Singapore companies expanding overseas often overlook one of the most generous tax reliefs available to them: the Double Tax Deduction for Internationalisation, or DTDi. Administered by Enterprise Singapore (with a tourism-sector equivalent under the Singapore Tourism Board), the scheme lets qualifying businesses deduct 200% of eligible expansion costs against their taxable income, effectively doubling the tax value of money you were probably going to spend anyway on breaking into new markets.
This guide explains what DTDi is, what changed in Budget 2026, which activities qualify, how the automatic claim works, and how to make sure you actually capture the relief when you file. If you are mapping out your wider expansion funding, read it alongside our guide to choosing between EDG, PSG and MRA grants.
What is the Double Tax Deduction for Internationalisation?
DTDi is a tax incentive, not a cash grant. For every dollar of qualifying internationalisation expense, you claim two dollars of tax deduction. At the headline 17% corporate tax rate, a S$100,000 qualifying spend that would normally shave S$17,000 off your tax bill instead reduces it by up to S$34,000, because you deduct S$200,000. That is a material improvement to the economics of going regional or global.
The scheme deliberately targets the costs of seeking and establishing overseas business, the market development and investment activities that precede actual revenue from a new market.
What changed in Budget 2026
The most important recent development is the increase in the automatic claim cap. Historically, companies could self-claim the 200% deduction on up to S$150,000 of qualifying expenditure per Year of Assessment (YA) without seeking prior approval. This S$150,000 automatic cap applies for qualifying expenses incurred up to YA 2026.
Following Budget 2026, the automatic cap will rise to S$400,000 per YA with effect from YA 2027. Beyond that ceiling, expenses still qualify, but you must apply to Enterprise Singapore for approval before the project begins. In short, from YA 2027 far more of a typical expansion budget can be claimed without a formal application.
| Period | Automatic claim cap (no approval needed) | Above the cap |
|---|---|---|
| Up to YA 2026 | S$150,000 per YA | Requires EnterpriseSG approval |
| From YA 2027 | S$400,000 per YA | Requires EnterpriseSG approval |
Which activities qualify
DTDi covers a broad spread of market-entry and market-development activities. The main categories eligible for the automatic deduction include:
Market development trips and missions – overseas business development and investment study trips, and participation in approved overseas trade missions.
Market research and feasibility studies – overseas market surveys and feasibility studies to assess a new market.
Trade fairs and exhibitions – participation in overseas trade fairs, and in approved local trade fairs.
Promotion and advertising – overseas advertising and promotional campaigns, and the design of packaging for overseas markets.
A small number of activities, notably the setting up of an overseas Trade Office and certain e-commerce campaigns, sit outside the automatic route and still require an application to Enterprise Singapore.
Qualifying expenses within each activity
Within an eligible activity, the deductible costs typically include airfare and accommodation for a capped number of employees, exhibition stand rental, market survey and consultancy fees, and advertising production and placement. Enterprise Singapore and IRAS publish specific caps and conditions per activity, so keep the receipts, itineraries and purpose of each trip well documented.
How to claim DTDi
For expenditure within the automatic cap
No prior approval is required. You simply claim the 200% deduction in your corporate income tax return (Form C or Form C-S) for the relevant YA, keeping supporting documentation on file in case IRAS asks for it. This is the route most SMEs use.
For expenditure above the cap or for approval-only activities
You must apply to Enterprise Singapore before the activity or project commences. Approval is not retrospective, so timing is everything; a great expansion project loses the enhanced deduction on the excess if you apply after the fact.
DTDi versus the MRA grant: use both
Companies frequently ask whether DTDi replaces the Market Readiness Assistance (MRA) grant. It does not. MRA gives a cash subsidy on eligible overseas set-up, promotion and business-matching costs, while DTDi gives a tax deduction. Used together, and subject to the rule that you cannot claim the same dollar twice, they materially lower the net cost of expansion. Our guides to the MRA grant and to stacking government support explain how to sequence them.
Practical tips to maximise the relief
Plan spending across YAs so you make full use of each year’s automatic cap; apply to Enterprise Singapore early where a large project will exceed the ceiling; keep a clean paper trail linking every cost to a qualifying activity and market; and coordinate DTDi with your overall corporate tax position, including any start-up or partial exemptions, so the deductions land where they are most valuable.
How Raffles Corporate Services can help
We help Singapore companies identify qualifying DTDi expenditure, decide when a project needs Enterprise Singapore approval, and fold the enhanced deduction into the annual tax computation so nothing is left on the table. Because we handle both the grants and the tax side, we can make sure MRA and DTDi work in tandem rather than colliding.
For scheme details, consult Enterprise Singapore and the Inland Revenue Authority of Singapore.
— The Editorial Team, Raffles Corporate Services