Tax Bulletin

Tax Bulletin
July 2014

Changing tides in the international tax framework – How will this affect you in Singapore?

Since the Organisation for Economic Cooperation and Development (OECD) launched the hefty Base Erosion and Profit Shifting (BEPS) project in February 2013, the individual action plans have moved swiftly ahead. In 2014 alone, the OECD has issued four Discussion Drafts targeting (i) Transparency and Exchange of Information; (ii) Tax arbitrage and hybrid mismatches; (iii) Treaty shopping; and (iv) Imbalance of residence – source taxing rights. Whilst the OECD moves ahead with its review, many countries are contemplating how to interpret and implement these rules. Amidst all this uncertainty, consideration needs to be given on how some of these action points may affect corporations in Singapore so groups may take anticipatory actions to mitigate any tax risks as the BEPS initiatives move ahead.