On 14 February 2023, Singapore announced in its Budget 2023 intending to implement Global Anti-Base Erosion (GloBE) rules under BEPS Pillar 2 and Domestic Top-up Tax (DTT) for large Multinational Enterprise (MNE) groups from businesses’ financial year starting on or after 1 Jan 2025.
Pillar 2 (GloBE rules) introduces a minimum effective tax rate (ETR) of 15% for affected MNE groups via the Global Anti-Base Erosion (GloBE) Model Rules. If an affected MNE has an ETR of less than 15% in Singapore at the group level, other jurisdictions can collect the difference of up to 15%.
The Government will continue to monitor the international developments and adjust the implementation timeline as needed if there are delays internationally. The Government will also continue to engage businesses and provide them with sufficient notice ahead of any rules becoming effective.
