Budget 2026 makes DTDi easier to claim and more generous. Here’s what changed.
What Changed in DTDi After Budget 2026?
| Before Budget 2026 | After Budget 2026 | Effective | |
|---|---|---|---|
| Auto-deduction cap | S$150,000/YA | S$400,000/YA | YA 2027 |
| Activities (no prior approval) | 9 activities | 9 + overseas dev trips, investment study trips, + more | YA 2027 |
| Prior approval threshold | >S$150,000/YA | >S$400,000/YA | YA 2027 |
| Scope of auto-deduction | 9 listed activities only | Expanded to cover overseas dev/study trips + additional qualifying activities | YA 2027 |
How Does DTDi Work?
DTDi gives companies a 200% tax deduction on qualifying overseas expansion expenses. This means:
- S$100,000 in qualifying expenses = S$200,000 deducted from taxable income
- At the 17% corporate tax rate = S$34,000 in tax savings
DTDi is not a cash grant. The benefit is realized through reduced tax liability at filing time.
What Is the Automatic Deduction?
Qualifying expenses below the cap can be claimed directly on your tax return without prior EnterpriseSG approval. Budget 2026 raises this cap from S$150,000 to S$400,000 per Year of Assessment.
Previously qualifying automatic activities (7 categories):
- Participation in overseas trade fairs
- Participation in approved local trade fairs
- Overseas market promotion activities
- Market research and feasibility studies
- Third-party consultancy for overseas expansion
- Tender preparation for overseas projects
- Product/service certification for overseas markets
Moved from approval-required to automatic (from YA 2027):
- Overseas business development trips (previously needed approval)
- Overseas investment study trips (previously needed approval)
- Additional qualifying activities (details to be confirmed by IRAS/EnterpriseSG)
Worked Example: S$300K Overseas Expenses
Scenario: Your company spends S$300,000 on qualifying overseas expansion activities in one year.
| Before Budget 2026 | After Budget 2026 | |
|---|---|---|
| Qualifying expenses | S$300,000 | S$300,000 |
| Auto-deduction cap | S$150,000 | S$400,000 |
| Auto-deduction (200%) | S$300,000 | S$600,000 |
| Remaining S$150K | Needs prior approval | Automatic |
| Prior approval needed? | Yes (for amounts >S$150K) | No (under S$400K cap) |
| Tax savings (at 17%) | S$51,000 (if approved) | S$102,000 (automatic) |
Result: The same S$300,000 in expenses can now be claimed automatically at 200%, yielding S$102,000 in tax savings without any prior approval.
What Still Needs Prior Approval?
Even after Budget 2026, you need EnterpriseSG approval for:
- Expenses exceeding S$400,000/YA — the portion above S$400K needs approval
- Overseas trade offices — setting up and running permanent overseas offices
- E-commerce campaigns — certain online market development activities
- Activities outside the expanded list — any expense category not in the auto-qualifying list
When Does This Take Effect?
| Change | Effective |
|---|---|
| Auto-deduction cap S$400K/YA | Year of Assessment 2027 |
| Expanded qualifying activities | Year of Assessment 2027 |
YA 2027 means the changes apply to expenses incurred in the financial year ending in 2026 (for most companies with a standard calendar year).
How to Claim on Your Tax Return
DTDi is claimed through your annual corporate tax return — not through a grant portal. For automatic deductions (≤S$400K per YA), there is no prior approval needed.
Filing process:
- Incur qualifying overseas market development expenses during the relevant financial year
- Determine if your claim is automatic (≤S$400K) or requires prior approval (>S$400K or overseas trade offices)
- For automatic claims: prepare invoices, payment proofs, and evidence of qualifying activities (e.g., trade fair participation, overseas business development trip reports)
- For approval-required claims: apply to EnterpriseSG before incurring expenses
- Calculate the enhanced deduction (200% of qualifying amount)
- Report the deduction in your Form C-S or Form C under the DTDi section
- Submit by the filing deadline: 30 November (paper) or 15 December (e-filing) of the Year of Assessment
Important notes:
- This is a tax deduction, not a cash grant — it reduces your taxable income, not a direct payment
- Automatic ≤S$400K claims are self-assessed — IRAS may audit, so keep all documents for at least 5 years
- You cannot claim the same expense under both DTDi and an EnterpriseSG grant (e.g., MRA)
- Expenses must be incurred in the correct Year of Assessment — pre-payments for future activities may not qualify
Related filing guides:
- DTD Mistakes to Avoid — common errors that trigger IRAS queries
- DTD vs MRA Decision Matrix — tax deduction vs grant reimbursement
- IRAS Tax Incentives Directory — overview of all IRAS incentives
- CIT Rebate & Cash Grant YA 2026 — automatic rebate you also receive
Related Guides
- Budget 2026 Internationalisation Grants Overview — all Budget 2026 grant changes
- Budget 2026 Expansion Grants Decision Matrix — MRA vs DTDi vs BizAdapt comparison
- DTD or MRA? Tax Deduction or Cash Grant — when to use DTDi vs MRA
- DTD Common Mistakes — avoid common DTDi claim errors
- Grant Pitfalls Guide — common mistakes across all grants
- Singapore Grants Glossary
Official Links
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