Singapore to Enact Global Minimum Tax, Create Investment Credit

The Singaporean government will begin implementing parts of the global minimum tax starting in 2025 in an effort to reduce profit shifting.

Finance Minister Lawrence Wong said in his 2024 budget speech Friday that Singapore will adopt the income inclusion rule, or IIR, and the domestic top-up tax, or DTT, for multinational corporations parented in the city-state.

The income inclusion rule and the domestic top-up tax are components of a deal brokered by the Organization for Economic Cooperation and Development to implement a 15% minimum tax, known as Pillar Two.

Under the IIR, multinationals will have to pay ...