SINGAPORE- Singapore’s Finance Minister Lawrence Wong announced on Friday a “significant adjustment” to the tax system with implementation of the 15 percent global minimum corporate tax rate spearheaded by the Organization for Economic Cooperation and Development (OECD).
The prime minister-in-waiting also expanded government spending to help households battle inflationary pressures in the city-state and to grow the economy and jobs.
Wong told parliament the tax adjustment could lead to a reduction in the tax base as multinational companies re-evaluate their plans and said he did not expect the move to generate revenue gains for Singapore.
OCBC economist Selena Ling called the move “quite sobering” but said the trade-reliant economy had no choice since more countries – key trading and investment source markets – were implementing the OECD’s minimum corporate tax rate.
Wong announced an overall small surplus of S$0.8 billion or 0.1 percent of GDP for fiscal year 2024, “essentially a balanced fiscal position”, he said. – Reuters
