The Global Trader Programme (GTP) was introduced in 2001. The objective of the program is to boost Singapore’s position as the preferred regional base for the trading operations of global traders. Well-established international players in their industry that have a wide trading and distribution network and are committed to expanding their operation from Singapore may apply to qualify for GTP.  This would include large size commodity traders, large manufacturers, and large-scale distributors.

An approved company under the GTP programme is eligible for a concessionary tax rate of 10%, based on income derived from qualifying activities. The qualifying activities will be defined during the application process. The incentive period is limited to three to five years. Extension of the incentive may be considered, subject to the company’s commitment to undertake further expansion plans. The income from the non-qualifying activity is not eligible for the incentive.

GTP programme requires applicant companies to carry out physical trading, which involves having authority over trades through taking legal title of goods and owning contracts, to have key decision makers exercising control over the trades and related contracts, to employ skilled employees to perform significant trading and supporting business activities.

To qualify, companies must meet quantitative and qualitative criteria such as business spending, employment of trading professionals with necessary skills and expertise, and generate spin-offs to the other industries in Singapore, such as logistics, financing and other ancillary services in Singapore and contribute to manpower development in Singapore.

Services provided by FOZL for application of Global Traders Programme (GTP) programme

• Provide advisory and support client in defining the trading activities that would align with the client’s business plans to use Singapore as an international/regional trading hub as well as qualify for GTP incentive requirement.

• Support client in defining the qualifying income that would be able to enjoy the 10% corporate tax incentive.

• Support client in the discussion and negotiation with relevant government agency on the scope of qualifying activities and qualifying income.

• Support client in drafting the required application documents.

• To support client in the submission of documents during the application process.