Singapore announced the publication of the Multinational Enterprise (Minimum Tax) Act 2024 and the Multinational Enterprise (Minimum Tax) Regulations 2024 in its Official Gazette on 30 December 2024.

The Multinational Enterprise (Minimum Tax) Act 2024 implements two taxes under BEPS Pillar Two: Domestic Top-up Tax (DTT) and Multinational Enterprise Top-up Tax (MTT). These taxes ensure that in-scope multinational enterprise (MNE) groups with annual revenues exceeding EUR 750 million are subject to a minimum effective tax rate of 15% in Singapore and abroad.

In-scope MNEs must comply with strict reporting and filing obligations, with penalties for non-compliance. The first assessments and payments under these rules took effect for financial years starting on or after 1 January 2025.

Earlier, Singapore enacted two tax laws, Income Tax (Amendment) Act 2024 and Multinational Enterprise (Minimum Tax) Act 2024, with the aim to align with global tax standards, enhance business competitiveness, and introduce targeted incentives for investments and compliance with OECD’s Base Erosion and Profit Shifting (BEPS) 2.0 framework.