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

    Eugene Lai (left) says that he was sharing a view with Tan Chian Khong that the board needed a refresh and that it was not an explicit direction to resign.

    CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh

    Allowing some older malls to evolve organically could help Orchard Road retain diversity, says one observer.

    Room for more offices, homes and green spaces to make Orchard Road more vibrant

    Siranudh Scott had caused an internet sensation with a video accusing his brother of allegedly abusing him during his childhood years.

    ‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse

    The amendments "aim to protect the competitive process of takeover and merger transactions", says SIC.

    MAS revises takeover and merger code to enhance competition and disclosures

    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