Singapore: Announced Singapore's intent to implement Pillar 2 of the OECD's BEPS initiative

On 14 February 2023, Singapore’s Deputy Prime Minister and Minister for Finance delivered the FY2023 Budget Statement in Parliament and announced Singapore’s intent to implement the Global Anti-Base Erosion (GloBE) rules under Pillar 2 of the OECD’s Base Erosion and Profit Shifting (BEPS) initiative starting on or after 1 January 2025. This would introduce a global minimum effective tax rate of 15% for large multi-national enterprises, i.e., with an annual turnover exceeding EUR 750 million. The Budget stated that this would affect Singapore’s ability to use tax incentives for attracting new investments, although discussions on Pillar 2 were still “fluid” and remained under discussion.