A split in tax system may be in Singapore's future: tax expert

Singapore

AS the world moves closer to agreeing on corporate tax changes that will affect countries all across the globe - with Singapore's own Finance Minister predicting an overhaul of the tax system - the end result for many jurisdictions could well be two separate tax regimes: one for large multinational enterprises (MNEs), and a different set of rules for all the others.

Singapore needs to prepare for this now, or at the very least be ready to review aspects of its corporate tax system that would likely be affected by global developments, including the tax treatment of foreign-sourced income, the non-taxation of capital gains and tax incentive awards, while keeping an eye on the compliance burden on companies, say tax experts.