Singapore Parliament Approves Global Minimum Tax Legislation

Singapore’s parliament passed two bills Tuesday that would require multinationals to pay a minimum tax rate of 15%.

The bills comprise a top-up tax (MTT) and a domestic top-up tax (DTT) for large multinationals.

The MTT allows a country where a multinational entity is headquartered to “top-up” a related company’s tax when it falls below 15% in another jurisdiction. The domestic top-up tax is a version of the minimum tax to bring companies paying less than 15% up to the minimum level.

Both taxes are components of a deal brokered by the Organization for Economic Cooperation and Development and agreed ...