On 10 June 2024, The Ministry of Finance (MOF) announced a public consultation on the proposed Multinational Enterprise (Minimum Tax) Bill and associated legislative amendments to the Income Tax Act 1947 (ITA).
The consultation period will run from 10 June – 5 July, 2024.
The proposed Multinational Enterprise (Minimum Tax) Bill aims to introduce a Domestic Top-up Tax (DTT) and an Income Inclusion Rule (IIR) as part of the Base Erosion and Profit Shifting (BEPS) 2.0 initiative, which was highlighted in the 2024 Budget Statement on 16 February 2024.
If enacted, it will align with the ITA, incorporating existing provisions for administration, enforcement, and appeals, with necessary modifications. It will also clarify the tax treatment for taxes imposed by Singapore and other jurisdictions under the BEPS 2.0 framework.
Additionally, the MOF is proposing the Income Tax (Amendment) Bill 2024, which includes 22 amendments to the ITA. These amendments are divided into two categories: 15 amendments addressing tax measures from the 2024 Budget Statement, and seven arising from MOF’s periodic review to better align with policy goals and improve tax administration.
Public consultation documents, including the proposed bills and subsidiary legislation, are available on the MOF website (www.mof.gov.sg) and the Reach consultation portal (www.reach.gov.sg).
