EDB chairman reassures businesses that tax incentives will stay impactful under the new global tax framework
Singapore’s Economic Development Board (EDB) chairman Png Cheong Boon stated that the country’s existing tax incentives will continue to be relevant even with the upcoming global tax changes. These changes are expected as part of the Base Erosion and Profit Shifting (BEPS) 2.0 framework, which will implement a minimum effective tax rate of 15% on large multinational enterprises (MNEs) starting in 2025.
While concerns have been raised regarding the validity of current tax incentives post-BEPS implementation, Png reassured that most multinational companies (MNEs) would not be significantly affected. He pointed out that there are relatively few MNEs meeting the criteria of generating annual revenues of at least 750 million euros (S$1.1 billion). According to a 2021 report by the Ministry of Finance, about 1,800 such MNEs are based in Singapore.
Png also emphasized that tax incentives are rarely the sole factor influencing investment decisions. Instead, companies often take a long-term view when making investment choices, considering various other factors beyond just tax benefits.
