Singapore’s tax incentives remain relevant even with global tax changes: EDB chairman

Pause in investments unlikely as companies often take a long-term view, says Png Cheong Boon

Tessa Oh

Published Mon, Apr 1, 2024 · 05:00 AM

SINGAPORE’S existing tax incentives will stay relevant even after global tax changes kick in, as the adjustments will not affect the majority of multinational enterprises (MNEs), said Economic Development Board (EDB) chairman Png Cheong Boon in an interview with The Business Times.

Analysts have expressed concerns that current incentives would not be valid when the second pillar of the Base Erosion and Profit Shifting (BEPS) 2.0 framework is implemented in 2025. This imposes a minimum effective tax rate of 15 per cent on large MNEs with annual group revenues of at least 750 million euros (S$1.1 billion).

But “there are not that many” MNEs of this size, noted Png. In a 2021 parliamentary reply, the Ministry of Finance said that about 1,800 such groups in Singapore meet the revenue criteria.