SINGAPORE - The Government will implement three new measures to help local companies expand in overseas markets, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said on Monday.
These measures will cost the Government about $240 million, he said.
During the Budget 2015 announcement, DPM Tharman said that the Government will help relieve the burden for local firms by expanding the Double Tax Deduction for Internationalisation scheme to cover salaries of Singaporean workers posted to foreign countries.
Local companies which are approved on the scheme can deduct twice the qualifying expenses incurred for certain international expansion activities against their taxable income.
The Government will also increase support for all SME activities under 1E Singapore's grant schemes from 50 per cent to 70 per cent for three years.
DPM Tharman also introduced the International Growth Scheme (IGS) on Monday. Under IGS, qualifying companies will be given a 10 per cent concessionary tax rate on their incremental income from qualifying activities. This will encourage local firms to expand internationally while maintaining their HQ in Singapore, he said.
In total, these three enhancements to our schemes for internationalisation are expected to cost $240 million, he added.