Every multinational group needs somewhere to run its money: to pool cash across subsidiaries, manage foreign-exchange risk, place deposits, and lend to related companies. Singapore wants that somewhere to be here. The Finance and Treasury Centre (FTC) incentive, run by the Economic Development Board, rewards groups that base substantive treasury operations in Singapore with a concessionary tax rate on qualifying treasury income and relief from withholding tax on certain interest payments.
This guide explains what the FTC incentive is, the concessionary rate, what income and activities qualify, the withholding tax exemption, the conditions a company must meet, and how the incentive fits with Singapore’s other headquarters and trading schemes. It is general information rather than tax advice, so take professional guidance before applying.
What Is the Finance and Treasury Centre Incentive?
The FTC incentive is a targeted scheme administered by the Economic Development Board (EDB) to encourage companies to carry out corporate treasury functions from Singapore. An approved FTC enjoys a lower rate of tax on income from the qualifying treasury services it provides to its group, and on qualifying activities it carries out on its own account. The legal framework sits in the Income Tax Act 1947 and its subsidiary regulations on Singapore Statutes Online.
The Concessionary Tax Rate
An approved FTC pays a concessionary tax rate of 8% or 10% on qualifying income, against the prevailing headline corporate tax rate of 17%. The qualifying income covers fees and interest from qualifying services provided to approved network companies, and income from qualifying FTC activities carried out on the FTC’s own account using qualifying sources of funds. The exact rate and scope are set in the award.
FTC Incentive at a Glance
| Feature | Detail |
|---|---|
| Concessionary tax rate | 8% or 10% on qualifying income |
| Administered by | Economic Development Board (EDB) |
| Withholding tax | Exemption on interest on qualifying loans for FTC activities |
| Typical substance | Dedicated treasury team and meaningful annual business spending in Singapore |
| Scheme runs until | 31 December 2031 |
What Counts as Qualifying FTC Activity?
Qualifying FTC activities are the everyday functions of a group treasury. They typically include cash management and cash pooling for the group, corporate finance and advisory services to related companies, managing credit, liquidity, and foreign-exchange exposure, arranging and providing intercompany loans, and managing surplus funds through deposits and approved investments. The common thread is that the FTC provides these services to approved network companies within the group, or undertakes them on its own account with qualifying funds.
The Withholding Tax Exemption on Interest
Interest paid to a non-resident lender is ordinarily subject to Singapore withholding tax. To make it viable for an FTC to borrow in order to fund its treasury activities, the incentive grants a withholding tax exemption on interest payments made on certain loans that relate to the conduct of qualifying FTC services and activities. For payments made on or after 13 February 2026, the scope of this exemption is being expanded to include interest-like borrowing costs, broadening the range of funding arrangements that benefit. Companies weighing cross-border funding should also read our guide to the Approved Foreign Loan scheme, which offers separate withholding tax relief on interest.
Conditions and Substance
Like all of Singapore’s headline incentives, the FTC award is discretionary and conditional on real substance. EDB expects an approved FTC to run genuine treasury operations from Singapore, employ a dedicated team of experienced treasury professionals, and commit to meaningful annual business spending in the country. Applicants negotiate the headcount, spending, and qualifying-income commitments with EDB, and the award letter sets out the milestones the company must hit to keep the concession.
How the FTC Fits with Other Incentives
The FTC incentive rarely sits alone. Groups that centralise treasury in Singapore often also run regional headquarters and trading operations here, so the FTC is commonly paired with the schemes covered in our guides to Regional HQ and IHQ tax incentives and the Global Trader Programme. For a group making a broader investment commitment, the Refundable Investment Credit may also be relevant. Our Singapore corporate tax guide explains the headline position these concessions improve on.
Scheme Duration
The FTC incentive was due to lapse after 31 December 2026, but it has been extended to 31 December 2031, giving groups a longer runway to plan and establish their treasury operations in Singapore.
Frequently Asked Questions
What tax rate does an approved FTC pay?
A concessionary rate of 8% or 10% on qualifying income, compared with the 17% headline corporate tax rate.
Does the FTC need staff in Singapore?
Yes. EDB expects a dedicated team of experienced treasury professionals and substantive operations, not a shell arrangement.
How long is the incentive available?
The scheme has been extended and now runs until 31 December 2031.
Considering centralising your group treasury in Singapore? Raffles Corporate Services can help you structure the entity and prepare the groundwork for an EDB application.
— The Editorial Team, Raffles Corporate Services