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Singapore Implements Minimum 15% Corporate Tax Rate to Align with Global Standards
Published Time：
2025-11-12 17:09
Source：
Singapore, November 2025 — To prevent tax base erosion and ensure alignment with international tax standards, Singapore has officially implemented a minimum 15% corporate tax rate for large multinational enterprises (MNEs) with financial years commencing on or after 1 January 2025. This measure complies with the Organisation for Economic Co-operation and Development (OECD) “Pillar Two” requirements under the second-generation Base Erosion and Profit Shifting (BEPS 2.0) framework.
Under the newly enacted Finance (Income Taxes) Bill, the government has established two mechanisms—the Domestic Top-up Tax and the Multinational Enterprise Top-up Tax—to ensure that large MNEs maintain an effective tax rate of no less than 15% in Singapore. During the second reading of the Bill in Parliament, Senior Minister of State for Finance and Transport, Desmond Tan, noted that this measure helps prevent profit shifting to jurisdictions with lower minimum tax rates, while enabling multinationals to better plan long-term investments and financial strategies.
Tan emphasized that in order for Singapore to remain a preferred location for business expansion and investment, its tax system must evolve in step with global developments. He further highlighted that Singapore’s competitive edge extends beyond tax policies to include its robust legal framework, talent pool, infrastructure, and sustained investments in technological innovation and long-term development.
During parliamentary debates, some Members of Parliament raised concerns that a minimum 15% tax rate could affect Singapore’s investment attractiveness. In response, the government affirmed that Singapore’s appeal lies in a combination of factors, including a stable business environment, sound regulatory framework, efficient transport and communications infrastructure, and high-quality administrative services. Singapore will continue to strengthen its industrial ecosystem and promote high-tech manufacturing and innovation-driven growth to maintain its strategic position in the global investment landscape.
The Bill also incorporates several tax reform measures announced in the 2025 Budget. These include incentives for companies listed on the Singapore Exchange (SGX): newly listed companies may receive a 20% corporate tax rebate, while companies issuing additional shares upon re-listing are eligible for a 10% rebate. Additionally, fund managers listed in Singapore for the first time may enjoy a 5% preferential tax rate on qualifying income, further enhancing the competitiveness of Singapore’s capital markets.
The implementation of the minimum 15% corporate tax rate ensures transparency and fairness in Singapore’s tax system, while providing stability for businesses amid evolving global tax rules. As the OECD’s global minimum tax framework is gradually adopted by major economies, Singapore continues to demonstrate its ability to balance fiscal prudence with economic competitiveness on the basis of openness, stability, and rule of law.
In this context of global tax reform, businesses require forward-looking strategies and compliance planning to navigate the new regulatory landscape. Headquartered in Singapore, FOZL Group has long provided one-stop corporate services for multinational enterprises and regional headquarters, covering tax advisory, auditing, company incorporation, human resources and work pass applications, family office setup, trademark registration, and corporate structuring consultancy.
FOZL Group is committed to assisting businesses in understanding and adapting to global tax developments, including the minimum 15% corporate tax rate, helping clients optimize their structures while remaining compliant and leveraging Singapore’s advantages as a regional hub for investment and expansion.
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