Multinational enterprises (MNEs) with revenues exceeding US$1.1b (€750m) are confronted with challenges due to the implementation of the Base Erosion and Profit Shifting (BEPS) 2.0 framework, particularly the introduction of a 15% global minimum tax rate. This rate is aimed at preventing tax base erosion and profit shifting by ensuring MNEs pay a minimum amount of tax on their earnings, regardless of where they choose to locate their profits.
In anticipation of further global tax reforms, Singapore plans to adopt the BEPS 2.0, or the second phase of rules for business financial years starting on or after 1 January 2025, according to the Ministry of Finance. This next phase is anticipated to influence at least 1,800 MNEs operating in the country.
To navigate the challenges of the new tax directive and mitigate its impact, KPMG experts Harvey Koenig and Yong Jiahao propose three strategies.
QRTC Scheme
One way for Singapore to offset the effects of the tax directive is to introduce a Qualified Refundable Tax Credits (QRTC) scheme.
This story is from the Issue 107 edition of Singapore Business Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the Issue 107 edition of Singapore Business Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
All you need is one 'hero' TikTok product
Brands can boost their gross merchandise value with just one best-selling SKU.
Retailers urged to adopt 2D barcodes
The machine-readable symbol gives consumers detailed product info at the point of sale
SingPost brings service closer to commuters
It plans to expand its service touch points.
Xiaohongshu, Taobao could help Singapore brands reach more Chinese clients
Retailers less familiar with the China market could start with Tmall and JD Worldwide.
Decathlon plans to be within 15 minutes of homes
The world's largest sporting goods retailer lets clients pick up online orders on the go.
Chinese fine dining finds its next course in Singapore
The city-state's high spending power and big Chinese commune make it an ideal entry point in the Southeast Asian market.
Hawker centres struggle to dish up meals even with foreign workers
A Singapore plan to allow certain foreigners to work as food assistants in the hawker trade may not translate into a large increase in applicants, given the back-breaking requirements of the job, according to policy experts.
10 best ways to invest in 2025
Analysts are not too worried about the impact of US tariffs.
OCBC triples quantum tech workforce to enhance cybersecurity measures
The Singapore bank expects significant tech advancements in the next five to 10 years.
K-pop craze may spur demand for Income Insurance's hourly travel cover
The Singaporean insurer is targeting spontaneous travellers who love concerts.