Double Tax Deduction – Internationalisation Scheme
[Singapore] Currently businesses may claim up to 200% tax deduction on qualifying expenditure incurred on a range of qualifying market expansion and investment development activities. Expenditures up to $100,000 per Year of Assessment (“YA”), incurred on four selected activities under the current scheme, without the need for approval from IE Singapore or STB.
IE 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.
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:
- Participation in overseas business development trips;
- Participation in overseas trade fairs /missions;
- Participation in local trade fairs that have been approved by IE or STB; and
- Participation in overseas investment study trips/missions
Announced in Budget 2016, this scheme is extended to 31 March 2020 (previously scheduled to lapse after 31 March 2016). All other conditions of the scheme remain unchanged. IE Singapore will release further details of the change by June 2016.