Seizing the Lion’s Share: A Snapshot of Recent Tax Shifts Impacting Investment Funds in Singapore

The lifting of Singapore’s foreign exchange control restrictions in 1978 snowballed the Lion City into the established financial centre it is today, anchored by its credibility as a place with integrity, certainty and financial expertise. Instrumental to Singapore’s rise as a viable rival to Hong Kong and New York was its strategic tax policies, one of the earliest and most impactful being the abolishment of withholding tax on interest income earned by non-resident depositors in 2005. The post-Base Erosion and Profit Shifting (BEPS) 2.0 era sees a global shift in the way tax is viewed – no longer as a competitive advantage but a leveller to ensure fair play. It is against this backdrop that Singapore has been designing its recent tax policies to stay within the lines but ahead of the curve.