Scaling Beyond Singapore: How Budget 2026 Cuts the Cost of Going Overseas (EDGE, DTDi and EFS)

By Lucas Seah, Founder of Excellence Singapore Group | Last Updated: October 2026

Budget 2026 made going overseas cheaper in three ways. Grant support for SMEs’ overseas activities rose to up to 70%, and since 30 September 2026 it comes through the EDGE grant, which replaced the Market Readiness Assistance (MRA) grant. The Double Tax Deduction for Internationalisation (DTDi) lets you claim a 200% tax deduction on up to S$400,000 of qualifying expenses per year of assessment without prior approval from YA 2027, up from S$150,000. And the Enterprise Financing Scheme (EFS) removed the separate caps on trade and fixed asset loans from 1 April 2026.

Short on time? Jump to the DTDi tax deduction or EDGE grant support.

Key Takeaways

• MRA ceased on 29 September 2026. Overseas activities now get up to 70% support for SMEs (50% for larger companies) under EDGE, within S$100,000 per company per grant year.
• DTDi gives a 200% tax deduction on qualifying overseas expansion costs incurred up to 31 December 2030. From YA 2027 you can claim it on up to S$400,000 per YA without prior approval, and five more activities qualify automatically.
• DTDi is computed on costs net of grants, so you can claim it on the part of an EDGE-supported cost your company bore.
• EFS Trade Loans and Fixed Assets Loans are now limited only by the S$50 million overall cap per borrower group; the Working Capital and Venture Debt loans keep their own caps.

Grants: EDGE now covers what MRA did

Budget 2026 raised Market Readiness Assistance (MRA) grant support for SMEs from 50% to 70% of eligible costs from 1 April 2026. MRA then ceased on 29 September 2026, together with the Productivity Solutions Grant and the Enterprise Development Grant, and from 30 September overseas expansion support comes under one grant, EDGE.

• Support: up to 70% of qualifying costs for SMEs and up to 50% for larger local companies, which could not use MRA. An SME has group annual sales of up to S$100 million or up to 200 workers.
• Cap: S$100,000 per company per grant year (1 April to 31 March), shared across every EDGE activity, including software and equipment. Grants received under MRA do not count against it.
• Activities: market entry setup, overseas business development staff, finding overseas partners, overseas marketing and PR, overseas trade fairs, international branding, and international financial and tax planning. Each needs its own application, with one application per market.
• Existing markets qualify. The old MRA rule that you must be new to the market was removed under EDGE, so you can get support to grow a market you already sell to.
• Existing MRA projects carry on. Applications submitted before 30 September 2026 are assessed under MRA’s rules, and ongoing projects are supported until completion and payout, according to the EDGE FAQ.

Apply on the Business Grants Portal before you commit to any cost: EDGE does not support work started, or any payment or deposit made to a vendor, before you submit. The exception is overseas trade fairs, where a payment or deposit to secure booth space before you apply is allowed. Our EDGE grant guide covers the full scheme, and our Malaysia expansion guide walks through the overseas activities with a worked example.

The DTDi tax deduction

DTDi lets your company deduct 200% of qualifying expenses on international market expansion and investment development activities, instead of the usual 100%, for spending incurred up to 31 December 2030, according to IRAS.

The automatic cap rises to S$400,000 from YA 2027. You can claim DTDi without prior approval from Enterprise Singapore or the Singapore Tourism Board (STB) on qualifying expenses up to a cap per year of assessment (YA): S$150,000 for YA 2019 to YA 2026, and S$400,000 from YA 2027. The cap is per company, however many activities you claim, and any unused amount cannot be carried forward. Because companies are taxed on the previous year’s income, YA 2027 covers your financial year ending in 2026; for a December year end, that is your 2026 spending.

Five more activities qualify automatically from YA 2027, and all eligible expenses on overseas market development and investment study trips no longer need approval:

Source: IRAS, Double Tax Deduction for Internationalisation, and Enterprise Singapore, list of qualifying activities, read October 2026. Each activity has its own list of qualifying expenses.

When you still need approval. Apply to Enterprise Singapore or STB before the project starts for spending above the S$400,000 cap, for an overseas trade office (which since 1 January 2026 also covers posting Singaporean or PR staff overseas) and for e-commerce campaigns, which are approved for at most one year per country. Salaries of staff posted overseas, together with overseas investment development costs, are capped at S$1 million per approved entity per YA. DTDi does not cover the initial costs of setting up an overseas office, such as legal and regulatory fees or buying office equipment.

How to claim. Include the expenses as further deductions in your company’s tax return. You do not send documents to IRAS upfront for automatic claims, but you must keep proof of each expense and its purpose and produce it if IRAS asks. For approved claims, attach Enterprise Singapore’s Letter of Support when you file.

An example. An SME with a December year end spends S$300,000 in 2026 on overseas trade fairs and advertising, net of any grants. Under the old S$150,000 cap, half of that would have needed approval. For YA 2027 it is all within the automatic cap, so the company deducts S$600,000 instead of S$300,000. The extra S$300,000 deduction is worth up to S$51,000 of tax at the 17% corporate tax rate.

Loans: the Enterprise Financing Scheme

The Enterprise Financing Scheme helps companies borrow from participating financial institutions by having the government share the lender’s risk of default. You still repay the loan in full. To qualify, your company must be registered and operating in Singapore, be at least 30% owned by Singapore citizens or permanent residents, and have group annual sales of up to S$500 million. The Working Capital and Fixed Assets loans are only for SMEs, with group revenue of up to S$100 million or up to 200 employees.

What changed on 1 April 2026. At the Committee of Supply debate on 2 March 2026, the Ministry of Trade and Industry (now the Ministry of Energy, Trade and Industry) announced that it would remove the separate sub-caps on the Trade Loan (S$20 million per borrower group) and the SME Fixed Assets Loan (S$30 million) from 1 April 2026, keeping the overall cap of S$50 million per borrower group across all EFS loans. The Mergers and Acquisitions Loan was also permanently widened to cover domestic as well as overseas acquisitions.

Source: Enterprise Singapore, Enterprise Financing Scheme facility pages, read October 2026. The S$50 million limit applies per borrower group across all EFS loans.

Not every loan was uncapped. The Working Capital Loan still has its own limits of S$500,000 per borrower and S$5 million per borrower group, and the Venture Debt Loan keeps S$8 million per borrower and S$20 million per borrower group, all within the S$50 million overall cap.

A temporary boost to March 2027. From 1 September 2026 to 31 March 2027, the government’s risk share on the Working Capital Loan and the Project Loan is 70% for all enterprises, up from the usual 50%, and the Project Loan also covers secured domestic construction projects. Our working capital loan guide explains how the Working Capital Loan works.

Using the three together

The three schemes do different jobs, and you can combine them:

• EDGE pays part of the cost of approved overseas activities, by reimbursement after the project.
• DTDi then reduces the tax on what you spent. Enterprise Singapore’s EDGE FAQ confirms you can claim DTDi on the same expenses, computed on the cost net of the grant.
• An EFS loan funds what grants do not, such as stock, equipment or working capital. EDGE’s overseas activities pay for professional services, trade fair booths, marketing, and overseas staff salaries and office rent, not for stock or assets.

For example, an SME spends S$20,000 on booth space and booth construction at an overseas B2B trade fair. EDGE can reimburse up to S$14,000 (70%), and the company then claims DTDi on the remaining S$6,000, a deduction of S$12,000.

Records that protect your claims

Grant claims and tax deductions are both checked against your records, so set them up before the first overseas cost:

• Record overseas costs separately from local spending, by market and by activity, so the grant claim and the DTDi claim can each be traced to the invoices.
• Keep unedited evidence. EDGE’s claim document list asks for tax invoices and bank statements exported from internet banking, with nothing masked, cropped or folded.
• Track each grant against the cost it funds, so DTDi is claimed only on the share of the cost your company bore.
• Document recharges. If an overseas subsidiary pays a cost for a Singapore-led project, recharge it to the Singapore company through an internal cost transfer, because the Singapore company is the grant applicant.
• Keep your shareholding current with ACRA. EDGE needs at least 30% Singapore citizen or permanent resident ownership, at application and when you claim.
• Keep DTDi evidence for every claim. For trips, keep the purpose and itinerary and a list of the companies you met, together with the invoices and receipts. IRAS can ask for them after you file.

How we help

Excellence Singapore Group does not write grant proposals, and Enterprise Singapore does not allow a vendor, consultant or corporate secretary to submit a grant application for you. Where we help is the company side:

• Accounts that support your claims, prepared by our accounting team, with overseas expansion costs recorded separately from local spending.
• Tax filings that claim what you are entitled to, including DTDi on qualifying expenses, through our tax team.
• Clean ACRA records and group structure, through our corporate secretarial team, so your shareholding and any overseas subsidiaries are on record.

For more detail, see our EDGE grant guide and our guide to expanding into Malaysia.

Frequently Asked Questions

What replaced the MRA grant?

The EDGE grant. MRA ceased on 29 September 2026, and from 30 September overseas activities such as market entry setup, trade fairs, overseas marketing and business development staff come under EDGE, at up to 70% for SMEs and 50% for larger companies, within S$100,000 per company per grant year.

What is the DTDi scheme in Singapore?

The Double Tax Deduction for Internationalisation lets a company deduct 200% of qualifying expenses on international market expansion and investment development activities, such as overseas trade fairs, market surveys and overseas advertising. It covers qualifying spending incurred up to 31 December 2030, and expenses are computed net of any government grants.

Do I need approval to claim DTDi?

Not for the automatic activities, within a cap per year of assessment: S$150,000 for nine activities up to YA 2026, and S$400,000 for 14 activities from YA 2027. You need prior approval from Enterprise Singapore or STB for spending above the cap, overseas trade offices and e-commerce campaigns, and you must apply before the project starts.

Can I claim DTDi and EDGE on the same expense?

Yes, if the expense qualifies for both. Enterprise Singapore’s EDGE FAQ says companies can also claim DTDi on the same expenses, computed net of the EDGE grant. So if EDGE reimburses S$14,000 of a S$20,000 trade fair booth, you claim DTDi on the remaining S$6,000, a deduction of S$12,000.

How much can I borrow under the EFS?

It depends on the loan. The Working Capital Loan is capped at S$500,000 per borrower, and the Venture Debt Loan at S$8 million per borrower. Since 1 April 2026, the Trade Loan and Fixed Assets Loan have no separate caps, so they are limited only by the S$50 million overall limit per borrower group.

Planning to expand overseas?

Grants and tax deductions both depend on records kept from day one. Talk to us about getting your accounts, tax filings and company records ready before you commit to an overseas project.