Singapore's 15% minimum tax for large groups is in force
The Multinational Enterprise (Minimum Tax) Act 2024 applies to financial years starting on or after 1 January 2025.
- Where
- ASEAN ↔ Japan · China ↔ ASEAN · India ↔ ASEAN · Singapore
- Published
- Last reviewed
- Prepared
- Prepared by the Intelligence desk with AI-assisted research from the cited sources, checked on 12 November 2026.
- Effective
- 1 January 2025
- Version
- 1
What changed
Singapore's Multinational Enterprise (Minimum Tax) Act 2024 came into force on 1 January 2025. It introduces two taxes for groups with consolidated revenue of EUR 750 million or more. The Domestic Top-up Tax applies to low-taxed profits of group entities in Singapore. The Multinational Enterprise Top-up Tax applies the Income Inclusion Rule to low-taxed profits of group entities abroad. In-scope groups register once with IRAS, within six months after the end of their first financial year under the Act.
Who is affected
Multinational groups at or above the EUR 750 million threshold with Singapore entities, especially those using incentives that bring the effective rate below 15%, and Singapore-parented groups with low-taxed subsidiaries abroad.
Why it matters
For large groups, the effective rate in Singapore is now set at 15% or more, whatever the 17% headline rate or incentives say. This changes how Singapore compares with Hong Kong and other holding locations for these groups. It does not change the position of smaller groups.
What to examine next
Confirm whether the group meets the EUR 750 million test in two of the four preceding years.
Compute the jurisdictional effective rate for Singapore entities, including incentive income.
Diary the IRAS registration deadline for the first in-scope financial year.
Compare the holding options in the Singapore vs Hong Kong Decision Map.
Sources
- Multinational Enterprise (Minimum Tax) Act 2024Singapore Statutes Online (AGC) · published 8 Nov 2024 · checked 12 Nov 2026 · primary source
- Registration for Multinational Enterprise Top-up Tax and Domestic Top-up TaxIRAS · checked 12 Nov 2026 · primary source
Next steps, if you need them
Original analysis by the UNBOUNDED Intelligence desk. Linked sources belong to their publishers. This briefing is information, not legal, tax, investment or other professional advice. Its appearance here is not an endorsement by UNBOUNDED or any institution of a transaction, jurisdiction, strategy or counterparty.