Singapore to set effective corporate tax rate at 15% from 2025

People walk along the Marina Bay Sands boardwalk in Singapore, on Saturday, Feb. 11, 2023. Singapore will report the budget for the coming fiscal year on Tuesday, will probably reinforce longer-term investment priorities including digitalization, green energy transition, and health services for an ageing society. Photographer: Edwin Koo/Bloomberg

By Low De Wei

(Bloomberg) — Singapore intends to set its effective tax rate for multinational enterprises at 15 per cent 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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