Use this guide to decide between Double Tax Deduction for Internationalisation (DTD) and Market Readiness Assistance (MRA) for your overseas expansion. These two schemes work differently and can sometimes be combined.
Read This First
- DTD is a TAX DEDUCTION, not cash: You get 200% deduction on qualifying expenses (up to S$400K/year), reducing your taxable income. No money changes hands until tax filing.
- MRA is a CASH GRANT: You receive 70% of qualifying costs back as actual funds (up to S$100K per market).
- DTD has no prior approval for automatic activities: Claim on your tax return for expenses under S$400K in approved categories.
- MRA requires BGP approval BEFORE starting: Never start activities, sign contracts, or pay deposits before receiving Letter of Offer.
- MRA requires a “new market”: Your sales in the target country must be ≤S$100,000 in each of the past 3 years.
- DTD has no new market requirement: Any overseas market development activity qualifies, including established markets.
Quick Decision Matrix
| DTD | MRA-OMP | MRA-OBD | MRA Set-up | |
|---|---|---|---|---|
| Trade fair / overseas marketing | ✓ | ✓ | — | — |
| Overseas business travel | ✓ | — | ✓ | — |
| Find distributors / partners | ✓ | — | ✓ | — |
| Deploy BD staff overseas | ✓ | — | ✓ | — |
| Market research / consultancy | ✓ | — | ✓ | — |
| Register IP / trademark overseas | — | — | — | ✓ |
| Set up overseas entity | — | — | — | ✓ |
| Already >S$100K sales in market | ✓ | ✗ | ✗ | ✗ |
| Need cash now (vs. tax savings) | ✗ | ✓ | ✓ | ✓ |
| Can start immediately (no approval) | ✓ | ✗ | ✗ | ✗ |
Legend: ✓ = Use this option | — = Not applicable | ✗ = Not eligible or not suitable
At a Glance
| DTD | MRA-OMP | MRA-OBD | MRA Set-up | |
|---|---|---|---|---|
| Type | Tax deduction | Cash grant | Cash grant | Cash grant |
| Benefit | 200% deduction | 70% reimbursement | 70% reimbursement | 70% reimbursement |
| Cap | S$400K/year | S$20K | S$50K | S$30K |
| Prior approval | No (auto) | Yes (BGP) | Yes (BGP) | Yes (BGP) |
| New market required | No | Yes | Yes | Yes |
| SME-only | No | Yes | Yes | Yes |
| When you get benefit | Tax filing | ~4-8 weeks after claim | ~4-8 weeks after claim | ~4-8 weeks after claim |
Decision Flow
Step 1: Do you need cash or tax savings?
Is your company profitable and paying corporate tax? Tax deductions only help if you have taxable income to offset.
Y
Yes, we're profitable
Both DTD and MRA can work
DTD reduces your tax bill; MRA gives you cash back. You may be able to use both for different expenses.
N
No, we're pre-profit or loss-making
Use MRA (cash grant)
Tax deductions won't help if you have no taxable income. MRA gives you actual cash to fund expansion.
Step 2: Pick based on your situation
DTD: Double Tax Deduction
Established market, need flexibility
No approval needed for automatic activities under S$400K. Works for markets where you already have sales.
- Already have S$200K sales in Malaysia but want to expand further
- Need to book trade fair next week (no time for grant approval)
- Business travel for ongoing market development
MRA: Market Readiness Assistance
New market entry, want cash reimbursement
70% cash back on market entry costs. Must be a new market (≤S$100K sales in past 3 years).
- First-time entry to Vietnam with no existing sales
- Setting up overseas entity or registering trademark
- Hiring consultant for distributor search in new market
MRA-OMP or DTD
Trade fair or overseas marketing
Both cover trade fairs. Use MRA-OMP for new markets (70% cash back, S$20K cap). Use DTD for established markets or when you need to start immediately.
- Exhibiting at trade fair in Germany (new market) → MRA-OMP
- Exhibiting at trade fair in US (established market) → DTD
MRA Set-up
Overseas entity setup or IP registration
DTD does not cover entity incorporation or IP/trademark registration. Use MRA Set-up (70% cash back, S$30K cap).
- Registering trademark in Thailand
- Incorporating subsidiary in Indonesia
- Obtaining import/export licence
Common Scenarios
- “I need to attend a trade fair next month and haven’t applied for anything” → DTD (no prior approval needed; MRA takes 4-6 weeks to approve)
- “We’re entering Vietnam for the first time and want cash support” → MRA (new market qualifies; get 70% back as cash)
- “We already have S$300K sales in Japan but want to expand” → DTD only (Japan is not a “new market” for MRA)
- “We’re a startup with no profits yet” → MRA (tax deductions don’t help if you have no taxable income)
- “We want to register our trademark in Thailand before selling there” → MRA Set-up (DTD doesn’t cover IP registration)
- “We’re doing market research via consultant for a new market” → Both work - MRA-OBD for cash back, or DTD for tax savings
- “Large company with >200 employees expanding overseas” → DTD (MRA is SME-only; DTD has no size restriction)
Before You Apply
For DTD (Tax Deduction)
- No application needed for automatic activities under S$400K - claim on your tax return
- Keep detailed records of all qualifying expenses (invoices, receipts, itineraries)
- Understand the benefit: 200% deduction means S$100K expense = S$200K off taxable income = ~S$34K tax savings (at 17% rate)
- Apply to EnterpriseSG first if expenses exceed S$400K or fall outside automatic categories
For MRA (Cash Grant)
- Do NOT start activities before receiving Letter of Offer (no deposits, contracts, or POs)
- One market, one activity type per application
- Quotations must match your ACRA entity name exactly
- Set up Corppass if not done: Corppass Setup Guide
Can I Use Both?
Yes, but for different expenses. You cannot double-dip on the same cost. Example:
- Trade fair booth in Germany (new market): Claim under MRA-OMP
- Business travel to existing markets: Claim under DTD
- Market research consultant: Choose one (either MRA-OBD or DTD, not both)
Related Guides
- DTD Common Mistakes - Avoid common DTD claim errors
- MRA Decision Matrix - Compare MRA-OMP, MRA-OBD, MRA Set-up, and EDG
- SME Overseas Expansion Grants - Full guide with eligibility checklists
- Grant Pitfalls Guide - Common mistakes to avoid when applying
- Corppass Setup Guide - Required for BGP grant applications
Scheme Pages
- Double Tax Deduction for Internationalisation (DTD)
- Market Readiness Assistance (MRA)
- MRA: Overseas Market Promotion
- MRA: Overseas Business Development
- MRA: Overseas Market Set-up
- Singapore Grants Glossary — key terms and definitions
Official Links
- DTD: Enterprise Singapore
- MRA: Enterprise Singapore
- Business Grants Portal (BGP)
- IRAS - Inland Revenue Authority - For tax deduction claims
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