Indranee Rajah on Income Tax (Amendment) Bill and Multinational Enterprise (Minimum Tax) Bill
The Income Tax (Amendment) Bill and Multinational Enterprise (Minimum Tax) Bill will sustain Singapore’s economic competitiveness and provide better support to businesses and individuals, said Second Minister for Finance Indranee Rajah. They will also ensure that Singapore keeps in step with international tax developments, she said in Parliament on Monday (Oct 14). Ms Indranee said the provisions to implement the changes to the tax regime, which were announced earlier in Budget 2024, intend to anchor and encourage high-quality investments in Singapore to grow its economy and create good jobs for Singaporeans. They also aim to ensure that Singapore’s tax system remains relevant and fair to businesses, she added. One key proposal is the Refundable Investment Credit (RIC) under the Income Tax Amendment Bill. Ms Indranee said the RIC will be a useful tool to attract and support businesses that undertake substantive and high-value economic activities in Singapore. It will allow Singapore to anchor and encourage high-quality investments, create good jobs for Singaporeans and support its green transition, she added. Ms Indranee said the RIC support will be commensurate with the size and quality of the businesses’ economic contributions to Singapore, based on assessments of how much the projects will bring in terms of new fixed asset investment, productive capacity and skilled jobs created for locals. Moving on to the Multinational Enterprise (Minimum Tax) Bill, Ms Indranee highlighted the new top-up taxes, which were also announced in Budget 2024. Both the domestic minimum top-up tax (DTT) and multinational enterprise top-up tax (MTT) will enable Singapore to collect the tax rather than cede it to other jurisdictions. The Government plans to re-invest the additional revenues to enhance Singapore’s overall business environment, such as upskilling the workforce, growing a vibrant innovation ecosystem and providing quality infrastructure and connectivity.
The Income Tax (Amendment) Bill and Multinational Enterprise (Minimum Tax) Bill will sustain Singapore’s economic competitiveness and provide better support to businesses and individuals, said Second Minister for Finance Indranee Rajah. They will also ensure that Singapore keeps in step with international tax developments, she said in Parliament on Monday (Oct 14). Ms Indranee said the provisions to implement the changes to the tax regime, which were announced earlier in Budget 2024, intend to anchor and encourage high-quality investments in Singapore to grow its economy and create good jobs for Singaporeans. They also aim to ensure that Singapore’s tax system remains relevant and fair to businesses, she added. One key proposal is the Refundable Investment Credit (RIC) under the Income Tax Amendment Bill. Ms Indranee said the RIC will be a useful tool to attract and support businesses that undertake substantive and high-value economic activities in Singapore. It will allow Singapore to anchor and encourage high-quality investments, create good jobs for Singaporeans and support its green transition, she added. Ms Indranee said the RIC support will be commensurate with the size and quality of the businesses’ economic contributions to Singapore, based on assessments of how much the projects will bring in terms of new fixed asset investment, productive capacity and skilled jobs created for locals. Moving on to the Multinational Enterprise (Minimum Tax) Bill, Ms Indranee highlighted the new top-up taxes, which were also announced in Budget 2024. Both the domestic minimum top-up tax (DTT) and multinational enterprise top-up tax (MTT) will enable Singapore to collect the tax rather than cede it to other jurisdictions. The Government plans to re-invest the additional revenues to enhance Singapore’s overall business environment, such as upskilling the workforce, growing a vibrant innovation ecosystem and providing quality infrastructure and connectivity.
Popular Shows
