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Singapore signs multilateral convention to implement tax treaty

Singapore signs multilateral convention to implement tax treaty

SINGAPORE: Singapore has signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. The Multilateral Instrument was signed in Paris by Sim Ann, Senior Minister of State, Ministry of Culture, Community and Youth, and Trade and Industry. It was the first signing ceremony for the Multilateral Instrument, with over 60 jurisdictions signing the Multilateral Instrument.

Singapore continues to build on its commitment to the principle behind the Base Erosion and Profit Shifting (BEPS) project, which is that profits should be attributable to the jurisdiction where the substantial economic activities giving rise to the profits are conducted. Singapore is among the earliest non-OECD, non-G20 jurisdictions to have joined the Inclusive Framework on BEPS in June 2016. The Multilateral Instrument represents another key component of our efforts.

Singapore had participated actively in the Ad Hoc Group formed under the aegis of the OECD and G20 to develop the Multilateral Instrument. The negotiation of the Multilateral Instrument was concluded on 24 November 2016 in Paris. “Singapore strongly supports the principle that profits should be attributable to the jurisdiction where substantive economic activities generating the profits are based,” says Minister for Finance, Heng Swee Keat. “Signing the Multilateral Instrument allows Singapore to swiftly update its wide network of Avoidance of Double Taxation Agreements to internationally agreed standards. Singapore’s signing of the Multilateral Instrument reaffirms Singapore’s commitment and support to the BEPS Project.”