Applying for Double-tax Deduction (DTD)
Approved companies participating in AIF-approved events are eligible for Double Tax Deduction (DTD), which allows them to make deductions against their taxable income that can amount to twice the usual eligible exhibition expenses. Tax deductions of up to 200 percent may be allowed on qualifying expenditure, up to S$100,000 per Year of Assessment (YA) without having to seek approval from SECB.
To qualify, a company should meet the following requirements:
- Must be a resident company or has a permanent establishment in Singapore;
- Is currently not enjoying any tax relief under the Economic Expansion Incentives (Relief from Income Tax) Act; and
- Is exhibiting in approved local trade fairs
Expenses eligible for consideration include:
- Stand rental / construction / design costs;
- Publicity costs (e.g. printing of event-related corporate brochures, advertising, multimedia, banners/posters);
- Insurance for exhibits; and
- Cost of inviting up to 2 overseas buyers (i.e. airfare and accommodation) for the duration of event.
Businesses are not required to submit upfront documentation for expenditure that does not exceed the $100,000 threshold. Please take note that approval from SECB is required for businesses that need larger funding support, i.e. for expenditure exceeding S$100,000.