Singapore's tax regime deemed to pass muster in tax avoidance overhaul

Singapore

SINGAPORE'S strategic use of tax incentives to draw investments that create economic value is unlikely to be marred by sweeping international tax reform launched on Monday to weed out tax avoidance, tax experts say.

The reform led by the Organisation for Economic Co-operation and Development (OECD) - which has been openly supported by the Singapore government - could also raise the country's competitiveness through nuanced tax incentives, as the recommendations put strong pressure on large global corporations to stop abusing tax loopholes created by different regimes around the world.

In a statement on Tuesday, Finance Minister Heng Swee Keat said the new recommendations should be "consistently applied across all state and non-state tax jurisdictions to ensure a level playing field". This would maintain…