What is Singapore GTP?
Singapore launched Global Trader Programme in June 2001.It is an initiative that encourages global trading companies choose Singapore as their regional / global base of operations by providing preferential tax rates.
Companies that want to use the unique advantages of Singapore, can register their presence in the country, if they meet certain basic criteria, and comply with the requirements.
What is a Global Trader Programme in Singapore?
Established in June 2001, Global Trader Programme is a symbiosis of programs Approved Oil Trader (AOT) and Approved International Trader (AIT), which began in 1989 and 1990 respectively.
Program Approved Oil Trader (AOT) is aimed at the growing the role of Singapore as an oil center in the region. Shortly thereafter, in order to attract oil companies, it began a program of international traders Approved International Trader (AIT).
Twenty years later, the two programs were merged into GTP, which now allows the expansion of the product for trade companies, including energy and raw materials.
The main purpose of implementing of such a program is to strengthen Singapore’s position as a preferred regional base for global traders trading. GTP aims to achieve its goal, allowing companies (which are part of the program) a 10% preferential tax rates, which are imposed on qualifying trading income for five years.
Also in 2003, Singapore government announced that increase of average international trading companies, which tend to choose Singapore as their regional base for commercial activities, can be considered for preferential tax rates for the initial 3-year period.
During this period, companies can establish and develop their regional or global sales network in Singapore. Once the company is able to demonstrate sustained growth forecasts, which are in accordance with the GTP, they can apply for the GTP schemes renewable for 5 years after the initial 3-year period.
Next we will talk about the requirements for GTP applicants but first it need to be mentioned that if you want to incorporate your business to Singapore you need to get a visa. Employment Pass and EntrePass are designed specifically for foreign businessmen. Considering short terms and high pace of life of entrepreneurs visa consulting firms are created. They can give all the required information and help to obtain visa quickly. As an example One Visa, Visa Express, Singapore Visa Center.
Who can apply for the Global Trader Programme in Singapore?
You can apply for the Global Trader Programme, if:
- You have an international company (large or medium-sized), and it provides international trade procurement, distribution and transportation of qualified commodities and products.
- You intend to use Singapore as a regional base for the main offshore trading activities, business and support functions, including:
- general management and administration;
- business and investment planning and coordination;
- function of financial management and treasury;
- market development and planning;
- management of logistics services including warehousing and transportation
The company must have good reputation and global network. In addition the company – applicant will be required to meet the following criteria:
- The minimum annual turnover – 100 million US dollars;
- The minimum annual rate of local business spending – SGD 3 million;
- The minimum level of employment of trading professionals -3 (involved in the procurement / logistics, sales and marketing).
Here you have another prove of friendliness of Singapore Government to foreign business. Over the years Singapore has turned from third world country into economical marvel and continues to grow. All that was possible thanks to smart international politic which is continuing.