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Client Update: Singapore 2021 JUNE Tax © Rajah & Tann Singapore LLP | 1 Implications of the G-7 Global Minimum Corporate Tax for Singapore Singapore has long been known for its attractive corporate tax rates, but this tax advantage may be whisked away once the landmark tax agreement by the Group of Seven ("G-7") comes into effect. The G-7 represents a huge proportion of global gross domestic product (GDP) and global net wealth, being comprised of the seven countries of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. On 5 June 2021, the G-7 sent ripples worldwide when it reached a deal to implement two sets of rules, namely (a) reallocating taxable profits of the largest multinational enterprises ("MNEs") to "market jurisdictions" where their customers are located, and (b) a global minimum tax rate of 15% for large MNEs. The agreement has multiple aims, ranging from modernising tax laws for the digital economy, to avoiding a "race to the bottom" with co...