Singapore to Raise Effective Corporate Tax to 15% From 2025 (1)

Singapore intends to raise its effective tax rate for multinational firms to 15% starting 2025, in line with a global agreement to increase the floor rate.

The city-state will join the broader international move, and implement a ‘Domestic Top-up Tax’ to bring the city-state’s effective corporate tax rate to that level, Finance Minister Lawrence Wong said Tuesday in his annual budget speech, referring to the so-called BEPS 2.0 agreement signed by more than 135 countries in 2021.

Singapore, which hosts world-renowned multinationals such as BMW AG, Apple Inc., Sony Group Corp. and Amazon.com Inc., currently has a ...