G-7's global minimum tax deal may nullify any tax advantage Singapore offers

Countries with large domestic markets may benefit as MNCs will have to pay larger proportion of their taxes to countries where sales are generated

Angela Tan

Published Mon, Jun 7, 2021 · 05:50 AM

G-7

Singapore

THE historic tax agreement by the Group of Seven (G-7) could nullify any tax advantage Singapore offers to multinational corporations (MNCs), leaving a question mark over how this will affect their investment decisions to continue to operate here, tax experts say.

But countries with large domestic markets such as Indonesia may benefit from the global tax deal given that MNCs will have to pay a larger proportion of their taxes to countries where sales are generated, says Chua Hak Bin, senior economist at Maybank Kim Eng.