Large firms push for increased overseas tax relief: KPMG

The government should boost internationalisation efforts.

KPMG’s Budget Wishlist urges the government to encourage businesses to internationalise in the ASEAN and beyond, particularly by providing more effective tax relief for tax suffered earned by Singapore businesses overseas. 

KPMG’s pre-Budget poll showed that 41% of large businesses hope to see more relief for overseas taxes suffered. Overall, this figure stood at 33.5%, while only 14.5% of SMEs called for overseas tax relief.

According to KPMG, most of the businesses polled plan to expand/relocate overseas over the next 3 years, either to seek new opportunities or to cope with rising labour and operation costs at home. Many Singapore-listed companies and SMEs are calling for greater assistance in this.

“Unilateral tax relief for overseas income is not available where there is an existing tax treaty. Unilateral tax relief should apply regardless of whether there is a tax treaty,” KPMG stated.