Singapore provides steerage on ICAP participation

Singapore provides steerage on ICAP participation

Singapore provides steerage on ICAP participation

by Mary Swire,, Hong Kong

March 21, 2022

The Inland Income Authority of Singapore (IRAS) has issued steerage for taxpayers on accessing the Worldwide Compliance Assurance Programme, a voluntary danger evaluation and assurance scheme.

IRAS participated in ICAP from 2021. Developed by the OECD, ICAP is designed to facilitate collaborative multilateral engagements between multinational firms (MNEs) and tax administrations to allow the events to agree on the worldwide tax therapy that ought to apply to taxpayer issues.

IRAS has said {that a} multinational firm’s eligibility for ICAP shall be assessed on a case-by-case foundation. A multinational firm could categorical an curiosity in collaborating in ICAP to the tax administration in its final dad or mum firm (UPE) jurisdiction. Alternatively, it may be contacted by the tax administration within the jurisdiction of its UPE to debate potential participation.

The Tax Authority has up to date its steerage, together with its FAQs, to elucidate find out how to take part within the ICAP. The up to date steerage describes an possibility for an MNE group to point its preferences as to which tax administrations ought to take part in its ICAP danger evaluation. IRAS mentioned: “These preferences are taken into consideration by tax administrations when contemplating whether or not to take part within the MNE’s ICAP danger evaluation, however aren’t decisive.”

The rules proceed: “The deadlines for submitting an utility to take part in ICAP will be discovered on the OECD web site. MNE teams wishing to debate potential participation in ICAP ought to contact the UPE Tax Administration earlier than the deadline.”

The following utility deadlines for participation in ICAP are March 31, 2022 and September 30, 2022.

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