Global Traders Programme (GTP)
2020-04-09
Trademark rights
2020-05-04
Finance and Treasury Centre (FTC) Incentive
The Finance and Treasury Centre Incentive is aimed at encouraging companies to grow treasury management capabilities and use Singapore as a base for conducting treasury management activities for the region. Typically, an FTC is part of a larger presence of a company in Singapore, which may include manufacturing, R&D or a range of headquarters activities.
An approved company under the FTC programme is eligible for a concessionary tax rate of 8%, based on income derived from qualifying activities. This will be based on qualifying income derived from qualifying FTC services to approved network companies (ANCs) as well as qualifying FTC activities carried out on its account with funds obtained from qualifying sources.
The incentive period is limited 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.
To qualify, companies must meet quantitative and qualitative criteria such as business spending, employment created (including skills, expertise and seniority in the FTC team), total business expenditure which generates spin-off to the economy, as well as the scale of the FTC operations in the depth and breadth of the services and activities. Companies are also encouraged to grow capabilities through working with potential partners, such as in the professional services and financial sectors.
Applicant companies must establish substantive activities in Singapore and perform strategic functions. Key activities should include control over the management of cash and liquidity position, provision of corporate finance advisory services, management of interest rate, foreign exchange, liquidity and credit risks, as well as overall business planning, investment research and analysis.
Services provided by FOZL for application of Finance and Treasury Centre Incentive programme
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Provide advisory and support client in defining the trading activities that would align with the client’s business plans to use Singapore as a Finance & Treasury Centre as well as qualify for FTC incentive requirement.
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Support client in defining the qualifying income that would be able to enjoy the 8% corporate tax incentive.
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Support client in the discussion and negotiation with relevant government agency on the scope of qualifying activities and qualifying income.
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Support client in drafting the required application documents.
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To support client in the submission of documents during the application process.