In December 2024, Singapore’s tax administration issued regulations and a guidebook to help companies comply with its global minimum tax law. The regulations, published in the legislative gazette on Monday, provide instructions for calculating top-up tax amounts, determining the first year a company falls under the rules, and handling transferable tax credits. They also specify how and when to convert income into Singapore dollars or euros. On Tuesday, a simplified guide was released, explaining the scope of the law, along with carve-outs and safe harbors under Pillar Two of the OECD’s global tax framework. Starting January 1, 2025, Singapore will implement two of the three Pillar Two rules: a domestic top-up tax and a multinational enterprise top-up tax (Singapore’s version of the income inclusion rule), ensuring multinational companies face a minimum 15% tax rate.
To read more on the regulations, click here.