Global tax changes could delay new investments in Singapore
Singapore is expected to experience a “short pause” in investments, as large multinational enterprises (MNEs) wait to understand the incentives other countries will offer in response to global tax changes. According to PwC global tax policy leader William Morris, while businesses may not leave Singapore due to these tax changes, the amount of new investment could be impacted.
The country will lose two significant tax incentives: the Pioneer Certificate Incentive, which grants tax exemptions for qualifying activities, and the Development and Expansion Incentive, offering a concessionary tax rate of 5 or 10 percent on income from qualifying activities. While these changes are not expected to drive companies out of Singapore, they may cause a temporary slowdown in investments as businesses await further clarity on global tax landscapes.
