SINGAPORE will adjust its corporate tax system in due time – but it will do so, in consultation with the industry, while protecting its sovereign rights on taxes and keeping the compliance burden on businesses down, said Minister for Finance Lawrence Wong.
The minister was replying to questions posed in Parliament on Monday, on Singapore’s response to the Group of Seven’s recent agreement on a global minimum tax rate and how that would affect the nation’s competitiveness.
“Singapore has been actively involved in these international discussions as part of the Inclusive Framework or the IF,” he said.
The OECD/G20 Inclusive Framework on base erosion and profit shifting (BEPS) comprises over 130 jurisdictions, collaborating on the implementation of measures to tackle tax avoidance, improve the coherence of international tax rules and ensure a more transparent tax environment. Singapore will continue to invest in its infrastructure to allow companies to operate in a very cost-effective manner, and that it would extend the nation’s connectivity through more free trade agreements, while looking for new opportunities for other types of trade agreements, such as those involving renewable energy and the digital economy.