A Pillar Two Review of Singapore’s Tax System

  1. Corporate tax rates
  2. Territorial basis
  3. Main permanent differences
  4. R&D
  5. Key tax incentives
  6. Timing differences
  7. Withholding taxes

In the 2023 Budget Speech, the Singapore government announced it is to implement Pillar Two GloBE rules from 2025. In this article, we look at Singapore’s tax system and assess some of the key issues that may be a driver of a low GloBE effective tax rate (ETR) for MNEs operating in Singapore, including balancing factors that may be used to temper the ETR reduction. 

Corporate Tax Rates

The standard corporate income tax rate for a Singaporean company is 17% under Section 43 of the Income Tax Act.

However, lower rates are provided in specific provisions of the Income Tax Act. For example:

Sign into your account to access this analysis