The Global Trader Programme was launched in June 2001. Companies who are in the Global Trader Programme (commonly abbreviated to GTP) enjoy a concessionary tax rate of 10% on their qualifying trade income. GTP companies get the concessionary tax rate for a 5-year renewable period.
In 2003, an announcement was made by the Singapore Government: international trading companies that are of a medium size and enjoying high growth, who are planning to make Singapore their regional base can be considered for the 10% concessionary tax rate, for a starting, non-renewable 3-year period. In those 3 years, with Singapore as their base of operations, it is expected that the trading company in question establishes and builds up their regional/global trading network. After this initial 3-year period, if the company has been able to demonstrate healthy and sustainable growth projections, in line with the requirements of the Global Trader Programme, they can then apply for the 5-year renewable Global Trader Programme scheme.
The GTP was created as an incentive to global trading companies, an encouragement to choose Singapore as their regional or global base for conducting business activities all along the total trade value-add chain, ranging from the procurement stage to the distribution stage, with the intention of expanding into the region and beyond.
The Global Trader Programme was launched by International Enterprise Singapore. IE Singapore is an agency under Singapore's Ministry of Trade and Industry; its mission is to oversee and promote the growth of Singapore-based enterprises overseas, as well as improve and encourage international trade by promoting Singapore as a viable global base for foreign business, helping these foreign businesses expand into the region, and doing that by going into partnership with Singapore-based companies.
Singapore is a big player in the import/export trade market - with its strategic position in Southeast Asia, many see it as connecting both the eastern and western hemispheres in terms of trade. This dominance is clearly reflected in Singapore's many state-of-the-art import/export services and procedures, as well as its connections to hundreds of ports all around the world.
It does appear to have enjoyed a good amount of success, yes. The GTP has attracted a robust group of global trading companies over the years, companies that have decided to make Singapore the hub of their strategic business functions. Today, it is estimated that more than 270 global trading companies have made Singapore their regional/global base of operations. Some of these include Shell, BP, China's Tianbao Petroleum and the Hong Kong-based Noble Group (which is one Asia's biggest commodity groups).
You can apply to join the Singapore's Global Trader Programme if:
1. You are a well-established medium or large-sized international company, and you conduct international trading, procurement, distribution and the transportation of qualifying commodities and products (see below for details).
2. You are a bone fide company with a global network, and possessing a good track record.
3. You intend to make Singapore your regional base for your principal offshore trading activities, business activities and support functions, which would include:
4. You ensure that you will be:
In addition to the points mentioned above, any company that applies to the Global Trader Programme is required to meet the benchmarks listed below:
If the company applying to the GTP does not meet these benchmarks, it will be required to show that it can commit to these benchmarks in the projected incentive period.
Important Note: When applying to join the Global Trader Programme, the authorities will be going through the overall business plan with intense scrutiny. What they are looking for in your business plan is whether your company will be making significant contribution to the Singapore economy.
Qualifying commodities, physical trade and transactions under the GTP you should be aware of:
There is a list of products and commodities allowed under the GTP. The authorities periodically review and update this list. The current list includes these products and commodities:
The following types of physical trade are the only ones that quality under the GTP:
When it comes to transactions that qualify under the GTP, your company is allowed engage in principal trades, both buy and sell transactions, with offshore parties or other companies under the GTP.
We have a team of Accountants,Bankers and compliance experts who can advice on Singapore's Tax Regime(IRAS) & various regulatory frameworks such as ACRA to offer you a customized advisory services that include: