Singapore to Set Effective Corporate Tax Rate at 15% From 2025

Singapore intends to set its effective tax rate for multinational enterprises at 15% starting 2025, in line with a global agreement to increase the floor rate.

(Bloomberg) — Singapore intends to set its effective tax rate for multinational enterprises at 15% starting 2025, in line with a global agreement to increase the floor rate.

Singapore will join the broader international move, and implement a Domestic Top-up Tax to bring the city-state’s effective corporate tax rate to that level, Finance Minister Lawrence Wong said Tuesday in his annual budget speech, referring to the so-called BEPS 2.0 agreement.

Still, he said Singapore will monitor international developments and will “adjust” its implementation timeline if there are additional delays in implementing the global agreement.

–With assistance from Aradhana Aravindan and Natalie Choy.

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