~ the world is your oyster. (relevant for SMEs)
Alright, I'll admit I'm being dramatic with the title but the need for Singapore companies to get out there is vital to the city-state's long term future. There are plenty of reasons to set up your company in Singapore but one of the most convincing ones would be the general stance of the Singapore government when it comes to supporting businesses. Be it grants, simplification of administration or tax incentives, it is geared to make it easy for entrepreneurs to start their journeys here.
One of the long standing incentives we have is a Double Tax Deductions on expenses related to Internationalisation (DTDi) of Singapore businesses. Essentially, the government is allowing 200% deduction on a company's spending on activities which helps promote goods and services overseas! That includes costs of participating in trade fairs, overseas posting staff cost, travel costs, marketing material preparation, product/service certification and (most recently) e-commerce campaign costs.
There are limitations of course but not impossible like some we have seen in other countries. Broadly speaking, there is quite a wide span of expenses allowed for automatic claim (no application required) of up to SGD150,000 (USD111k~) tax deductions which is equivalent to almost USD 19k of tax savings per annum. Beyond which, an approval needs to be obtained from the Enterprise Singapore which allows open application via their website.
This alongside with the rebranded Enterprise Innovation Scheme (EIS), SMEs should take full advantage of the deductions available. More on EIS later.