Singapore joins inclusive framework for global implementation of BEPS project

Singapore will join the inclusive framework for the global implementation of the Base Erosion and Profit Shifting (BEPS) project which is proposed by OECD and endorsed by G20 in February 2016, announced the Ministry of Finance (MOF) on Thursday.

The authority said Singapore supports the key principle underlying the BEPS project, namely that profits should be taxed where the real economic activities generating the profits are performed and where value is created.

"As a BEPS Associate, Singapore will work with other jurisdictions to help develop the implementation and monitoring phase of the BEPS project," said MOF.

The ministry stated that Singapore is committed to implementing the four minimum standards under the BEPS project, namely the standards on countering harmful tax practices, preventing treaty abuse, transfer pricing documentation, and enhancing dispute resolution.

In keeping with this commitment and after consulting Singapore-headquartered multinational enterprises, the city state intends to implement Country-by-Country Reporting for these multinational enterprises for financial years beginning on or after January 1, 2017, MOF added.

"Singapore is committed to working with the international community to counter artificial shifting of profits, and continues to welcome substantive economic activities. We will be actively involved with the OECD and G20 in ensuring the consistent implementation of the BEPS standards across all jurisdictions, so as to ensure a level playing field," commented Singapore's Deputy Prime Minister, Coordinating Minister for Economic and Social Policies Tharman Shanmugaratnam in the press release.

The BEPS project led by OECD provides governments with solutions to close international tax loopholes and modernize international tax rules. Endit