SINGAPORE’S corporate tax system will reflect recommendations from the second pillar of the Inclusive Framework on Base Erosion and Profit Shifting (BEPS 2.0) from 2025, Finance Minister Lawrence Wong said on Tuesday (Feb 14) in his Budget speech.

Pillar 2 of BEPS 2.0 introduces a minimum effective tax rate of 15 per cent for multi-national enterprise (MNE) groups with annual group revenues of at least 750 million euros. This will be implemented in Singapore on or after Jan 1, 2025.

The change is part of a broader international move to align minimum global corporate tax rates for large MNE groups, Wong said.

“At the same time, we will review and update our broader suite of industry development schemes to ensure that Singapore remains competitive in attracting and retaining investments,” Wong said.

The government will also continue to engage companies here and give them sufficient notice ahead of any changes to Singapore’s tax rules or schemes, Wong added.