Singapore today announced that it will participate in the OECD/G20 base erosion profit shifting (BEPS) plan, adopting BEPS minimum standards, including country-by country reporting. The decision means that Singapore will assist in setting standards and monitoring the implementation of the BEPS project, which is designed to combat multinational corporation tax avoidance.
“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,” said Minister for Economic and Social Policies & Minister for Finance, Tharman Shanmugaratnam.
The framework for BEPS project implementation, announced by the OECD in February and later endorsed by G20 finance ministers, allows any country to participate in further BEPS work under the framework’s mandate if the country agrees to pay an annual fee and adopt the BEPS project minimum standards on harmful tax practices (action 5), treaty abuse (action 6), country-by-country reporting (action 13), and dispute resolution (action 14).
Singapore will adopt country-by-country reporting for financial years beginning after January 1, 2017, the goverment said. Singapore’s Inland Revenue Service will provide more guidance in this area after consultation with business.
The first meeting of the new BEPS framework will take place in Kyoto, Japan, on June 30–July 1.
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