Global tax deals can make attracting investments harder for Singapore

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According to Finance Minister Lawrence Wong, there is “no question” that a major agreement by the world’s wealthiest nations to support a worldwide minimum corporation tax rate of at least 15% will make it more difficult for Singapore to attract investments.
However, because implementation specifics are still being worked out, it is too early to determine the actual impact. “Wherever they travel, the world’s major MNCs (multinational businesses) will face a higher tax burden. As a result, whether it’s improving our personnel, infrastructure, connection, or entire business climate, (Singapore) will have to work much harder.
“All of those factors can thus become more salient in our ability to draw in and retain investments, and ultimately with the target of doing sensible jobs for Singaporeans,” he same in Parliament on Monday (July five), adding that several locations around the world provide equally if less enticing and compelling attributes as Singapore.
He was responding to MPs’ queries on however Singapore is tormented by the cluster of Seven’ (G-7) agreement on June 5 to back the creation of a world minimum company charge per unit of a minimum of fifteen percent.
It remains to be seen if the world’s top will support the ideas developed and developing countries at the Group of 20 (G-20) conference in Venice later this week, as well as the more than 130 countries in the OECD/G-20 Inclusive Framework (IF) on Base Erosion and Profit Shifting (BEPS).
The IF works with other organizations to put in place measures to combat tax evasion, strengthen the consistency of international tax regulations, and create a more transparent tax environment.

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