Singapore’s 2023 Budget proposes Pillar 2 implementation

Singapore will implement the Global Anti-Base Erosion (GloBE) Rules, that is, Income Inclusion Rule and Undertaxed Profits Rule, and Domestic Top-up Tax from January 1, 2025.

The announcement was a part of the country’s 2023 Budget, which finance minister Lawrence Wong, presented before Parliament today.

Delivering the Budget, the finance minister said that the government would implement a Domestic Top-up Tax, which will top up the MNE groups’ effective tax rate in Singapore to 15 percent. “At the same time, we will review and update our broader suite of industry development schemes to ensure that Singapore remains competitive in attracting and retaining investments,” the minister said.
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Wong told the Parliament that the government will continue to monitor international developments. “If there are additional delays, we will adjust our implementation timeline. We will continue to engage companies and give them sufficient notice, well ahead of any changes to our tax rules or schemes,” the minister said.