Singapore's tax system toughens up

WITH the Organisation for Economic Co-operation and Development's (OECD) Action Plan on Base Erosion and Profit Shifting (BEPS) gaining momentum, the tax affairs of multinationals have been splashed across the media all over the world for various reasons.

Singapore has had its fair share of the spotlight too. Some commentators have described Singapore as a "tax haven", in the same breath as the Cayman Islands and British Virgin Islands. Although many would readily recognise that such comparisons are erroneous, unfortunately such labels often stick in the minds of readers. So it is important for Singapore to remain - and to be seen to remain - acting as a mature, sophisticated tax jurisdiction in these times.

The Singapore authorities have not been short on foresight and planning. It is thus no surprise that we are seeing several signs that the country's tax policy and administration are being upgraded, to align with the OECD's roadmap and ensure that multinational corporations and other companies operating in Singapore pay tax where the economic value is actually created.