Singapore Development and Expansion Incentive

Singapore Development and Expansion Incentive | Bestar

Singapore Business Incentives

Singapore offers several incentives to encourage businesses to develop and expand their operations within the country. One of the key incentives is the Development and Expansion Incentive (DEI).

Development and Expansion Incentive (DEI)

The DEI is designed to attract companies that are looking to undertake new high-value-added projects, expand or upgrade their existing operations, or engage in incremental activities after their pioneer period.

Key Benefits of DEI:

• Reduced Tax Rate: Companies can apply for their profits to be taxed at a reduced rate of not less than 5% for an initial period of up to ten years.

• Investment Credit: Companies making significant investments in key economic sectors or new growth areas can receive up to 50% investment credit on qualifying expenditure. This credit can be offset against income tax or refunded in cash.

Eligibility Criteria:

To be eligible for the DEI, companies must meet specific criteria, including:

• New or Expanded Activities: The project or activity must involve new or expanded economic activities in Singapore.

• High Value-Added: The project or activity must contribute to Singapore's economic growth and development.

• Substantial Investment: The company must make a significant investment in the project or activity.

How to Apply:

Companies interested in applying for the DEI should contact the Singapore Economic Development Board (EDB). The EDB will assess the company's application and determine eligibility for the incentive.

Additional Incentives:

In addition to the DEI, Singapore offers a range of other incentives to support business development and expansion, including:

• Pioneer Certificate Incentive (PCI): This incentive provides tax breaks for new companies setting up operations in Singapore.

• Research and Development (R&D) Incentives: Singapore offers various tax deductions and grants to encourage R&D activities.

• Corporate Income Tax: Singapore has a competitive corporate income tax rate of 17%.

For more detailed information and to apply for incentives, please visit the Singapore Economic Development Board website: https://www.edb.gov.sg/en/

By understanding and leveraging these incentives, businesses can significantly reduce their tax burden and enhance their competitiveness in Singapore.

How Bestar Can Help with Singapore's Development and Expansion Incentives

Bestar, a leading business solutions provider in Singapore, can significantly aid businesses in navigating and maximizing the benefits of Singapore's Development and Expansion Incentive (DEI) and other government incentives. Here's how:

1. Eligibility Assessment and Application Assistance:

• Understanding Eligibility Criteria: Bestar can help you assess your company's eligibility for the DEI based on factors like investment amount, job creation, and technological advancement.

• Document Preparation: We can assist in compiling the necessary documentation, including financial projections, business plans, and technical reports, to support your application.

• Submission and Follow-up: Bestar can guide you through the application process, ensuring timely submission and effective follow-up with the relevant authorities.

2. Financial Advisory and Tax Planning:

• Tax Minimization Strategies: Bestar's tax experts can help you identify potential tax savings and optimize your tax structure to maximize the benefits of the DEI.

• Financial Projections and Modeling: We can assist in developing accurate financial projections to demonstrate the economic impact of your project and support your application.

• Cost-Benefit Analysis: Bestar can conduct a thorough cost-benefit analysis to evaluate the financial implications of the DEI and other incentives.

3. Compliance and Reporting:

• Adherence to Regulations: Bestar can ensure that your company complies with all relevant regulations and reporting requirements associated with the DEI.

• Regular Monitoring and Reporting: We can help you track key performance indicators and submit regular progress reports to the authorities.

• Audits and Reviews: Bestar can assist with audits and reviews to maintain compliance and avoid penalties.

4. Leveraging Additional Incentives:

• Identifying Synergies: Bestar can help you identify other relevant government incentives, such as the Pioneer Certificate Incentive (PCI) or R&D grants, and explore potential synergies.

• Strategic Planning: We can help you develop a comprehensive strategic plan to maximize the benefits of multiple incentives and achieve your business objectives.

By partnering with Bestar, businesses can streamline the process of applying for and utilizing Singapore's development and expansion incentives. Our expertise in corporate finance, tax, and regulatory compliance can help you navigate the complexities and optimize your business strategy.

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