Mark Lee on Income Tax (Amendment) Bill and Multinational Enterprise (Minimum Tax) Bill
As Parliament debated a Bill to enforce a global 15 per cent minimum effective tax rate for large multinational enterprises (MNEs) in Singapore, NMP Mark Lee said many jurisdictions are implementing significant tax reforms in response to the global shift. Noting that these actions may erode Singapore’s traditional strengths, he asked how the Government plans to mitigate concerns about the impact on competitiveness and whether it will consider enhancing non-tax incentives in areas such as infrastructure, talent development and support for R&D to maintain Singapore’s attractiveness for foreign investment. He also had questions about steps that might be taken to smooth the implementation, operational and compliance challenges of the BEPS 2.0 regime. Mr Lee also spoke about the introduction of the Refundable Investment Credit (RIC) scheme. He proposed that credits be based not just on qualifying expenditure but also economic outcomes, so that businesses - particularly SMEs - “can invest confidently in long-term growth without being constrained by rigid criteria”. He suggested expanding the RIC to incentivise green investments, saying this will help align Singapore’s fiscal policies with its sustainability goals, positioning the country as a global leader in green innovation. Mr Lee spoke in Parliament on Tuesday (Oct 15).
As Parliament debated a Bill to enforce a global 15 per cent minimum effective tax rate for large multinational enterprises (MNEs) in Singapore, NMP Mark Lee said many jurisdictions are implementing significant tax reforms in response to the global shift. Noting that these actions may erode Singapore’s traditional strengths, he asked how the Government plans to mitigate concerns about the impact on competitiveness and whether it will consider enhancing non-tax incentives in areas such as infrastructure, talent development and support for R&D to maintain Singapore’s attractiveness for foreign investment. He also had questions about steps that might be taken to smooth the implementation, operational and compliance challenges of the BEPS 2.0 regime. Mr Lee also spoke about the introduction of the Refundable Investment Credit (RIC) scheme. He proposed that credits be based not just on qualifying expenditure but also economic outcomes, so that businesses - particularly SMEs - “can invest confidently in long-term growth without being constrained by rigid criteria”. He suggested expanding the RIC to incentivise green investments, saying this will help align Singapore’s fiscal policies with its sustainability goals, positioning the country as a global leader in green innovation. Mr Lee spoke in Parliament on Tuesday (Oct 15).
Popular Shows
