- Singapore will implement changes to its corporate tax regime starting January 1, 2025
- The changes are in line with OECD’s Pillar 2 guidelines aiming for a global minimum tax rate of 15%
- The changes include the Income Inclusion Rule, the Undertaxed Profits Rule, and the National Top-Up Tax
- Singapore will introduce a National Top-Up Tax to ensure multinational conglomerates have an effective tax rate of 15%
- Tax incentives will be updated to support investments in climate-related projects and sustainable practices
- Singapore joins countries like Uruguay and Brazil in these tax reforms
- Singapore will also digitalize its tax processes by adopting InvoiceNow based on the PEPPOL framework
- From May 1, 2025, GST-registered companies can use InvoiceNow and by November 1, 2025, it becomes mandatory for new GST-registered companies
- The digitalization aims to improve invoicing efficiency, speed up payments, and reduce paper usage
- These reforms show Singapore’s commitment to international tax regulations and adapting to global economic changes
- Companies in Singapore need to prepare for these changes to ensure smooth transition and maintain competitiveness
Source: auxadi.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
