Singapore approves new investment incentives ahead of global minimum tax

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Bill introduces an additional concessionary tax rate

Speaking in Parliament on Nov 11, Minister of State for Trade and Industry Alvin Tan said Singapore will keep updating its toolkit of incentives to attract investments andWorld class infrastructure, a quality workforce, a well-connected financial system and political stability holds Singapore in good stead with global investors, but the Republic cannot take for granted that multinational corporations will continue to invest here, MOS Tan said.

Among other things, the Economic Expansion Incentives tier of 15 per cent for the Development and Expansion Incentive scheme.The DEI Act, which was introduced in 1967 and has since gone through many amendments, is meant to encourage companies to grow their capabilities and conduct new or expanded activities in Singapore.

The BEPS rules, prepared by the Organisation for Economic Co-operation and Development, aim to ensure that MNCs pay a fair share of tax wherever they operate.Singapore will implement the Pillar Two rules in the fiscal year starting on or after Jan 1, 2025. Finally, the bill expands the scope of companies eligible for the award tenure of up to 40 years and extends this sub-scheme until the end of 2028, giving the Government more flexibility to respond to the fast-changing economic landscape.

“Our economic philosophy has always been to support all companies that can bring value to Singapore and to have the incentivised companies commit to generating economic contributions to Singapore that is commensurate with the incentive or benefit that they enjoy.”

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