Low-tax Singapore cites trusted reputation as key for businesses after G7 plan

Reuters2021-06-08

SINGAPORE, June 8 (Reuters) - Singapore's trusted reputation and solid fundamentals, such as its skilled workforce, are more important factors than ever, its Economic Development Board said, after a plan by the world's rich nations for a global minimum corporate tax rate.

The Group of Seven (G7) advanced economies agreed on Saturday to back a minimum global corporate tax rate of at least 15%.

Singapore, a low-tax jurisdiction, has a rate of 17% but provides incentives and schemes which reduce the effective rate.

The EDB, a government agency that helps attract investment into Singapore, cited the country's infrastructure, location, rule of law, good governance, intellectual property protection regime, as well as skilled and educated workforce among other advantages.

"These fundamentals and our reputation for being a trusted and open place to do business are more important than ever in the current environment," Jillian Lim, EDB executive vice president, said in an emailed response to Reuters late on Monday.

"We support a multilateral solution that will create a stable international system that promotes growth, tax certainty, while ensuring a level playing field across jurisdictions," she added.

Singapore is home to the regional headquarters of a number of global multinational companies including Alphabet's Google and Facebook.

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