Singapore EDB Supports Multilateral Solution
Singapore will support a multilateral solution to create a stable international tax system in the country. This support will be given by the Singapore Economic Development Board (EDB).
The aim to create an international tax system that is stable and helps to level the playing field across jurisdictions. The EDB put forth its support after a landmark deal was cemented by the Group of Seven (G-7). In this deal, a minimum corporate tax of 15% was agreed upon.
Singapore’s Several Advantages
Singapore can help foster this stable international tax system because it has several advantages. These advantages allow Singapore to continue driving innovation and growth.
Among the advantages include its strategic location and excellent connectivity because of the physical and digital infrastructure in place. The robust intellectual property protection offered by Singapore is another one of those advantages. Other advantages include the rule of law and the rule of good governance. The local skilled and educated workforce is another strength that Singapore has on its side.
The EDB also plans to continue its work alongside companies and industry stakeholders. The aim of this collaboration is to help strengthen the economy and create better business and job opportunities.
The G-7 Watershed Agreement
The G-7 agreed that one of the aims in place is to discourage shifting profits among multinational corporations. The G-7 also aims to discourage tax revenues to low-tax countries. This is regardless of where the sales take place. This watershed agreement could form the basis of a new worldwide tax deal.
Large corporations like Microsoft, Facebook, Google, Apple, and Amazon could be impacted because they have base operations out of Singapore. However, no change is expected to come into effect immediately or within the next few weeks. The final agreement by countries across the world could take years to negotiate.