Double Tax Deduction for Approved International Fair

To qualify, a company should meet the following requirements:

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

• Is exhibiting in approved local trade fairs accorded the AIF status by SECB.

The DTD for AIF scheme allows approved companies to deduct against their taxable income, twice the qualifying expenses incurred for participating in AIF events held in Singapore.

Qualifying expenses include the following:

• Space or stand rental costs

• Stand construction costs

• Stand decoration costs

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

• Insurance for exhibits (for the duration of trade fair only)

• Cost of inviting up to two overseas buyers (i.e., airfare and accommodation) for the duration of the event

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 AIF events held in Singapore per Year of Assessment (YA) without obtaining prior support from Singapore Tourism Board (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 qualifying 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 approved international fairs, 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.

Companies who are interested in applying for DTD may check whether the event has been accorded AIF status by clicking here. For events that are not listed, please write to secb@stb.gov.sg to enquire.

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.