The Parliament passed the Multinational Enterprise (Minimum Tax) Bill and the Income Tax (Amendment) Bill on 15 October 2024 to implement the Multinational Enterprise Top-Up Tax (MTT) and the Domestic Top-Up Tax (DTT) to ensure that the minimum effective tax rate is 15%. The amendments are set to apply to multinational enterprise (MNE) groups in Singapore from 1 January 2025.
This development is in line with the Global Anti-Base Erosion Model Rules (Pillar Two) (the GloBE Rules) of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), which require MNE groups be subject to a minimum effective tax rate of 15%.
Source: IBFD Tax Research Platform News