Singapore Tax Incentives for International Businesses

Oct 4 2022
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International Businesses looking to enter the Asian market space often turn to Singapore as their operational base for reaching consumers across the region and to develop strategic plans to expand their business. From being a leading innovation hub that houses several global R&D labs for Fortune 500 companies, to having one of the world’s most transparent tax system, there are several reasons why companies choose Singapore as their centre for doing business.

The Singapore government is committed towards encouraging a vibrant ecosystem that is suitable for businesses to expand their presence in the region. It is the only country across Asia to make it in the top 10 World Talent Ranking by IMD World Competitiveness Centre (2022). One of the ways it does this is through attractive incentives and schemes to pull companies into this thriving destination.

Singapore has seen a visible growth of companies setting up their operational bases here over the past few decades.


  Source: Enterprise Development Board (EDB)

The following section goes through certain tax incentives available for companies that intend to set up their international headquarters or regional headquarters in the country:

Pioneer Certificate Incentive (PC) and Development and Expansion Incentive (DEI)

Business that have set up headquarters in Singapore can benefit from the PC incentive or DEI to build their HQ capabilities and expand activities across the region. The incentive is aimed to encourage businesses to improve their operational capacities in the country.

Benefits of the PC or DEI:

Companies that are awarded the incentive will be eligible for a corporate tax exemption or be given concessions on the tax rate at 5% or 10% respectively, calculated on income from qualifying activities. This is given for a period of 5 years, and may be extended based on the companies’ willingness to undertake further expansion plans in the future.

To be considered for the PC incentive, companies need to prove that they are bringing into Singapore pioneering ideas that have not been previously undertaken by a business before. This includes bringing into the foray new technology, skillsets, or knowledge that is substantially significant or advanced.

The DEI incentive is generally awarded to companies that have demonstrated significant interest in making investments within the economy and expanding business capabilities of globally leading industries. Companies awarded with either PC or DEI may be accompanied with the International Headquarters Award (IHA) if they meet qualifying requirements and have substantial resources to anchor HQ activities towards business expansion and controlling regional operations.

Business Expansion Opportunities Abound
Singapore offers Multinational Corporations (MNCs) a vast array of benefits and resources to tap from. It is home to some of the largest concentration of Fortune 500 companies, and companies here have the opportunity to connect with the rest of the Asia Pacific region, reaching consumers and key leaders who will take their business to the next level.

Need help with your business expansion plans to Singapore? Contact Us.

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