Global Trader Programme

The Global Trader Programme (GTP) is an incentive scheme that encourages global trading companies to use Singapore as their preferred regional or global base to conduct trading activities along the total trade value-add chain from procurement to distribution, in order to expand into the region and beyond. Administered by the Enterprise Singapore, it is a merger of the previous approved oil traders and approved international traders schemes on 11 June 2001. The GTP is a very effective tool in promoting and retaining Singapore’s position as a global trading hub.

It provides approved global trading companies a reduced corporate tax rate of 5% or 10% on qualifying trading income for three or five years.

In particular, income derived from the following transactions with any counterparty qualifies for the GTP:

• Physical trading, brokering of physical trades and derivative trading income.

• Physical trading where commodities are imported, undergo value-added activities in Singapore, such as physical alteration, addition or improvement (e.g. refining, blending, processing or bulk-breaking), and then are reexported.

• Physical trading where commodities are stored in Singapore.

• Physical trading where commodities are purchased for the purposes of consumption in Singapore.

• Transactions where the commodities are purchased for the supply of fuel to aircraft or vessels within Singapore.

Storage and blending are important business activities for oil traders. This makes Singapore’s oil storage industry attractive.

The scheme is currently available to players trading a broad range of products and commodities in Singapore, including

• energy commodities and products,

• chemicals,

• metals and minerals,

• agricultural commodities and bulk edible products,

• consumer goods,

• industrial products,

• electronics and electrical products,

• building and industrial materials,

• consumer products,

• machinery components and

• carbon credits.

GTP concessionary tax rate applies only to qualifying income from transactions in specified commodities as approved by Enterprise Singapore.

General Criteria

To qualify for the GTP incentive, companies must meet stringent quantitative criteria. An applicant company must satisfy the following conditions:

It is a well established international player (large or medium-sized) and engaged in international physical trading, procurement, distribution and transportation of qualifying commodities and products. International physical principal trading involves having control over key decisions with regard to entering trades, exercising optionality and flexibility across the value chain to match demand and supply, manage trade flows, bear principle title and commercial risks.

It intends to use Singapore as its regional base for its principal offshore trading activities, business activities support and strategic functions, such as:

• compliance and risk management

• general and administrative management control

• business and investment planning and coordination

• financial control, derivatives and treasury functions

• market development and planning

• logistics management, including warehousing and freight services.

It has a wide trading and distribution network and good track record.

It must also be committed to:

• principally conduct substantial international physical trading activities in Singapore,

• incur a significant amount of annual local business spending in Singapore,

• employ a substantial number of experienced trading professionals in Singapore (involved in either procurement/sourcing, sales and marketing, or risk management, may include senior management and can be either locals or expatriates),

• make significant use of Singapore’s banking, financial infrastructure, trade and logistics, trade arbitration and its other supporting services (eg trade institutes, etc.), and

• contribute to manpower training and aid in the development of trading expertise in Singapore throughout the incentive period.

High-growth medium-sized international trading companies that are keen to choose Singapore as their regional base for trading activities can be considered for the concessionary tax rate for an initial, non-renewable three-year period. During this period, the companies can establish and develop their regional or global trading network, with Singapore as their base. Once the companies are able to demonstrate sustainable growth projections that are in line with the requirements of the GTP, they can apply to join for the five-year renewable GTP scheme after the initial three-year period.

There could also be other factors to be considered when evaluating the GTP application, like related party transactions and group manufacturing turnover. The company should ensure that a majority of its physical trading activities involves unrelated parties on the buy and/or sell legs of the transactions. If the company does not meet these benchmark criteria, on application it will be required to show that it can commit to these benchmarks for its projected incentive period.

The fundamental spirit of the GTP status is to provide and incentivise physical trading activities of GTP companies. In any case, the intent of the GTP is to encourage companies to carry out their international physical trading activities in Singapore, and approved GTP companies should ensure that they remain bona fide physical trading companies for the entire incentive period as Enterprise Singapore would monitor the volume of paper versus physical trades on an annual basis.

The classification of qualifying and non-qualifying income is a compliance focus area for the Inland Revenue Authority of Singapore (IRAS). To this end, GTP companies should pay attention and be diligent in the identification of income and expenses.

Approved GTP companies should pay close attention to the classification of qualifying and non-qualifying income and expenses, as well as the allocation basis of indirect expenses, which would be a focus area of review by the Inland Revenue Authority of Singapore (IRAS).

Application

Enterprise Singapore would need to do an initial assessment. Please note that meeting the above criteria does not automatically mean that a company will be approved upon application. These criteria will serve as the requirements to qualify for the initial assessment by the officer in charge.

To better understand your interest, please fill up the attached word doc.

GTP Enquiry Questions.docx

Download DOCX • 19KB

Business Plan Outline for GTP Application

1. Executive Summary

• A concise overview of your company, its mission, and its goals.

• Briefly state why you are applying for the GTP and how your company meets the key criteria.

• Summarize your business model, products, and target markets.

• Include key financial highlights and growth objectives.

2. Company Overview

• Legal Structure: Mention the company's legal name, registration number (e.g., 201408468K), and date of incorporation.

  
  

• Ownership and Management: Provide a brief profile of the key management team, including their experience and roles, especially concerning trading activities.

  
  

• Mission Statement: State the company's purpose and values.

  
  

• Location and Operations: Describe your Singapore office and its role as your sole operational base.

3. Products and Services

• Product Description: Detail the specific commodities you trade (e.g., Palm Oil, Soyabean Oil, Sunflower Oil).

  
  

• Supply Chain: Explain your end-to-end trading process, from procurement to distribution, including logistics, storage, and vessel chartering.

  
  

• Value Proposition: What sets your company apart? (e.g., over 25 years of experience, RSPO license, strong international network).

4. Market Analysis

• Industry Overview: Provide a brief analysis of the global commodities market, specifically for your products.

  
  

• Target Markets: Detail your key trading partners and markets (e.g., Asia and West Africa) and your strategy for expanding this network.

  
  

• Competitive Analysis: Briefly identify key competitors and outline your competitive advantages.

5. Strategic Functions in Singapore

• This section is critical for the GTP application. You should explicitly state how your company performs the following functions in Singapore:

  
  

  • Strategic Management

  • Financial Management and Treasury

  • Risk Management and Compliance

  • Market Research and Planning

  • Logistics Management

  • General Administration

6. Global Network and Track Record

• Provide a list of the countries you trade with and the nature of those relationships.

• Highlight any significant achievements, partnerships, or a proven track record of successful trading.

7. Financial Projections

• Historical Financials: Include your audited financial reports (e.g., for the year ended February 28, 2023).

  
  

• Projected Financials: Provide a detailed forecast, typically for a 3-5 year period. This should include:

  
  

  • Projected Turnover: Break down your expected revenue by product, region, or counterparty.

  • Projected Local Business Spending: Provide a detailed forecast of your expenses in Singapore, including payroll, professional fees, rent, utilities, and bank charges.

  • Projected Headcount: State the planned growth in your number of employees, especially trading professionals, over the projection period.

  • Capital Expenditure: Detail any planned investments, such as for new offices or systems.

    
    

• Assumptions: Clearly state the key assumptions behind your financial projections (e.g., average commodity prices, volume growth, and exchange rates).

Financial Projections Template (Key Tables)

You can use a structured format with tables to present your financial projections clearly.

Year	FY2025 (Projected)	FY2026 (Projected)	FY2027 (Projected)
Projected Revenue
- Palm Oil
- Soyabean Oil
- Sunflower Oil
Total Turnover

Year	FY2025 (Projected)	FY2026 (Projected)	FY2027 (Projected)
Local Business Spending
- Salaries & Wages
- Rent (Office)
- Professional Fees
- Bank Charges & Interest
- Other Operating Costs
Total Local Spending

This outline provides you with the clarity needed to prepare a strong and detailed application.

Fees Associated with the Global Trader Programme (GTP) in Singapore

There are generally no direct government application fees for the GTP itself, but significant professional fees arise from engaging consultants.

Here's a breakdown of fees, acknowledging that these can vary widely based on the specific company, and complexity:

I. Government-Related Fees (Minimal & General)

• GTP Application Fee to Enterprise Singapore: S$0 (Generally no direct application fee). The "cost" to the government is the tax revenue foregone due to the concessionary tax rates.

  
  

II. Professional Consultation & Advisory Fees (Most Significant Costs)

These fees cover the expertise and time of specialists to navigate the complex GTP application and ensure compliance.

• 1. Initial Assessment & Feasibility Study:

  
  

  • Scope: Preliminary review of your company's current operations, financial figures, and strategic objectives against GTP eligibility criteria (e.g., US100M annual turnover, S$3M local business spending, 3 trading professionals). Identifying gaps and potential challenges.

  • Fee: S$5,000 - S$20,000

  • Rationale: This involves Bestar reviewing significant data and providing strategic advice on the likelihood of success.

    
    

• 2. Full GTP Application Preparation & Submission:

  
  

  • Scope: This is the core service. It involves:

    
    

    • Developing a comprehensive business plan tailored to GTP requirements, highlighting strategic contributions to Singapore.

    • Preparing detailed financial projections and demonstrating how quantitative criteria (turnover, local spending) will be met.

    • Assisting with the compilation of all necessary supporting documentation (corporate structure, trading activities, personnel profiles).

    • Drafting and reviewing the official application forms.

    • Liaising with Enterprise Singapore throughout the application process, responding to queries, and participating in meetings.

    • Advice on structuring trading activities to optimize for GTP benefits.

      
      

  • Fee: S$50,000 - S$250,000+

    
    

  • Rationale: This is a highly intensive and specialized service. The range varies greatly depending on:

    
    

    • Company Size & Complexity: Larger, more diversified trading operations require significantly more effort.

    • Data Readiness: How well-organized and complete your internal data is at the outset.

    • Negotiation: The extent of discussions and negotiations required with Enterprise Singapore.

      
      

• 3. Ongoing Compliance & Reporting Advisory (Post-Approval):

  
  

  • Scope: Once approved, companies must continuously meet the GTP conditions. This service includes:

    
    

    • Annual review of compliance with quantitative (turnover, spending, headcount) and qualitative requirements.

    • Assistance with annual reporting to Enterprise Singapore.

    • Advice on any changes to business operations that might impact GTP status.

    • Support during potential GTP reviews or audits by authorities.

      
      

  • Fee (Annual Retainer/Project Basis): S$10,000 - S$50,000+ per annum

    
    

  • Rationale: Ensures the company maintains the incentive. Often structured as an annual retainer or on a project-by-project basis for specific advice or reporting cycles.

    
    

Summary Table of Fees:

Category	Description	Fee (SGD)	Notes
Government-Related Fees
GTP Application Fee	Direct fee to Enterprise Singapore	S$0	This is a tax incentive; no direct application fee.
Professional Advisory Fees
Initial Assessment	Feasibility study, gap analysis	S$5,000 - S$20,000	Essential first step to determine viability.
Full Application Preparation	Business plan, financial projections, documentation, liaison with ESG	S$50,000 -S$250,000+	The most substantial cost; highly dependent on complexity. Can be higher for very large/complex cases.
Ongoing Compliance & Reporting	Annual reviews, reporting, general compliance advice	S$10,000 - S$50,000+ (annual)	Critical for maintaining GTP status and benefits. An ongoing retainer.

Important Considerations:

• Value Proposition: While these fees may seem substantial, the tax savings from the GTP's concessionary rates (5% or 10% vs. the standard 17% corporate tax rate) can be far greater, making the professional fees a worthwhile investment.

  
  

• Phased Approach: Bestar offers a phased approach, where the initial assessment is a standalone fee, and the full application proceeds only if there's a good chance of success.

Companies seeking GTP status should budget for significant professional fees to ensure a robust application and ongoing compliance.

How Bestar can Help

Bestar’s Tax Advisory department is made up of professionals with extensive experience assisting clients with incentive applications and negotiations, as well as with extensive experience formulating and administering incentives. With our experience, we can assist your business in the following areas:

• Assess whether your business meets the qualifying conditions to benefit from the GTP, taking into consideration your company’s financial projections and business plan for the Singapore operations

• Liaise and negotiate with relevant authorities for the initial incentive application as well as the renewal of the incentive on behalf of the company

• Review your internal controls and processes with a view to benefit from the GTP

If you would like to know more about our services, please contact Bestar.

Global Trader Programme

Global Trader Programme | Bestar