US firms like PepsiCo and IBM use Singapore subsidiaries to sell bonds for lower tax rates, contributing to $51.5bn record bond sales in 2021.

US firms like PepsiCo and IBM are selling bonds through their Singapore subsidiaries to potentially benefit from lower tax rates, contributing to record bond sales from Singapore borrowers, reaching $51.5bn in 2021. This strategy, enabled by Singapore's tax law and US tax code, could be impacted by a future OECD rule, but companies can still take advantage of it for at least the next three years.

February 27, 2024
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