• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 2/21/2014

Asia Pacific - ASEAN single market in 2015; tax incentives 

February 21: Beginning 2015, the 10 member countries of ASEAN will form a common market—the ASEAN Economic Community (AEC)—based on the free flow of goods, services, investment, and skilled labour and the freer flow of capital.

Since the signing of the AEC “blueprint” agreement, ASEAN member countries have been competing against one another for foreign direct investments by reducing corporate tax rates. For instance, Singapore has the lowest corporate tax rate—at 17%—among the ASEAN member states. Tax incentives, such as exemptions from or reductions in corporate tax, remain relevant because such incentives will attract investments in certain encouraged industry sectors.

Read a February 2014 report [PDF 142 KB] prepared by the KPMG member firm in Singapore: Getting ready for the ASEAN single market

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