What is the Global Trader Programme?
GTP stands for Global Trader Programme. In Singapore, it is not a cash grant; it is an Enterprise Singapore tax incentive that can lower the corporate tax rate on qualifying trading income to 5%, 10%, or 15% for approved international traders.
Searchers looking for the Global Trader Programme usually need the tax-rate answer first: GTP can approve a 5%, 10%, or 15% concessionary rate on qualifying trading income, but only for established trading companies that commit substantial activity, skilled roles, and strategic functions to Singapore.
Global Trader Programme Quick Answer
The Global Trader Programme is for established international trading companies that can commit trading activities, skilled jobs, and strategic functions to Singapore. Approved companies receive a 5%, 10%, or 15% concessionary tax rate on qualifying trading income for a five-year incentive period. Smaller SMEs looking for overseas market support should compare MRA and DTDi instead.
The Global Trader Programme (GTP) is a tax incentive by Enterprise Singapore for established international trading companies, offering a concessionary corporate tax rate of 5%, 10%, or 15% (vs. the standard 17%) on qualifying trading income for five years.
GTP is designed to attract and retain global trading companies that perform strategic functions and employ skilled professionals in Singapore.
Who is GTP for?
- Established international trading companies with proven track record
- Global commodity and derivatives traders
- Companies with international trading and distribution networks
- Businesses seeking to establish trading operations hub in Singapore
- Firms requiring tax incentives for significant Singapore operations
Eligibility
To be eligible for GTP, your company must meet the following criteria:
- Established business with international trading and distribution network
- Good track record in international physical trading or financial trading
- Planning to set up or expand trading operations in Singapore
- Able to commit to significant trading activities in Singapore
- Capable of employing skilled professionals in Singapore
Required Commitments
To qualify for GTP, your company must commit to:
-
Significant Trading Activities in Singapore
- Conduct substantial volume of trading transactions
- Demonstrate strong trading pipeline and order book
- Show commitment to expanding Singapore operations
-
Skilled Employment
- Employ qualified trading professionals
- Hire experienced risk management staff
- Recruit skilled financial and compliance personnel
-
Strategic Functions
- Strategic management and decision-making
- Compliance and risk management
- Financial management functions
- Logistics management functions
-
Use of Singapore Services
- Utilize Singapore’s banking and financial services
- Engage Singapore-based logistics providers
- Use Singapore arbitration and dispute resolution services
- Leverage Singapore’s supporting professional services
Types of Qualifying Trading Income
GTP concessionary tax rates apply to:
- Physical trading - Income from buying and selling physical commodities
- Brokering - Income from arranging physical trades between buyers/sellers
- Derivative trading - Income from commodity futures, options, and derivatives
- Structured commodity financing - Income from financing and structured products
Non-Qualifying Income
- Non-trading business income
- Investment income from securities or real estate
- Service income unrelated to trading
- Income from speculative or investment activities
Tax Rate Tiers
GTP offers three tax rate options based on business scope and commitment:
| Tax Rate | Typical Candidates | Requirement |
|---|---|---|
| 5% | Ultra-high volume traders | Highest trading volume and commitment |
| 10% | Major regional traders | Significant regional trading hub operations |
| 15% | Growing international traders | Establishing Singapore trading presence |
The specific rate is determined based on your company’s:
- Projected trading volume
- Number and seniority of staff
- Strategic functions to be performed
- Commitment to Singapore operations
- Investment in Singapore infrastructure
Application Process
1. Initial Engagement
- Contact Enterprise Singapore to discuss GTP eligibility
- Present company profile, trading background, and strategic plans
- Outline proposed Singapore operations and commitments
2. Proposal Development
- Develop detailed proposal outlining:
- Trading activities and product coverage
- Projected trading volume and revenue
- Organization structure and staffing plan
- Strategic functions to be located in Singapore
- Use of Singapore services and infrastructure
- Investment commitments (office, technology, talent)
3. Enterprise Singapore Assessment
- EnterpriseSG reviews proposal against GTP criteria
- May conduct due diligence on company background and track record
- Negotiates terms including:
- Applicable tax rate (5%, 10%, or 15%)
- Duration of incentive (5 years)
- Performance milestones and conditions
- Compliance and reporting requirements
4. Approval and Execution
- EnterpriseSG issues approval letter outlining terms
- Company enters into agreement
- Implementationbegins with tax incentive taking effect
- Regular compliance reporting with EnterpriseSG
Important Conditions
During the Incentive Period
- Maintain committed trading volume and activities
- Sustain required level of skilled employment
- Continue performing committed strategic functions
- File annual compliance reports with EnterpriseSG
- Comply with all regulatory requirements
If Commitments Not Met
- Tax rate incentive may be suspended or withdrawn
- Company reverts to standard corporate tax rate (17%)
- EnterpriseSG may require clawback of tax incentives previously enjoyed
Common Pitfalls to Avoid
- Not understanding it’s a tax rate reduction - Benefit realized through lower tax rate on qualifying trading income, not direct funding
- Insufficient trading track record - Must demonstrate established track record; startups unlikely to qualify
- Underestimating commitment requirements - Must genuinely establish significant Singapore operations with meaningful employment
- Non-qualifying income generation - Tax incentive only applies to qualifying trading income; other business income taxed at standard rate
- Failing to meet ongoing commitments - Must maintain obligations throughout five-year period or lose benefits
Key Differences from Other Schemes
| Aspect | GTP | Other Trading Schemes |
|---|---|---|
| Type | Tax rate reduction (5-15%) | Varies |
| Qualifying | Established traders only | May include startups |
| Duration | 5 years | Varies |
| Obligations | Significant commitments required | Lower commitments |
| Application | Direct EnterpriseSG engagement | Portal application |
Worked Example
Scenario: A commodity trading company qualifies for GTP with a 10% concessionary tax rate. Here is the annual tax impact on qualifying trading income.
| Item | Standard Rate (17%) | GTP Rate (10%) |
|---|---|---|
| Qualifying trading income | S$5,000,000 | S$5,000,000 |
| Corporate tax payable | S$850,000 | S$500,000 |
| Annual tax savings | — | S$350,000 |
| 5-year total savings | — | S$1,750,000 |
How it works:
- Your company applies to Enterprise Singapore and is approved for GTP at the 10% tier.
- Each year, qualifying trading income (physical commodity trades, brokering, derivatives) is taxed at 10% instead of 17%.
- Non-qualifying income (e.g., rental income, investment gains) remains taxed at the standard 17% rate.
- On S$5M of qualifying income, you save S$350,000 per year — or S$1.75M over the full 5-year incentive period.
- To maintain the rate, you must meet your committed trading volumes, headcount, and strategic function obligations each year.
Key takeaway: GTP is not a cash grant. The benefit is realized through a lower tax rate on qualifying trading income only. Companies must maintain their commitments throughout the 5-year period or risk losing the concession.
Frequently Asked Questions
Is GTP a cash grant or subsidy?
No. GTP is a corporate tax rate reduction. Your company pays 5-15% corporate tax on qualifying trading income instead of the standard 17%, resulting in tax savings over five years.
What happens after the five-year incentive period?
After five years, your company reverts to the standard corporate tax rate of 17% on all income unless EnterpriseSG extends the program.
Can a Singapore-incorporated company with overseas operations apply?
Yes, if the company meets all other criteria and commits to significant trading operations in Singapore, it can apply for GTP.
How do I know if my trading income qualifies?
Qualifying income includes income from physical commodity trading, brokering, derivatives, and structured commodity financing. Non-trading business income does not qualify and is taxed at the standard 17% rate.
Can I apply directly, or must I engage EnterpriseSG?
You should reach out directly to Enterprise Singapore to discuss your proposal and eligibility. There is no standard portal application for GTP.
Can I apply for both GTP and DTDi?
GTP and DTDi are separate schemes administered by Enterprise Singapore. GTP provides a concessionary tax rate on qualifying trading income, while DTDi provides a 200% tax deduction on overseas expansion expenses. Discuss your situation with EnterpriseSG to determine the best combination for your business.
Related Schemes
Looking for similar funding options? These schemes complement this grant or offer alternative pathways:
- Market Readiness Assistance
- Double Tax Deduction for Internationalisation
- Enterprise Development Grant - For broader internationalization support
Related Guides
- SME Overseas Expansion Grants - Detailed eligibility requirements and checklists
- MRA Decision Matrix - Compare overseas expansion grants
- Grant Pitfalls Guide - Common mistakes to avoid
- Singapore Grants Glossary — key terms and definitions
References
Official Resources
- Global Trader Programme - Enterprise Singapore - Official GTP page
- Enterprise Singapore Contact - Reach out to discuss GTP eligibility
- IRAS - Corporate Tax Rates - Current corporate tax information
- Singapore Commodity Market Hub - Trading hub information