DTDi Automatic Claim Cap Raised to S$400,000: What Singapore Exporters Need to Know

Singapore companies expanding overseas have relied on the Double Tax Deduction for Internationalisation (DTDi) scheme for years to soften the cost of market entry, trade fairs, and overseas business development trips. Budget 2026 quietly made that scheme considerably more useful: the expenditure cap for automatic DTDi claims, meaning claims a company can make without prior approval from Enterprise Singapore or IRAS, is being raised from S$150,000 to S$400,000 per Year of Assessment, with effect from YA 2027.

For finance teams used to tracking every internationalisation expense against a much lower ceiling, this is a meaningful change in how much can be claimed without extra paperwork. Here is what the increase covers, who benefits most, and what to do to be ready for YA 2027.

What Is the DTDi Scheme?

The Double Tax Deduction for Internationalisation scheme allows Singapore companies to claim a 200% tax deduction on qualifying expenses incurred for approved activities aimed at expanding into overseas markets. Typical qualifying expenses include overseas business development trips, participation in approved trade fairs, and overseas investment feasibility studies. The scheme has been repeatedly extended, most recently through to 31 December 2030.

What the Budget 2026 Change Actually Does

Previously, companies could automatically claim the 200% deduction on qualifying DTDi expenses of up to S$150,000 per Year of Assessment, without needing prior approval from Enterprise Singapore or IRAS. Anything above that threshold required a formal application and approval before the expense was incurred. From YA 2027, this automatic claim cap rises to S$400,000 per Year of Assessment, and the range of activities that fall within the automatic claim category is also being widened to cover overseas business development, feasibility studies, and market surveys.

In practical terms, a company spending, for example, S$250,000 a year sending staff to overseas trade shows and conducting market feasibility studies, an amount that previously would have required prior approval for the excess over S$150,000, can now claim the full amount automatically once the new cap takes effect.

Who Benefits Most

The increase is most valuable for growing SMEs that are scaling up overseas expansion activity but do not have the in-house resources to manage a prior-approval application for every internationalisation push. Companies that previously kept spending artificially close to the old S$150,000 ceiling to avoid the approval process now have considerably more room to plan larger overseas market entry campaigns within the automatic claim framework.

Companies already running a broader internationalisation strategy alongside other support schemes should also revisit how DTDi interacts with their overall grant planning. Our guide on stacking Singapore government grants explains how internationalisation-focused support like DTDi can be combined with other Enterprise Singapore schemes without breaching double-funding rules.

What to Prepare Before YA 2027

Enterprise Singapore has indicated that further implementation details will follow. In the meantime, companies planning overseas expansion should start keeping more granular records of internationalisation-related spending now, categorised by activity type, so the higher automatic claim threshold can be applied cleanly once it takes effect. This includes retaining invoices, trip itineraries, and evidence connecting each expense to a specific overseas market development purpose, which IRAS will still expect to see if a claim is queried even where prior approval was not required.

Companies whose overseas expansion spending has historically or is expected to exceed even the new S$400,000 threshold will still need to apply for prior approval on the excess, so it remains worth mapping planned expenditure against the cap well before the financial year closes.

How This Fits Alongside Other Budget 2026 Tax Measures

The DTDi enhancement was announced alongside a wider package of Budget 2026 support measures, including the enhanced Corporate Income Tax rebate for Year of Assessment 2026. Our summary of Budget 2026 tax measures for companies sets out the CIT rebate and cash grant changes in more detail, which finance teams should review together with this DTDi update when planning tax provisions for the year.

Qualifying Activities at a Glance

Not every overseas expense qualifies simply because it involves travel. Costs must be tied directly to a qualifying internationalisation activity rather than general overseas operations, ordinary sales visits to an existing overseas subsidiary, or costs that are more accurately capital in nature.

Common Mistakes That Trigger a Query

The most common issue IRAS raises on DTDi claims is insufficient documentation linking the expense to a specific overseas market development purpose, rather than the amount claimed itself. Companies that keep only credit card statements, without itineraries, meeting records or a clear business case for the trip, are the most likely to have a claim queried even where the amount falls well within the automatic claim cap. Structuring your internal expense claim forms now to capture this information will make the higher S$400,000 cap far more useful in practice than simply relying on the raised ceiling alone.

Claiming Above the Automatic Cap

Where a company’s qualifying internationalisation spending is expected to exceed even the new S$400,000 automatic threshold, prior approval from Enterprise Singapore is still required for the excess before the expense is incurred, not after the fact. Applications are typically made through Enterprise Singapore’s Business Grants Portal, and approval timelines should be factored into overseas expansion planning rather than treated as a formality that can be sorted out after a trip or campaign has already taken place. Companies that habitually run close to or above the cap are often better served by an annual internationalisation budget review with their tax adviser rather than an ad hoc claim at year end.

Conclusion

Raising the DTDi automatic claim cap from S$150,000 to S$400,000 removes a significant administrative bottleneck for Singapore companies serious about overseas expansion, though the change only takes effect from YA 2027. Companies should use the time between now and then to tighten up their internationalisation expense tracking so they are ready to claim the full benefit as soon as it applies.

For the latest Singapore business news and regulatory updates, there are useful resources for finance teams tracking these changes. If your overseas expansion plans also involve setting up a presence abroad, sound business investment planning across both markets will help you get the most from these incentives.

The team at Raffles Corporate Services can help you review your internationalisation spending and plan your DTDi claims ahead of YA 2027.

To speak with the team at Raffles Corporate Services, you can email [email protected] or call, SMS, or WhatsApp +65 8501 7133. We are happy to assist with any queries.

The Editorial Team, Raffles Corporate Services