Global Trader Programme (GTP) — concessionary tax — Costs and fees breakdown
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
The Global Trader Programme (GTP) is a concessionary-tax incentive administered by Enterprise Singapore that lets qualifying international trading companies pay corporate tax of 5% or 10% on qualifying trading income, instead of the prevailing 17% rate. It is designed for firms that base substantial physical trading, procurement, risk-management and logistics functions in Singapore and trade in approved commodities or products across borders.
What the Global Trader Programme is
The Global Trader Programme rewards traders who use Singapore as their strategic base for international trade. Qualifying income from offshore trades in approved products, derivatives hedging and structured commodity finance is taxed at a concessionary 5% or 10% rate for the award tenure, usually three or five years. The statutory framework for concessionary trading income sits within the Income Tax Act 1947, with Enterprise Singapore setting programme conditions. See the official guidance at www.customs.gov.sg.
Who it is for
The GTP suits established commodity and product traders in energy, metals, agri-commodities, and electronics with significant global turnover. It is not a starter incentive; applicants generally already run material trading volumes and want to consolidate them through a Singapore trading hub.
Eligibility and commitments
Enterprise Singapore evaluates each application against qualitative and quantitative commitments: annual turnover (often in the hundreds of millions of US dollars), local business spending, professional headcount in trading and support roles, and use of Singapore banking and logistics services. Applicants must demonstrate that key trading decisions and risk management occur in Singapore.
Costs, fees and timeline
Incorporating the trading entity costs S$750 to S$1,800 in professional fees plus the S$315 ACRA fee. GST registration, if applicable, is free but requires ongoing filing. Advisory fees to structure and negotiate a GTP award commonly run S$10,000 to S$30,000. There is no application filing fee. From engagement to award, allow 4 to 8 months. Annual reporting against turnover, spend and headcount commitments continues for the tenure of the award, and shortfalls can reduce or withdraw the concession.
Step-by-step process
Incorporate the Singapore entity and appoint a locally resident director under Section 145 of the Companies Act 1967. Build the trading substance: hire traders, set up treasury and hedging, and route trades through Singapore. Prepare the GTP business case with turnover forecasts and spend commitments. Submit to Enterprise Singapore and negotiate the rate and tenure. Receive the award letter, then file annual performance reports.
Common mistakes and gotchas
Traders often apply before building substance, or route only a token share of trades through Singapore. Others overlook the interaction with GST zero-rating and the physical-trade documentation Customs expects. Transfer-pricing documentation for related-party trades is essential; without it, IRAS may re-characterise margins.
Related guides across the Raffles group
- Section 13O vs 13U: Comparing Singapore’s Two Family Office Tax Incentive Schemes (2026) on Singapore Secretary Services.
- Training EP and Work Holiday Programme — Costs and fees breakdown on Little Big Employment Agency.
- Global Trader Programme (GTP) — concessionary tax — Step-by-step walkthrough.
Official references
FAQs
What tax rate does the GTP give?
Qualifying trading income is taxed at a concessionary 5% or 10%, compared with the standard 17% corporate rate.
Do I need physical goods flowing through Singapore?
Not necessarily physically, but you must demonstrate genuine trading substance, decision-making and risk management based in Singapore.
How long is the award?
Awards typically run three or five years, renewable subject to meeting the agreed commitments.
Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.