Global minimum corporate tax unlikely to cause US capital flight from Asia

Singapore

CALLS for a global minimum corporation tax rate, if implemented, may see some American companies restructuring to shift certain functions back home or elsewhere, but an exodus of US capital from high-growth Asia is unlikely, tax experts say.

Any such move, however, means low-tax jurisdictions in Asia such as Hong Kong, Thailand, Vietnam and Singapore can no longer rely on tax policies to attract foreign direct investments (FDIs) in the future. Instead, they must focus on non-tax incentives.