New US tax law won't hurt Singapore's competitiveness: SMOS Josephine Teo

Senior Minister of State for Finance and Transport Josephine Teo (above) said the cost of compliance with international tax laws is likely to go up as a result of new legislation coming out of the United States, but this should not affect Singap
Senior Minister of State for Finance and Transport Josephine Teo (above) said the cost of compliance with international tax laws is likely to go up as a result of new legislation coming out of the United States, but this should not affect Singapore's competitiveness as a financial hub. -- FILE PHOTO: SINGAPORE INSTITUTE OF DIRECTORS

The cost of compliance with international tax laws is likely to go up as a result of new legislation coming out of the United States, but this should not affect Singapore's competitiveness as a financial hub.

Senior Minister of State for Finance and Transport Josephine Teo said countries all over the world - not just Singapore - will be grappling with the requirements of the United States' Foreign Account Tax Compliance Act (Fatca).

She was responding to MP's questions in Parliament about negotiations between Singapore and the United States over the Act.

Fatca is an inter-governmental agreement that will provide for automatic information sharing by financial institutions here with US tax authorities.

It takes effect globally in January.