The Singapore Ministry of Finance announced on 16 June 2016 its commitment and intention to implement the BEPS Action Plan. Singapore will commence a consultation with Multinational Enterprises (MNE) on the implementation of Country By Country (CbC) Reporting and will release details on the outcome in September 2016.
Singapore will implement the four actions considered as the minimum standards under the BEPS Action Plan. These four actions are (1) Countering Harmful Tax Practices, (2) Preventing Treaty Abuse (3) Transfer Pricing Documentation and (4) Enhancing Dispute Resolution.
In the press release, Singapore Ministry of Finance stated its support to the key principle underlying the BEPS project whereby ‘profits should be taxed where the real economic activities generating the profits are performed and where the value is created.' This further emphasises Singapore’s commitment to the arm’s length and substance principle.
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