Quora Answer: Can a Global Minimum Corporate Tax Make Singapore More Compelling as an Investment Hub?

The following is my answer to a Quora question: “Can pushing for a global corporate tax deal make Singapore a more compelling investment hub?” 

Singapore is not in favour of the global minimum corporate tax.  The G20 have agreed on a 15% tax rate.  Singapore’s base corporate tax rate is 17%.  On the surface, it looks like Singapore’s tax rate is higher than the proposed global minimum.  However, with incentives, tax breaks, and other factors considered, corporations based in Singapore can pay even less than 10%.  The proposed G20 rate undercuts our tax advantage. 

Currently, this is a moot argument because for the EU to be on board for this, it has to be a unanimous decision.  Ireland, Estonia, and much of Eastern Europe is against this.  The Biden administration proposed something higher, but even the compromise 15% will have problems being accepted by both House and Senate, with all the Republicans and some Democrats against it.