New e-commerce tax measures a boon for Singapore

BRICK-and-mortar retailers and governments around the world have cause to cheer: members of the Organisation for Economic Co-operation and Development (OECD) last week endorsed new rules and frameworks for the collection of taxes on online sales of goods.

The significance of this development cannot be overstated: the new measures will go a long way in levelling the playing field between operators in traditional and online markets (with the latter having enjoyed a tax advantage this whole time), and provide governments with the roadmap and support they need to capture these additional tax revenues; both are challenges which have been dogging jurisdictions around the world since the advent of this new digital age.

The proposal of such measures - which took place at meetings in Melbourne, Australia, over March 20 to 22 - is especially timely and relevant for Singapore.