Jamus Lim on Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill

The stipulations in the Bill are “another small step forward” in preparing the economy for a post-BEPS world, said MP Jamus Lim. Speaking in Parliament on Tuesday (Nov 7), he said it is important that in doing so, Singapore does not inadvertently become a tool for multinational tax evasion. It should focus on the real intangibles it can offer as an attractive destination for domestic and foreign investments, he said. He also sought clarifications on the Bill. One relates to the Approved Royalties Incentive (ARI) scheme. He wanted to know how the new activity-based approach compares with the old agreement-based approach. He also expressed concern of a possible race in tax computation where governments no longer compete to set the lowest tax rate but grab the most lavish tax credits. He urged the Government to at least outline the revenue implications based on several possible scenarios, as well as share its plans and strategy to attract and retain foreign investments.