Double Tax Deduction for Inbound Tourism Promotion

To qualify, a company should meet the following requirements:

• Be a resident company or have a permanent establishment in Singapore.

• Is promoting Singapore​ services for inbound tourism.

The DTD scheme allows approved companies to deduct against their taxable income twice the qualifying expenses incurred for participating in STB-supported overseas fairs or missions.

Qualifying expenses include the following:

• Airfare (up to 2 employees)

• Accommodation (up to 2 employees)

• Subsistence allowance (up to 2 employees)

• Publicity costs (e.g., printing of event-related corporate brochures, advertising, multimedia, banners or posters)

• Stand or space rental

• Stand construction or facilities or decoration (trade fair only)

• Freighting of fair exhibits (trade fair only)

• Insurance for fair exhibits (trade fair only)

Non-eligible expenses include out-of-pocket expenses, telecommunication cost, general software such as Microsoft Word, GST, bank interest, purchase of fixed assets, souvenirs, cash incentives, sponsorships, freebies, food and beverages for staff, and printing of business cards. Note that this list​ is non-exhaustive.

Automatic DTD was introduced in Budget 2012 which allowed businesses to claim 200% tax deduction on the first $100,000 of qualifying expenditure incurred on STB-supported overseas fairs or missions per Year of Assessment (YA) without obtaining prior support from STB.

In Budget 2018, the $100,000 cap was enhanced to $150,000 with effect from YA 2019 to further encourage internationalisation. All other conditions of the scheme remain the same.

Note that expenditure exceeding $150,000 per YA still requires STB's support. Please refer to the application process to learn more.

Companies can claim for DTD on qualifying expenditure from the Inland Revenue Authority of Singapore (IRAS) when filing their annual income tax returns. It is not required to submit upfront documentation to IRAS for expenditure, incurred on STB-supported overseas fairs or missions, not exceeding the $150,000 threshold.

However, as with other business expenses, companies are required to maintain documentation to provide proof of their expenditure and the purpose of that expenditure. Such documentation includes the purpose and itinerary of the trip, list of companies met, invoices, and receipts of the qualifying expenses.

Click here for details on the enhancement of automatic DTD.

For qualifying expenditure exceeding $150,000 per YA, companies must submit their DTD application to STB for support.

• The Comptroller of Income Tax shall determine whether the expenses contained in the claim qualify for the double tax deduction.​

• Companies have to submit the letter of support from STB ​to IRAS when filing the company's annual income tax return to claim tax deduction.