OECD's proposed tax changes may hit revenue for Singapore

Singapore

THE international community is considering resetting the rules that could fundamentally change the global tax landscape. Singapore's position is to improve the current value creation concept rather than have it replaced by an approach that focuses on the size of the market.

The city-state further asks that there be no minimum effective tax and to let jurisdictions be allowed to pursue their own policy mix appropriate to their circumstances and developmental needs, said Indranee Rajah, Second Minister for Finance and Education.

Tax professionals said if the international community's proposals on direct taxation are adopted, Singapore may well see a reduction in tax revenue.

The Organisation for Economic Co-operation and Development (OECD) is working on a global consensus solution by 2020 for tax issues presented by the digitalisation of the economy. It was proposed that taxing rights be shifted from where value is created to jurisdictions where consumers are or the destination-bas…