Foreign Investment Schemes in Singapore

Singapore, a global financial hub, actively encourages foreign investment through various schemes designed to attract businesses and individuals looking to establish a presence or expand their operations in the region. These schemes offer attractive incentives and support, solidifying Singapore’s reputation as a premier investment destination.

Key Investment Schemes

• Financial Sector Incentive (FSI) Scheme

  This scheme, managed by the Monetary Authority of Singapore (MAS), aims to promote the growth and development of the financial sector. It offers tax incentives to financial institutions engaged in specific activities such as fund management, insurance, and treasury operations. Different tiers within the FSI scheme offer varying levels of tax concessions, encouraging companies to undertake higher-value activities in Singapore.

• Pioneer Certificate Incentive

  This incentive is granted to companies undertaking new and significant economic activities that are not yet well-established in Singapore. It offers a corporate income tax exemption on qualifying profits for a period of five to fifteen years, depending on the investment and its potential impact on the economy. This incentivizes companies to bring innovative technologies and industries to Singapore.

• Development and Expansion Incentive

  Designed for companies looking to expand their existing operations or undertake new projects that contribute significantly to Singapore’s economic growth, this incentive offers a reduced corporate income tax rate of 5% or 10% for a specified period (up to 10 years). The eligibility criteria include factors like job creation, technology transfer, and increased spending in Singapore.

• Global Trader Programme (GTP)

  The GTP encourages companies involved in international trading activities to establish and expand their operations in Singapore. Approved companies benefit from a concessionary tax rate on qualifying trading income. This attracts global trading firms to use Singapore as their base for regional and international trade.

• Investment Allowance (IA)

  This incentive allows companies to deduct capital expenditure incurred on qualifying projects from their taxable income. It reduces the tax burden for companies investing in automation, research and development, and other activities that enhance productivity and competitiveness. This encourages companies to upgrade their facilities and processes.

Beyond Schemes: A Favorable Investment Climate

Beyond specific schemes, Singapore’s robust legal framework, political stability, skilled workforce, and excellent infrastructure contribute to a conducive investment climate. The government’s commitment to innovation and its pro-business policies make Singapore an attractive destination for foreign investors seeking long-term growth and success.