Singapore supports multilateral solution to create stable international tax system, says EDB following G-7 deal

Singapore's EDB said it supports the G-7 agreement to create a stable international tax system.
Singapore's EDB said it supports the G-7 agreement to create a stable international tax system. PHOTO: ST FILE

SINGAPORE - The Singapore Economic Development Board (EDB) said it supports a multilateral solution that will create a stable international tax system and level the playing field across jurisdictions, following a landmark deal by the Group of Seven (G-7) to back a minimum corporate tax of at least 15 per cent.

Singapore has several advantages that enable it to continue to drive growth and innovation, said EDB executive vice-president Jillian Lim on Monday night (June 7).

These are its "strategic location and connectivity, excellent physical and digital infrastructure, rule of law and good governance, robust intellectual property protection regime, as well as skilled and educated workforce", she said.

"These fundamentals and our reputation for being a trusted and open place to do business are more important than ever in the current environment," said Ms Lim, adding that EDB will continue to work with companies and industry stakeholders to strengthen the economy, as well as create good business and job opportunities.

The watershed agreement by the G-7 nations last Saturday - which aims to discourage multinational corporations from shifting profits and tax revenues to low-tax countries regardless of where their sales are made - may form the basis of a worldwide tax deal.

The move may hit large overseas profits of global companies, especially big technology firms like Google, Amazon, Facebook, Apple and Microsoft that have significant operations based out of Singapore.

No changes will come into effect immediately or in the next few weeks. A final deal, agreed by countries worldwide, may take months or even years to negotiate.