Double Tax Deduction for Internationalisation (DTDi) Singapore

What does DTDi support?

DTDi supports qualifying international market-expansion and investment-development expenditure under the DTDi activity schedule.

The incentive is intended for businesses promoting the trading of goods or provision of services internationally and undertaking a recognised qualifying activity.

Because DTDi is a tax deduction rather than a cash grant, the commercial benefit depends on the company's qualifying expenditure and Singapore tax position.

Who can apply?

Eligible businesses should:

• be tax resident in Singapore or have a permanent establishment in Singapore;
• incur qualifying expenditure primarily to promote the trading of goods or provision of services;
• undertake a qualifying internationalisation activity.

There is no local ownership requirement.

Additional requirement for companies already enjoying other tax incentives

Businesses already enjoying specified Singapore tax incentives may still qualify for DTDi, but must apply to Enterprise Singapore or the Singapore Tourism Board. Current Enterprise Singapore guidance also requires these businesses to have their global headquarters in Singapore, incur the expenses primarily for trading in goods or providing services, and have an intention to internationalise.

What benefit does DTDi provide?

DTDi provides a 200% tax deduction on qualifying expenditure.

From YA2027, most qualifying activities can be claimed automatically on the first S$400,000 of eligible expenditure per company per YA.

Expenditure above the automatic threshold and activities excluded from the automatic route may require Enterprise Singapore or Singapore Tourism Board approval, depending on the activity.

What expenditure can qualify?

The eligible base is qualifying international market-expansion and investment-development expenditure under the DTDi activity list.

Companies should assess the exact activity and expenditure against the official DTDi schedule before relying on the incentive rather than assuming that all overseas business-development expenditure qualifies.

Key conditions

From YA2027, most qualifying activities can use the automatic-claim route up to the S$400,000 expenditure cap.

Two important exceptions remain outside the automatic route:

• Overseas Trade Office activities;
• E-Commerce Campaigns.

Where pre-approval is required, the relevant application must be made before commencement of the activity. Companies already enjoying specified tax incentives should also confirm the additional headquarters and approval conditions before relying on DTDi.

When should you assess DTDi?

DTDi is available on a rolling basis.

For activities covered by the automatic route, the tax benefit is generally considered as part of the company's internationalisation expenditure and tax-claim process.

For activities requiring approval, DTDi should be assessed before the activity starts so that pre-approval requirements are not missed.

How does the application or claim process work?

The process depends on whether the activity falls within the automatic route.

A practical sequence is:

1. identify the internationalisation activity;
2. confirm that the expenditure is within the DTDi qualifying schedule;
3. determine whether automatic claim or pre-approval applies;
4. obtain approval before commencement where required;
5. retain supporting documentation for the tax claim;
6. claim the enhanced deduction through the applicable Singapore tax process.

Is DTDi relevant to your project?

DTDi is particularly relevant where a Singapore business is already committing expenditure to qualifying overseas market expansion and wants to optimise the tax treatment of that expenditure.

A weaker fit is an overseas activity that does not fall within the DTDi qualifying schedule or an activity requiring pre-approval that has already commenced without the required approval.

For companies also using EDGE Internationalisation, the broader funding strategy should consider the interaction between direct co-funding and tax-based support rather than treating each incentive in isolation.

How Reeve | R&D supports DTDi

Reeve | R&D can manage the incentive workstream—eligibility assessment, activity mapping, tax-benefit modelling, pre-approval assessment where required, documentation and coordination with Finance and tax teams—while the company remains the formal applicant or claimant where required by the programme.

Frequently asked questions

Is DTDi a grant?

No. DTDi is a tax incentive providing a 200% deduction on qualifying expenditure.

Does DTDi require local ownership?

No. There is no local ownership requirement.

What is the YA2027 automatic-claim cap?

From YA2027, most qualifying activities can use the automatic route for the first S$400,000 of eligible expenditure per company per YA.

Do all DTDi activities use the automatic route?

No. Overseas Trade Office and E-Commerce Campaigns remain outside the automatic route.

Can I seek approval after an activity requiring pre-approval has already started?

No. Where pre-approval is required, the relevant application must be made before commencement.

Related funding routes

• EDGE Internationalisation — for direct co-funding of eligible overseas expansion activities.
• Grant & Incentive Directory — to compare other internationalisation support.
• Grant Management — for structured incentive execution and documentation.

Official programme information: Enterprise Singapore — Double Tax Deduction for Internationalisation (DTDi)