Singapore to participate in International Compliance Assurance Programme from 2021

Singapore to participate in International Compliance Assurance Programme

The MNE’s suitability for ICAP will be considered on a case-by-case basis. The MNE may propose for participating tax administrations it wishes to involve in its ICAP risk assessment, which will be subject to the participating tax administrations’ agreement.

Singapore to participate in International Compliance Assurance Programme from 2021

The Inland Revenue Authority of Singapore will be participating in The International Compliance Assurance Programme (ICAP) from 2021.

The ICAP is a voluntary risk assessment and assurance programme to facilitate co-operative multilateral engagements between MNEs and tax administrations. Developed by the OECD, it is designed to be an efficient, effective, and coordinated approach to provide MNEs with increased tax certainty with respect to certain of their activities and transactions.

An MNE may indicate an interest in participating in ICAP to the tax administration in the jurisdiction of its ultimate parent entity (the UPE tax administration) or may be approached by its UPE tax administration to discuss its possible participation in the programme.

The MNE’s suitability for ICAP will be considered on a case-by-case basis. The MNE may propose for participating tax administrations it wishes to involve in its ICAP risk assessment, which will be subject to the participating tax administrations’ agreement.

The key benefits of ICAP include: improved tax certainty for MNEs and tax administrations; more effective dispute resolution by preventing unnecessary disputes; better and more standardized information such as country-by-country reports for transfer pricing risk assessment; better use of resources for MNEs and tax administrations; and advances in international collaboration.