Insights on Global Traders Programme (GTP)

Administered by Enterprise Singapore (ESG), the GTP was launched with the vision to entice companies to use Singapore as a regional hub for their global trading activities. Approved companies under the GTP would be able to enjoy concessionary tax rate of 5% or 10% for 3 or 5 years on income deriving from qualifying transactions (i.e. physical trading, brokering of physical trades and derivative trading income), subject to conditions.

The GTP which was slated to lapse after 31 March 2021, will be seeing an extension and refinement to further strengthen Singapore’s position as a global trading hub and to encourage more structured commodity financing activities in Singapore.

Through the recently delivered Singapore Budget 2020, the GTP will be extended till 31 December 2026. In addition, the qualifying activities of GTP (Structured Commodity Financing) (GTP(SCF)) will be subsumed under the existing GTP with effect from 19 February 2020. This will allow companies deriving income through SCF activities to enjoy the concessionary tax rates without having to separately apply for the GTP(SCF). Lastly, the concessionary tax rate of 5% on income from qualifying transactions in Liquefied Natural Gas (LNG) will lapse after 31 March 2021. With the lapsing of this concession, LNG will be treated no differently from other qualifying commodities under the GTP.

Broadly, the GTP would be applicable for companies that are engaged in international trading, possessed good track records and are looking to establish their trading bases in Singapore. In addition to these criteria, ESG would require companies to fulfil the following:

1. Have an annual turnover of US$100 million;

2. Incur local expenditure of S$3 million; and

3. Employ 3 trading professionals involving relevant activities such as trading, risk management, sales and marketing, etc.

Each application would be thoroughly examined by ESG and the GTP will be approved to companies that are committed to drive the economy of Singapore.

GTP is an attractive tax incentive that is useful for businesses in international trade. However, the route to ensure that businesses are eligible for GTP may not be easy. We would be pleased to help you assess the applicability of the GTP Incentive to your business and guide you through the application process where applicable.

For more information, please contact:

Edwin Leow

Director, Head of Tax

Nexia TS, Singapore

+65 6536 1312

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