Singapore may see ‘short pause’ in investments as businesses await refundable credit details: PwC tax leader

SINGAPORE is likely to see a “short pause” in investments in the near term, as large multinational enterprises (MNEs) wait to see what incentives other countries will offer in light of global tax changes, said PwC global tax policy leader William Morris in a recent interview with The Business Times.

This is especially because Singapore will lose two major tax incentives following these tax changes: the Pioneer Certificate Incentive, which provides a tax exemption for qualifying activities; and the Development and Expansion Incentive, which provides a concessionary tax rate of either 5 or 10 per cent on income derived from qualifying activities.

“I don’t think businesses are going to leave as a result of that,” said Morris. “But it does mean that the amount of investment that takes place in the next year might be affected.”