The Business Times
business-time-50
SINGAPORE BUDGET 2023

Changes to Singapore’s FDI tax strategy may come only after Budget 2023 

google-preferred-sourceAdd BT as a preferred source
Elysia Tan

Elysia Tan

Published Thu, Jan 26, 2023 · 05:50 AM
    • Initiatives to attract foreign investment may only come after Budget 2023, as Singapore watches how other jurisdictions adjust to new global tax rules.
    • Initiatives to attract foreign investment may only come after Budget 2023, as Singapore watches how other jurisdictions adjust to new global tax rules. PHOTO: BT FILE

    GLOBAL tax changes could prompt Singapore to find new ways to attract foreign direct investment (FDI), such as tax credit schemes, grants, or industry-specific measures – but this may only happen after Budget 2023, said industry watchers.

    The catalyst is the proposed Global Anti-Base Erosion rules in Pillar Two of the Base Erosion and Profit Shifting (BEPS 2.0) initiative, led by the Organisation for Economic Co-operation and Development.

    The rules introduce a global minimum effective tax rate of 15 per cent for multinational enterprise groups with annual global revenues of at least 750 million euros. This may require countries such as Singapore to introduce top-up taxes, limiting the effectiveness of traditional tax incentives.

    Singapore Budget 2023Singapore economyForeign investmentTaxesInternational tax reformGlobal minimum tax

    TRENDING NOW

    This comes after a Citi note that lifted target prices for all Singapore banks, with a leading preference and “buy” call for DBS.

    DBS, OCBC and UOB shares hit all-time highs as sentiment improves

    Recent cuts at e-commerce platforms such as Shopee is signalling shifting business priorities.

    E-commerce job cuts signal S-E Asia’s shift from scaling to deeper user engagement

    The eligible projects include Sun Group’s developments linked to the Asia-Pacific Economic Cooperation summit in Phu Quoc in 2027.

    Targeted credit relief: Vietnam steers funding to Vingroup, Sun Group, Masterise megaprojects

    Koh Boon Hwee says humans have accepted that robots can take over the most repetitive, manual tasks, but are nervous about AI, which can also think.

    With AI, it’s not about coding better; workers need to think better: Koh Boon Hwee

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More