Singapore Double Tax Deduction for Internationalization (DTDi)

What is the Double Tax Deduction for Internationalisation (DTDi)?

The DTDi scheme allows Singapore-registered businesses to claim a 200% tax deduction on qualifying expenses incurred for international market expansion activities. Administered by Enterprise Singapore, DTDi is particularly relevant for AI training companies and consultancies expanding their services into regional markets across ASEAN.

How DTDi Works

Under DTDi, qualifying expenses are deducted twice against taxable income. For example, if a company spends S$50,000 on an overseas market development trip, it can deduct S$100,000 from taxable income, effectively reducing the net cost by the corporate tax rate (17%) applied to the additional S$50,000 deduction.

Tax savings calculation:

• Qualifying expense: S$50,000
• Additional deduction: S$50,000 (the "double" portion)
• Tax saving: S$50,000 x 17% = S$8,500
• Effective cost: S$41,500 (17% discount)

Qualifying Expenses

DTDi covers a broad range of internationalisation activities:

Market Development

• Overseas business development trips
• Participation in trade fairs and exhibitions
• Market feasibility studies
• Business matching services

Talent Acquisition

• Overseas recruitment missions
• Relocation costs for overseas hires supporting expansion

Marketing & Branding

• Advertising in overseas markets
• Design and development of marketing collateral for international audiences
• Digital marketing campaigns targeting overseas customers

Setup Costs

• Legal and regulatory compliance for overseas operations
• Overseas office setup (rental deposits, fit-out)

Application Process

Automatic DTDi (No Pre-Approval Needed)

For expenses up to S$150,000 per year in aggregate, companies can claim DTDi automatically through their corporate tax filing. Simply declare the qualifying expenses in your tax return.

Approved DTDi (Pre-Approval Required)

For expenses exceeding S$150,000 per year, companies must obtain pre-approval from Enterprise Singapore before incurring the expenses. Submit an application through Enterprise Singapore's website with your internationalisation plan.

Relevance for AI Training Companies

DTDi is particularly valuable for Singapore-based AI training providers and consultancies expanding into:

• Malaysia: HRDF-aligned training programs
• Indonesia: Corporate AI training for Jakarta-based enterprises
• Thailand: BOI-promoted AI skill development
• Vietnam: Training partnerships with Vietnamese institutions

Activities like attending regional conferences, conducting pilot training programs overseas, and setting up regional delivery teams all qualify for DTDi support.

Combining DTDi with Other Schemes

• Market Readiness Assistance (MRA): Up to 50% co-funding for overseas marketing activities, stacked with DTDi tax deduction on the company's 50% co-payment
• Enterprise Development Grant (EDG): For larger market access projects
• Bilateral trade agreements: Singapore's extensive FTA network reduces tariffs on cross-border AI services