Page 10 - Budget-2018-Highlights-en-flip
P. 10

CORPORATIONS AND BUSINESSES

Double Tax Deduction         for                      Comments
Internationalisation Scheme
                                                       This is a welcome move for businesses that
Current                                                   incur substantial expenditure on qualifying
                                                          market expansion and investment development
Under the Double Tax Deduction for                        activities. The increase in the capping limit will
Internationalisation (“DTDi”) scheme, businesses          further ease the administrative need of having
are allowed a tax deduction of 200% on qualifying         to make formal applications to the respective
market expansion and investment development               government agencies for expenditure up to
expenses, subject to approval from IE Singapore or        $150,000.
STB.
                                                       Notwithstanding that the move is aimed at
No prior approval is needed from IE Singapore or          reducing the administrative burden, businesses
STB for tax deduction on the first $100,000 of            must however continue to take due care in
qualifying expenses incurred on the following             making accurate declarations and claims when
activities for each YA:                                   filing their income tax returns.

 Overseas business development trips/missions;        Under the current practice, the scheme is not
                                                          open to companies that are already enjoying
 Overseas investment study trips/missions;               other forms of grants or subsidies from any
                                                          government agencies, notwithstanding that
 Participation in overseas trade fairs; and              such other claims might not have covered the
                                                          totality of the qualifying expenditure. It remains
 Participation in approved local trade fairs.            to be seen if there will be relaxation of rules in
                                                          this area once further details of the change are
Proposed changes                                          released by IE Singapore and STB by April 2018.

To further encourage internationalisation, the
$100,000 expenditure cap for claims without prior
approval from IE Singapore or STB will be raised to
$150,000 per YA. Businesses can continue to apply
to IE Singapore or STB on qualifying expenses
exceeding $150,000, or on expenses incurred on
other qualifying activities.

All other conditions of the scheme remain the same.

IE Singapore and STB will release further details of
the change by April 2018.

Effective date

For qualifying expenses incurred on or after YA
2019.

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