Effects of Global Tax Reforms in Singapore Post Covid-19

Effects of Global Tax Reforms

With the expectations of global tax reforms in the wake of the Covid-19 pandemic, there has been much speculation on how this is expected to affect Singapore. According to Singapore Economic Development Board’s Chairman Beh Swan Gin, the country is confident that this will not affect its global competitiveness. 

In June, the G-7 largest economies in the world reached a monumental agreement to back a minimum corporate tax rate, which had been endorsed by the G-20 finance ministers in July. Singapore is extremely committed towards multilateral efforts to create an even playing field for attracting investments. 

Singapore is also confident of its ability to remain competitive through these reforms, as it has its own value propositions that are attractive to global investors and companies. The country has proven itself to be a steady and effective environment for capital, technology and knowledge-incentive activities that offer protection in intellectual property, especially with restrictions on IP in many countries. 

Singapore has remained an attractive place for many global companies to invest and even set up regional headquarters here because of its strong and effective government. This is reaffirmed by the government’s ability to adeptly handle the Covid-19 pandemic in the country. 

As the country is poised for further relaxation regarding Covid-19 regulations, it sees Thermo Fisher planning to establish a US$130 million facility in Singapore; French pharmaceutical giant Sanofi confirming their EUR 400 million investment into vaccine production here; and BioNTech affirming their plans to open a regional headquarters in Singapore. 

With this, we can see Singapore’s shift into focusing on garnering investments and procuring global companies that are pioneers and ongoing developers of innovative products and services that are currently relatable as well as future-centric. This bodes well for the creation and availability of jobs in these various industries, which is forecasted to cause an interesting shift in talent acquisition from an immigration standpoint in the coming decade.

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