On 18 February 2022, Singapore’s Minister for Finance, Lawrence Wong, presented Budget 2022 to Parliament.
In the main, the government is exploring a minimum effective tax rate to top-up the effective tax rate of multinational groups operating in Singapore (with annual revenues of EUR 750 million or more) to 15%.
The Minister said: “Our corporate tax system will need to be updated due to global tax developments relating to the Base Erosion and Profit Shifting initiative.”
“At this stage, it is premature and difficult to determine the eventual fiscal impact of both pillars. As I mentioned just now, there will be a negative revenue impact under Pillar 1. METR might yield some additional tax revenue in the short term, but the eventual impact of Pillar 2 on our revenue will depend on how governments and companies respond.”
See Budget Statement