Nod for new investment incentives ahead of global minimum tax rule

Singapore has passed a Bill to implement several tax incentive enhancements ahead of a global minimum tax of 15 per cent, which will be imposed on companies that want to invest here from 2025.

- Ovais Subhani

Speaking in Parliament on Nov 11, Minister of State for Trade and Industry Alvin Tan said Singapore will keep updating its toolkit of incentives to attract investments and also create good jobs for its citizens.

World-class infrastructure, a quality workforce, a well-connected financial system and political stability hold Singapore in good stead with global investors, but the Republic cannot take for granted that multinational corporations (MNCs) will continue to invest here, he said.

While geopolitical and trade tensions have led to increased investment flows into Singapore, they have also fractured the rules-based global trading system, making future inflows uncertain.

"We must continuously be agile-minded and agile-footed, amend and change, be flexible with our suite of tools that are available to us to attract these investments," Mr Tan said in a round-up speech after moving the Bill to implement several tax incentive enhancements that were announced in Budget 2024.

Among other things, the Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill introduces an additional concessionary tax rate tier of 15 per cent for the Development and Expansion Incentive (DEI) scheme.

The Bill was passed in a unanimous vote.