The Global Trader Programme (GTP) is a concessionary-tax incentive administered by Enterprise Singapore that lets qualifying international trading companies pay a reduced corporate tax rate on income from qualifying physical, brokering and derivative trades, in exchange for meeting business-spending, headcount and turnover commitments.
What the Global Trader Programme is
The Global Trader Programme is Singapore’s flagship incentive for commodity and product traders. Administered by Enterprise Singapore, it grants an approved company a concessionary corporate tax rate on qualifying income from international trading activities routed through Singapore.
The programme is designed to anchor genuine trading operations here: physical trade in commodities and products, brokering, and qualifying derivative trades used to manage price risk. The concessionary rate applies to qualifying income only, so accurate segregation of trade flows is central to the incentive.
Who the GTP is for
The programme suits established international traders setting up or expanding a Singapore trading desk, particularly in energy, agricultural commodities, metals, minerals and manufactured products. Applicants are expected to have a track record, a network of overseas counterparties, and the intention to base risk-taking trade decisions in Singapore.
Because most GTP entrants incorporate a fresh Singapore trading entity, it helps to settle the corporate structure and holding arrangements first. Our related guide on setting up and structuring a Singapore company for a foreign group is a useful starting point: Singapore Holding Company 2026: Tax Benefits, Structure and Setup Guide.
Eligibility and requirements checklist
GTP awards are tailored, but Enterprise Singapore typically looks for:
- A Singapore-incorporated and tax-resident trading company.
- Substantive trading activity performed in Singapore, including risk management and decision-making.
- Annual qualifying turnover and local business-spending commitments.
- Local professional headcount — traders, risk, operations and finance staff based here.
- Use of Singapore-based banking, logistics and professional services.
The trading and risk roles are usually filled by relocated professionals, so factor work-pass eligibility into the plan early. Our employment-pass walkthrough sets out the salary benchmarks and paperwork senior hires must meet: Singapore vs Hong Kong 2026: Work Pass, Tax, Cost of Living and PR Compared.
Cost, tax rate and timeline
The GTP concessionary rate has historically been offered at reduced levels below the headline corporate tax rate on qualifying trading income, with the award granted for a fixed renewable term (commonly around five years). Confirm the current concessionary rates and award tenure directly with Enterprise Singapore, as incentive parameters are reviewed from time to time.
There is no simple flat fee; the cost is the substance you commit to — local spending, salaries and infrastructure. Expect the application and negotiation to take several months from first engagement to award, so build the timeline into your set-up plan.
Income that falls outside the qualifying-trade definition is taxed at the prevailing headline rate, which makes clean accounting separation essential.
Step-by-step process
- Incorporate the Singapore trading entity and open local banking facilities.
- Prepare the business case: qualifying turnover forecast, product scope, counterparties and headcount plan.
- Engage Enterprise Singapore to discuss fit and commitments.
- Negotiate the concessionary rate, term and annual milestones.
- Accept the award and stand up the trading desk, risk function and support staff.
- Report qualifying income and commitment metrics each year.
GTP versus ordinary trading — the practical difference
A trading company that does not hold a GTP award pays the headline corporate tax rate on all its trading profit. Under a GTP award, qualifying trading income is taxed at the concessionary rate, while non-qualifying income continues at the headline rate. The value of the incentive therefore scales with the proportion of your profit that is genuinely qualifying, and with your trading volume.
This makes accurate trade capture and income classification the difference between a valuable incentive and an administrative headache. Your systems must be able to tag each trade, link hedges to the underlying qualifying trades, and produce a clean qualifying-income figure for the tax computation.
Building the substance Enterprise Singapore expects
Substance for a GTP award is concrete: traders and risk managers physically based in Singapore taking real positions, a functioning middle and back office, local banking relationships, and use of Singapore’s logistics and professional-services ecosystem. Enterprise Singapore assesses both the quantitative commitments (turnover, spending, headcount) and the qualitative reality of where decisions are made.
Groups that succeed treat the award as a commitment to build a genuine trading hub. Those that treat it as a booking convenience tend to struggle at renewal, when the regulator reviews whether the promised substance materialised.
Common mistakes and gotchas
The classic error is treating the GTP as a paper booking arrangement. Enterprise Singapore and IRAS expect genuine trade decisions, risk-taking and staff in Singapore; income booked here without matching substance is at risk.
A second pitfall is poor segregation of qualifying and non-qualifying income. Derivative and hedging income must be properly linked to qualifying physical trades to fall within the concession, so your trade-capture and accounting systems must support the split from the outset.
Related guides
- Singapore Holding Company 2026: Tax Benefits, Structure and Setup Guide
- Singapore vs Hong Kong 2026: Work Pass, Tax, Cost of Living and PR Compared
- Global Trader Programme (GTP) — concessionary tax — Timeline and processing benchmarks
FAQs
What income qualifies under the GTP?
Broadly, income from qualifying physical trades in approved commodities and products, qualifying brokering, and derivative trades used to manage price risk on qualifying trades. The exact scope is set in your award.
What tax rate does the GTP give?
A concessionary corporate tax rate below the headline rate on qualifying trading income. The precise rate and award term are agreed with Enterprise Singapore and confirmed in the award letter.
How long is a GTP award?
Awards are granted for a fixed, renewable term — commonly around five years — subject to meeting the agreed commitments.
Do I need staff in Singapore?
Yes. Local headcount covering trading, risk, operations and finance is a core commitment, alongside annual qualifying turnover and business spending.
Does the GTP cover derivatives and hedging?
Qualifying derivative trades used to manage price risk on qualifying physical trades can fall within the concession, provided they are properly linked to the underlying qualifying activity. The exact scope is set in your award.
Can a start-up trader get a GTP award?
The programme generally favours established traders with a track record and network. New entrants may need to build scale first, though Enterprise Singapore assesses each case on its merits.
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.