents from Enterprise Singapore/ STB for the $50,000
should also be submitted.
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Automatic DTD
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14.
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Why is approval from Enterprise Singapore/STB no longer required for only these four categories of activities?
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Approval for these four categories is no longer required as they are common activities undertaken especially by SMEs on their overseas
expansion. Claims for such activities currently form the bulk of applications received by Enterprise Singapore/ STB. The proposed change will help to ease tax
compliance as the qualifying activities are less complex and the quantum involved is lower.
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15.
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Why is approval required for the other qualifying activities under the scheme?
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The other qualifying activities are less common. They also include activities that are more complex and therefore require more evaluation
efforts by Enterprise Singapore and STB (e.g. expenditure incurred in setting up an overseas marketing office).
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16.
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Why is there the need to impose a cap of $100,000 per company per YA on qualifying expenditure where no approval is required?
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The cap of $100,000 ensures that the proposed change is targeted at SMEs, which we are encouraging to internationalise. The proposed
cap of $100,000 is more than sufficient based on the current claim profile where the majority of claimants (>90%) incur less than $100,000 of qualifying
expenditure on the four qualifying activities.
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17.
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Who are eligible to claim further double tax deductions without having to seek approval from Enterprise Singapore/ STB?
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All businesses will qualify, subject to the existing conditions of the scheme. For example, they must not be enjoying any tax incentives
granted under the SITA or EEIA.
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18.
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What is the difference between overseas business development trips/missions and overseas investment study trips/missions?
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Overseas business development trips/missions refer to trips that businesses undertake to do any one of the following:
- promote new products and services in new target markets;
- identify new customers for existing products and services;
- promote new products and services to existing customers; and
- promote existing products and services to existing markets to increase market share.
Overseas investment study trips/missions refer to trips that businesses undertake to assess the feasibility of an investment. For
example, Company X plans to acquire a target in Germany. If the acquisition is successful, Company X would be able to gain a global 20% market share.
To assess the suitability of the target, Company X’s Business Development Manager would need to make 6 trips over the next 3 months to Germany. Company
X may claim DTD on the airfare and hotel accommodation incurred for these 6 trips.
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Qualifying Expenses
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19.
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What are the qualifying expenditure available for double tax deduction without the need for approval from Enterprise Singapore/STB on
the 4 qualifying activities up to the first $100K per Year of Assessment?
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The list of qualifying expenses is set out below:
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Qualifying Activity
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Qualifying Expenses
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Participation in business development or investment study trips/missions (up to 2 employees per trip/mission)
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- Airfare*
- Hotel Accommodation & Meals
- Overseas Transportation
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Participation in overseas trade fairs (up to 2 employees2 per fair)
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- Stand Rental
- Stand Design/Decoration
- Stand Construction
- Production of Corporate Brochures or Catalogues
- Freighting of Exhibits
- Insurance of Exhibits
- Airfare*
- Hotel Accommodation & Meals
- Overseas Transportation
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Participation in local trade fairs that have been approved by Enterprise Singapore or STB
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- Stand Rental
- Stand Design/Decoration
- Stand Construction
- Production of Corporate Brochures or Catalogues
- Insurance of Exhibits
- Cost of inviting up to 2 overseas buyers
- Airfare*
- Hotel Accommodation & Meals for the duration of the fair
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Airfare includes airport tax, fuel surcharge, airfare transaction fees. It excludes GST/ CESS/ Carrier Surcharge/ VAT/ Bank
Charges/ Insurance/ Amendment Fees/ Excess Baggage. Qualifying expenses on airfare, hotel accommodation & subsistence allowances
(meals only) are based on an incurred basis. The support is up to a max of 2 company’s representatives per trip.
For example, where a company sends 3 of its employees to participate in an overseas trade fair/mission, DTD will be granted in respect of 2 employees.
Expenses incurred by the company on the third employee will continue to enjoy a 100% deduction (provided they are incurred for the production of income
and hence fall within Section 14 of the ITA)
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20.
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Does qualifying expenditure approved before the effective date of change (1 April 2012) count towards the cap of $100,000?
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No, expenditure approved prior to 1 April 2012 will not reduce the $100,000 capavailable to businesses. The cap of $100,000 on qualifying expenditure
will applyto expenditure incurred from 1st April 2012 to 31 March 2016 (both dates inclusive).Example 1:
Company A’s financial year ends on 31 Dec. In 2012, Company A participated in thefollowing qualifying activities:
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Month
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Qualifying Activity
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Qualifying expenses incurred ($)
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Jan 2012
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Overseas business development trip 1
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# 14,000
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Mar 2012
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Enterprise Singapore-supported overseas trade fair
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# 25,000
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Jun 2012
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Approved local trade fair
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30,000
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Aug 2012
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Overseas business development trip 2
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5,000
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Oct 2012
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Enterprise Singapore-supported overseas trade fair
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35,000
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# Company A was granted approval for DTD by Enterprise Singapore on the qualifying expenses incurred on the respective activities conducted
between January and March, before the effective date of 1 Apr 2012. For Company A's YA2013 tax submission, the expenses eligible
for DTD are:
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Expenses qualifying for DTD ($)
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Approved claims from Enterprise Singapore/STB
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14,000
25,000
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39,000
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Claims without approval from Enterprise Singapore/STB
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30,000
5,000
35,000
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70,000
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Total
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109,000
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21.
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What happens if I embark on a qualifying activity from 1 April 2012 (without applying for approval from Enterprise Singapore/ STB) and
find that the expenditure incurred for the qualifying activity exceeds the $100,000 cap on qualifying expenditure when the activity is completed?
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Generally, businesses are advised to plan and track their expenditure well and seek approval early to avoid being denied their claim
for their expenses. If businesses are unsure if their total qualifying expenses will exceed $100,000, they can continue to submit their applications to
Enterprise Singapore (via their incentive portal) and STB (manual application) for approval before commencing on any of the qualifying activity.
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22.
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My next activity will cause my cumulative amount of expenditure on which DTD is claimed to exceed $100,000. I will therefore need
to submit an application to Enterprise Singapore/ STB. Do I make the application only for the qualifying expenditure in excess of $100,000 or for the entire qualifying
expenditure incurred for the activity?
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Businesses should make an application for the entire qualifying expenditure incurred for that activity. For example, if the activity
consists of a one-week trip to various cities, the application should be in respect of qualifying expenses on the entire trip, rather than selected parts
of the trip. Example 2
Between July 2012 and June 2013, Company B participated in the following qualifying activities:
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Month
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Qualifying Activity
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Qualifying expenses incurred ($)
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Jul 2012
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Overseas business development trip 1
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6,000
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Sep 2012
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Overseas business development trip 2
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5,000
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Nov 2012
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Approved local trade fair
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40,000
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Feb 2013
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Overseas business development trip 3
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3,500
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Apr 2013
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Enterprise-supported overseas trade fair 2
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35,000
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May 2013
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Overseas business development trip 4
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7,000
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Jun 2013
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Overseas business development trip 5
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# 5,500
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# Company B was granted approval for DTD by Enterprise Singapore on the qualifying expensesincurred on Overseas business development trip 5. For Company B’s YA2014
tax submission,the expenses qualifying for DTD are:
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Expenses qualifying for DTD ($)
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Approved claims from Enterprise Singapore/STB
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5,500
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5,500
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Claims without approval from Enterprise Singapore/STB
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6,000
5,000
40,000
3,500
35,000
7,000
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96,500
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Total
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102,000
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Note: Had Company B not sought approval from Enterprise Singapore for DTDexpenses of $5,500 on Overseas business development trip 5, only $3,500
of the qualifyingtrip expenses can be claimed without the need for approval from Enterprise Singapore/STB.The remaining $2,000 of trip expenses will not enjoy
the DTD (as the amount of DTDclaimed without approval has exceeded the $100,000 cap).
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23.
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I have only utilised $70,000 under the enhanced scheme. Can I carry forward the unutilised part of $30,000 to next year?
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No, if a business is unable to fully utilise the cap of $100,000 for a YA, it cannot bring forward the unutilised part to the next
YA.
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24.
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My accounting year ends in 30 June 2012, and there are only 3 months between the effective date of 1 April 2012 for the $100,000
cap and 30 June 2012. Would the cap of $100,000 be prorated when I submit my YA2013 tax returns? Could a concession be made for me to carry forward any
unutilised part of the $100,000 cap?
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The cap of $100,000 would not be prorated for the 2012 accounting year ending 30 June 2012. In addition, any unutilised part of
the $100,000 cap cannot be brought forward to the next YA.
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25.
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Where can I find the Guidelines for the automatic DTD?
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The Guidelines for the automatic DTD can be found at ANNEX A.
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26.
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What are the other qualifying activities and expenditure available for double taxdeduction?
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The list of other qualifying expenses is set out below:
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Qualifying Activity
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Qualifying Expenses
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Market Survey/Feasibility Study
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• Third-Party Consultancy Fees
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Investment Feasibility/Due Diligence Study
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• Third -Party Consultancy Fees
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Design of Packaging for Overseas Markets
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• Third Party Consultancy Fees
• Cost of prototype production
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Product/Service Certification
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• Cost of preliminary assessment
• Cost of application and issuance of certification
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Overseas Advertising Campaign
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• Third -Party Consultancy Fees
• Cost of purchasing advertising space
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Overseas Promotional Campaign
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• Third Party Consultancy Fees
• Costs associated with in-store promotions/ sales campaign
• Costs associated with promotional roadshows/ seminars
• Costs associated with direct mailing campaigns
• Airfares *
• Hotel Accommodation and meals
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Master Licensing & Franchising
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• Third -Party Consultancy Fees
• Legal Fees for the development of the licensing/franchising agreement
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Overseas Trade Office
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• Basic salary for OMO representative (Singaporean/PR only)
• Rental of accommodation
• Rental of office premises & equipment
• Maintenance of office facilities
• Rental and maintenance of vehicle
• Telecommunication charges/postage
• Stationery and other office supplies
• Airfares*
• Hotel accommodation & meals
• Cost of Advertising/Promotional Campaign
• Maintenance of Showroom/Display Area
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Advertising in Approved Local Trade Publication
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• Cost of advertising space
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Production of Corporate Brochures for Overseas Distribution
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• Third -Party Consultancy Fees
• Art Work
• Colour Separation & Typesetting
• Copy-writing
• Cost of Design
• Photography
• Printing production cost
• Translation
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* Airfare includes airport tax, fuel surcharge, airfare transaction fees and visafees. It excludes GST/ CESS/ Carrier Surcharge/ VAT/ Bank Charges/ Insurance/
AmendmentFees/ Excess Baggage. Qualifying expenses on airfare, hotel accommodation &subsistence allowances (meals only) are based on an incurred basis.
The supportis up to a max of 2 company’s representatives per trip.
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27.
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Company has been invited to receive an award from an overseas organiser. Can the travelling expenses be supported under DTD?
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No, as DTD is meant to help Singapore companies develop and expand their overseas markets.
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28.
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Can we have examples of non-eligible expenses not supportable under DTD?
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Non-eligible expenses include out-of-pocket expenses, telecommunication cost, general software e.g. Microsoft Word, GST, bank interest,
purchase of fixed assets, souvenirs, cash incentive, sponsorships, freebies, food and beverages for staff, printing of business cards.
This list is not exhaustive
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Online Application DTD
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29.
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How do I submit my application to Enterprise Singapore via the DTD incentive portal?
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Step 1: Complete Organisation Profile and User Profile (for first-time applicants only).
Step 2: Click on "Applications" tab and select the appropriate activity under which you are applying
and fill in all the relevant fields accordingly. In order to obtain a prompt reply on the application from Enterprise Singapore, please do not leave any mandatory fields
blank.
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30.
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How do I check if my application has been submitted to Enterprise Singapore?
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From the “DashBoard” under “Submitted Application” you can check the “Status” of the application which you have submitted to Enterprise Singapore.
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31.
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Do I need to complete the organisation profile for repeat applications?
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The organisation profile is only required for first time DTD applicants. You will need to update the organisation profile at least
once a year usually for the 1st application efile in a new year.
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32.
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Is there a limit to how many applications a company may submit for DTD?
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There is no limit to the number of DTD applications.
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33.
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Does the company need to submit supporting documents for DTD applications?
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Companies do not need to submit supporting documents e.g. quotation as part of the application. However these should be made available
to Enterprise Singapore upon request.
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34.
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What do I do with the Letter of Support? Do I have to inform IRAS?
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For the activity supported under DTD by Enterprise Singapore, you would need to submit the Letter of Support. All other relevant supporting
documents (e.g. invoices, receipts etc), company should compile and made available to IRAS upon request.
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35.
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How do I withdraw an application that has been submitted to Enterprise Singapore?
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Follow the steps below to withdraw an application that has been submitted to Enterprise Singapore.
1. From the Submitted Application of Dashboard, click on the hyperlinked Application reference number of the DTD application form. The DTD application
form will be displayed.
2. Click to select Withdraw. A dialog window will be displayed.
3. Enter the reason for returning the form and click on Submit. The DTD application form will be withdrawn and an email notification will be sent out
informing of the withdrawal.
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36.
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Can I take changes when I have already submitted the application to Enterprise Singapore?
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To make changes to an application that has been submitted to Enterprise Singapore, you would need to withdraw the original application and
re-submit another application before the commencement of the activity.
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37.
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Will I receive any notification from Enterprise Singapore after my DTD application is approved?
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If your application is supported by Enterprise Singapore, you will receive an “Approval-in-Principle (AIP)” email notification from Enterprise Singapore.
After the activity has been implemented, you would need to submit an Evaluation Form. Once your Evaluation Form is approved by Enterprise Singapore, you will receive an
email notification. You may then download the Letter of Support (LOS) to be submitted together with your annual income tax return. The LOS can be downloaded
from the “Official Documents/Letters” tab of the application form in the Enterprise Singapore incentive portal. If your application is not
supported, you will be notified via email. You may download the Letter of Rejection (LOR) from the “Official Documents / Letters” tab of the application
form for record.
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38.
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What is Approved-In-Principle (AIP)?
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While Enterprise Singapore supports the application (AIP), the final claims are subject to company submitting the necessary documents to IRAS to determine
the final tax claimed allowed for the event.
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39.
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How do I search for a DTD application form which I have submitted?
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To search for a DTD application form submitted in the Enterprise Singapore incentive portal, please
follow the steps below.
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- Click on [Search Application] from the menu bar. The [Search Application]
page will be displayed.
- Enter the value on any of the search criteria and click on [Search]. The application form(s), which matches the search criteria, will be displayed on
the search results table.
- Click on the hyperlinked Application Reference Number of the DTD application form.
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40.
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While I was registering my new company, I encountered the error message “Organization already registered. Please contact <Person’s
Name> for details”. What should I do?
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This error message indicates that your company has already been registered in the Enterprise Singapore Incentive Portal. If you want to access the
Enterprise Singapore Incentive Portal, you would need to contact the person mentioned as he/she is the Company Administrator for your company.
He/she will be able to add you as a company user in the DTD system.
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41.
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What do I do if my colleague’s name which is in the User Profile has already resigned?
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If the User has already resigned or no longer have rights to access the DTD system in the Enterprise Singapore Incentive Portal, please request your
Company Administrator to deactivate the User Account. This is to prevent unauthorised access to the incentive portal. The steps to deactivate a user are
as follows:
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- Click on “User Profiles” from the Menu Bar. The List of Users page will be displayed.
- Click on “Edit”. The Edit User dialog window will be displayed.
- Under status, click “Inactive” radio button.
- Click on “Save”. The user will be deactivated immediately. User that has been deactivated will not be able to login to the IncentivePortal.
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42.
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Can I print my DTD application?
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You would need to save our application at least once before the “Print” icon is made available at the top left hand corner of the
form.
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43.
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What do I do if my colleague who has a “saved as draft” DTD application resigned prior to the submission of the draft application?
Can the Covering Officer submit on his/her behalf?
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For all “saved as draft” applications, the covering officer will not be able to view the applications on the dashboard. The covering officer will need to do a “SEARCH” to retrieve the “DRAFT” application, complete the form and submit
to Enterprise Singapore.
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44.
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When I tried logging into the DTD incentive portal using my SingPass credentials, there was an error message “login fail”. I tried logging in a second time but system keeps prompting me “login fail”. What do I do?
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You have experienced difficulty logging into the system as you may have left the SingPass login page idle in the past 5 min.
The SingPass login page has a time lapse of 5 min.
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45.
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How do I register as a DTD user for multiple companies?
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To register as a DTD user for multiple companies, you would need to ensure that the NRIC
and email address are the same as those indicated in the other companies.
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Evaluation Form
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46.
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Must I submit the Evaluation Form to Enterprise Singapore?
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For all Enterprise Singapore approved application, company has to submit the Evaluation Form after the activity has been completed so that Enterprise Singapore can
issue the Letter of Support for your claims with IRAS.
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47.
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How do I check which are the approved DTD that I have yet to submit the evaluation form?
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Company can click on the “Application Forms” from the Menu bar. The Application Forms page will be displayed.Click on the Evaluation
Form link. The My Submitted Applications – Pending Evaluation page will be displayed. This page will display all the approved application(s) that is pending
evaluation submission.
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48.
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What happens if I did not follow-up with an Evaluation Form?
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You will not be able to receive the Letter of Support if you do not submit an Evaluation Form after the event.
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49.
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How do I submit an evaluation form?
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Click on the Application Forms from the Menu bar.
The Application forms page will be displayed. Click on the Evaluation Form link. The My Submitted Applications – Pending Evaluation page will be displayed.
This page will display all the approved application(s) that is pending evaluation submission. Click on the Application Reference Number. The Evaluation
Form will be displayed.
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Declaration
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50.
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If we are currently enjoying some pioneer incentives, are we eligible for the Double Tax Deduction Scheme?
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Pioneer Incentive falls under the Economic Expansion Incentives Act (EEIA). Companies that are currently enjoying any incentives
under the Economic Expansion Incentives Act are not eligible for DTD.
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51.
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What are the list of incentives that falls under the Economic Expansion Incentive Act (EEIA)?
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The EEIA covers a range of tax incentives that is updated periodically. Currently, it covers:
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- PioneerIncentive
- Development & Expansion Incentive
- Export of Service Incentive
- Foreign loans for productive equipment
- Royalties, fees and development contributions
- Investment Allowances
- Overseas Enterprise Singapore Incentive
- Technopreneur Investment Incentive
- Integrated Industrial capital allowances
- Research and Development and Intellectual Property Management Hub
- Global Trader Programme
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ANNEX A
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52.
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Guidelines - Enhancing the Double Tax Deduction for InternationalisationScheme
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1. Background
Currently businesses may claim up to 200% tax deduction on qualifying expenditure incurred on a range of qualifying market expansion
and investment development activities. The claims are granted on an approval basis by Enterprise
Singapore or Singapore Tourism Board (“STB”).
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2. Budget 2012 changes
In Budget 2012, the Minister for Finance enhanced the Double Tax Deduction for Internationalisation scheme to further encourage
our SMEs to venture abroad, and reduce administrative burden on businesses. Under the enhancement, tax deduction of up to 200% may be allowed on qualifying
expenditure, up to $100,000 per Year of Assessment (“YA”), incurred on four selected activities under the current
scheme, without the need for approval from Enterprise Singapore or STB. Enterprise Singapore or STB will continue to approve claims,
on a case-by-case basis, made by businesses that require larger funding support in excess of $100,000, or on qualifying expenditure incurred on other
qualifying activities.
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3. Who can qualify
To qualify for the DTD scheme, businesses must be registered in Singapore or have a permanent establishment in Singapore with the
primary purpose of promoting the trading of goods or provision of services and not be enjoying any other forms of tax incentives granted under the Singapore
Income Tax Act or Economic Expansion Incentives (Relief from Income Tax) Act.
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4. What activities are covered
Businesses undertaking any of the following four selected activities (collectively known as “qualifying activities”) may claim double
tax deduction on qualifying expenditure incurred in respect of:
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- Participationin overseas business development trips;
- Participationin overseas trade fairs /missions;
- Participationin local trade fairs that have been approved by Enterprise Singapore or STB; and
- Participationin overseas investment study trips/missions
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Participation in overseas business development trips
Overseas business development trips refer to those that businesses undertake todo any of the following:
(a) promote new products and services in new target markets;
(b) identify new customers for existing products and services;
(c) promote new products and services to existing customers; and
(d) promote existing products and services to existing markets to increasemarket share
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Participation in overseas trade fairs/missions Overseas trade fairs/missions refer to thosethat
businesses participate in or undertake to promote their products or servicesto expand their overseas markets.
Participation in local trade fairs
that have been approved by Enterprise Singapore orSTB
Businesses may refer to the website at https://www.enterprisesg.gov.sg/events/imapor email to STB_Incentives@stb.gov.sgfor
a list of local trade fairs approved by Enterprise Singapore or STB.
Participationin investment study trips/ missions
Overseas investment study trips/missions refer to those that businesses undertake to assess the feasibility of an
overseas investment.
Example 1: Company X plans to acquire a target in Germany. If the acquisition is successful, Company X would be able to gain a global
20% market share. To assess the suitability of the target, Company X’s Business Development Manager would need to make 6 trips over the next 3 months
to Germany. Company X may claim DTD on the costs of airfare and hotel accommodation incurred for these 6 trips.
Example 2: Company Y’s principal business is in the trading of industrial tools for its principals located in Japan. Company Y now
plans to invest in a manufacturing facility in Indonesia to create its own Singapore brand of industrial tools for distribution to China. Company Y’s
Financial Controller would be making several trips over the next 3 months to Indonesia to source for suitable location and assess the size of the overseas
investment venture. Company Y may claim DTD on the costs of airfare and hotel accommodation incurred for these trips by its Financial Controller.
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5. Qualifying expenditure available for double tax deduction without the needfor approval from Enterprise Singapore/STB
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The qualifying expenditure incurred in respect of any of the qualifying activities as mentioned in paragraph 4 above can qualify
for tax deductions up to 200%, up to $100,000 per YA, without approval from Enterprise Singapore or STB.
Double tax deduction is given on the qualifying expenses not supported by grants, i.e. qualifying expenses exclude
those that are already incentivised under any other government financial assistance schemes (e.g. International Marketing Assistance Programme ).
Qualifying expenses The list of qualifying expenses is set out below:
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Qualifying Activity
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Qualifying Expenses
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Participation in business development or investment study trips/missions Participation in business
development or investment study trips/missions
(up to 2 employees per trip/mission)
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- Airfare*
- Hotel Accommodation & Meals
- Overseas Transportation
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Participation in overseas trade fairs
(up to 2 employees2 per fair)
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- Stand Rental
- Stand Design/Decoration
- Stand Construction
- Production of Corporate Brochures or Catalogues
- Freighting of Exhibits
- Insurance of Exhibits
- Airfare*
- Hotel Accommodation & Meals
- Overseas Transportation
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Participation in local trade fairs that have been approved by Enterprise Singapore or STB
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- Stand Rental
- Stand Design/Decoration
- Stand Construction
- Production of Corporate Brochures or Catalogues
- Insurance of Exhibits
- Cost of inviting up to 2 overseas buyers
- Airfare*
- Hotel Accommodation & Meals for theduration of the fair
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* Airfare includes airport tax, fuel surcharge, airfare transaction fees. It excludes GST/ CESS/ Carrier Surcharge/ VAT/ Bank
Charges/ Insurance/ Amendment Fees/ Excess Baggage.
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Effective date The enhanced changes are applicable in respect of qualifying expenditure incurred
from 1 April 2012 to 31 March 2016 (both dates inclusive).
7 Submission of documents to IRAS
Under the enhanced changes, businesses are notrequired to submit upfront documentation for expenditure not exceeding the $100,000threshold.
However, as with other business expenses, businesses are still requiredto maintain documentation to provide proof of their expenditure and their purpose,should
there be queries from IRAS. Such documentation include the purpose and itineraryof the trip, list of companies met, invoices and receipts of the qualifying
expenseslisted in the table in paragraph 5 above.
8 Submitting applications to Enterprise Singapore and STB Businesses are required to continue to submit
applications to Enterprise Singapore and STB to enjoy double tax deduction on qualifying expenditure incurred on the other qualifying activities under the scheme,
namely:
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- Conduct overseas market survey/ feasibility study
- Set up overseas trade office
- Overseas advertising and promotional campaigns
- Advertise in approved local trade publications
- Production of corporate brochures
- Design ofproduct packaging for overseas markets
- Master licensingand franchising
- Product certificationfor overseas markets
- Investmentfeasibility / due diligence studies
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In addition, Enterprise Singapore and STB will continue to approve claims, on a case-by-case basis, made by businesses that require larger
funding support in excess of $100,000 for qualifying activities as mentioned in paragraph 4 above. Businesses are advised
to plan and track their expenditure well and seek approval early to avoid being denied their claim for their expenses. If businesses are unsure if their
total qualifying expenses will exceed $100,000, they can continue to submit their applications to Enterprise Singapore (via their incentive portal) and STB (manual
application) for approval before commencing on any of the qualifying activity.
For applications to Enterprise Singapore, please submit via the DTD
Incentive Portal at
https://ie.enterprisesg.gov.sg/E-Services/Double-Tax-Deduction-for-Internationalisation
using SingPass before commencement of the project. For applications to STB, pleasesubmit
them via hardcopy available from their corporate website at www.stb.gov.sg.
For qualifying expenditure that have been approved by Enterprise Singapore or STB, businesses should continue to submit the letter of support
or letter of approval to IRAS when filing the business’s annual income tax returns.
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