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YA 2027 DTDi automatic claims have a S$400,000 cap and a wider activity list. Check the basis period, qualifying costs and records before filing.
YA 2027 DTDi automatic claims can cover up to S$400,000 of qualifying expenditure for each Year of Assessment, subject to the scheme rules. The higher cap and expanded list apply from YA 2027. Companies should identify the correct basis period, separate qualifying overseas-market work from ordinary business costs and keep records that connect each expense to an eligible activity.
The change reduces the need to seek prior approval for some claims. It does not make every overseas expense deductible twice. The company remains responsible for its tax return and evidence.
Confirm which rule applies to the claim year
IRAS explains the current Double Tax Deduction for Internationalisation scheme. Qualifying businesses receive a 200 per cent tax deduction on eligible market expansion and investment development expenditure. The first 100 per cent is the normal deduction, while DTDi supplies the additional 100 per cent.
For this reason, For YA 2026, the automatic-claim cap remains S$150,000. Enterprise Singapore’s Budget 2026 business support summary says the cap rises to S$400,000 from YA 2027. It also places more activities under the automatic route. A company with a 31 December year end would normally look to expenditure incurred in calendar year 2026 for YA 2027, but a different financial year end changes the basis period.
Label the schedule by both financial period and Year of Assessment. This prevents a finance team from applying the new limit to expenditure that belongs to an earlier YA.
Map each cost to an eligible activity
Automatic treatment depends on the activity and expense, not merely on an overseas destination. Current categories include overseas business development trips and missions, overseas trade fairs, approved local trade fairs and virtual trade fairs. From YA 2027, the automatic list expands to cover selected costs for overseas market promotion and advertising, overseas product or service certification, overseas investment feasibility and due diligence, and overseas product or packaging adaptation.
In practice, create a claim line for each activity. Record the market, commercial objective, dates, employees or vendors involved and the direct cost. Then link the line to the invoice, contract, itinerary, event record, deliverable and proof of payment.
A general label such as business development is too vague. A stronger description states that two employees travelled to Jakarta to meet five named distributors for a Singapore product launch, with airfare and hotel costs identified separately.
Distinguish automatic claims from approval-based claims
An expense above the annual automatic cap does not automatically fail. However, the company may need Enterprise Singapore approval for the amount outside the cap, and the application timing and activity rules matter. Some eligible activities also remain approval-based even when total spending is below S$400,000.
At the same time, the Enterprise Singapore DTDi page should be checked before the company commits to work that needs approval. Do not assume approval can be obtained retrospectively. Preserve the application, approval letter and approved scope beside the tax computation.
Use two schedule sections: automatic expenditure and approved expenditure. Show the amount claimed, the legal entity that incurred it and the supporting route. This makes the tax review easier and reduces the risk of counting one invoice twice.
Build an evidence file that survives staff changes
| Claim area | Useful evidence | Common weakness |
|---|---|---|
| Business trip | Agenda, named counterparties, travel records and follow-up | Only airfare and hotel invoices are retained |
| Trade fair | Event contract, exhibitor proof, booth costs and leads | Attendance is not tied to market development |
| Promotion | Campaign brief, target market, media plan and results | Domestic and overseas spend is mixed |
| Certification | Market requirement, certifier scope and certificate | Routine local compliance is included |
| Feasibility work | Decision question, adviser report and board outcome | General strategy advice lacks a specific investment |
| Adaptation | Market rule, original design, changed design and vendor cost | Ordinary product development is claimed |
Keep the records with the tax workpapers, not only in a sales employee’s mailbox. Include foreign-currency conversion, cost allocations and any amount recovered from a customer or grant. If one vendor invoice covers several countries or activities, obtain a breakdown or document a reasonable allocation.
As a result, Related-party charges need the same commercial trail. The Singapore claimant should show the service received, the basis of the charge and the connection to its internationalisation activity. Transfer-pricing support may also be needed.
Check who can claim and which costs stay out
The scheme is for businesses established in Singapore that aim to expand overseas. The claimant must incur qualifying expenditure for its trade or business. Salary, ordinary product costs, capital items and general overhead do not become DTDi expenditure merely because a project has an overseas objective.
Test grants and reimbursements before computing the claim. A company should not claim a double deduction on a cost it did not ultimately bear. GST treatment, deductibility and the DTDi amount should reconcile to the ledger and tax computation.
For example, Suppose a company spends S$430,000 on a mixture of overseas promotion, certification and product adaptation in its YA 2027 basis period. It should first remove ordinary production and domestic costs. It can then test the remaining expenditure against the automatic activity list and S$400,000 cap. Any balance requires its own eligibility and approval analysis rather than an automatic extra claim.
Put DTDi into the year-end close
Ask business teams to flag relevant projects when they begin. Finance can assign a project code, collect evidence quarterly and decide early whether approval may be required. At year end, reconcile the project register to the general ledger before preparing the corporate tax return.
The Singapore business support decision guide is the pillar cornerstone. The MRA overseas-cost guide covers a separate grant evidence issue, while the EIS tax deduction guide explains another incentive choice. The Enterprise Support and Grants hub connects the full library.
In addition, the higher cap is useful only when the claim can be traced. A dated activity map, clean expense schedule and complete evidence file turn the YA 2027 change into a supportable tax position.