Budget 2023: Singapore to implement global tax floor for corporates on Jan 1, 2025

• Singapore will implement global minimum corporate tax of 15% in 2025
• It also introduces Domestic Top-up Tax, raising effective tax rate to 15%
• New tax regime to level playing field as governments will have to compete on non-tax incentives

SINGAPORE will implement a Domestic Top-up Tax (DTT) as it adjusts its corporate tax regime to meet the global push for a minimum tax of 15 per cent for multinational enterprises (MNEs) with income in excess of 750 million euros (S$1.1 billion), starting on or from Jan 1, 2025.

In his Budget speech on Tuesday (Feb 14), Finance Minister Lawrence Wong said the situation remains “fluid”. Some key parameters of the proposed global tax floor have only been finalised this year, while others remain under discussion.

Many jurisdictions plan to implement the new tax rule progressively and “the full effects will only be felt in 2025 or later”.