SINGAPORE - The Government announced three measures to support local companies to internationalise - a key strategy to help them grow their revenue.
First, the Government will raise the support level for small and medium enterprises (SMEs) for all activities under IE Singapore's grant schemes from 50 per cent to 70 per cent for three years, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said in his Budget Statement on Monday.
This will benefit about 700 projects, he said.
The Government will also enhance the Double Tax Deduction for Internationalisation scheme to now cover salaries incurred for Singaporeans posted overseas. This will provide greater support to companies venturing overseas, by co-sharing their risks and initial costs of expanding overseas, as well as creating skilled jobs for Singaporeans.
The scheme currently allows approved companies to deduct against their taxable income, twice the qualifying expenses incurred for qualifying activities like overseas business development trips and trade fairs.
The third measure is a new tax incentive, the International Growth Scheme (IGS), to provide support to meet the needs of larger Singapore companies in their internationalisation efforts.
Qualifying companies will enjoy a 10 per cent concessionary tax rate on their incremental income from qualifying activities. It will encourage more Singapore companies to expand overseas, while anchoring their key business activities and HQ in Singapore, said Mr Tharman.
In total, these three enhancements to our schemes for internationalisation are expected to cost $240 million, he added.