Implications and key benefits of the International Compliance Assurance Programme (ICAP) for multinational enterprises (MNEs).
The Inland Revenue Authority of Singapore (IRAS) has announced that it is participating in ICAP from 2021. Developed by the Organisation for Economic Co-operation and Development as a voluntary programme, ICAP facilitates collaboration and co-operation between tax administrations, and between tax administrations and multinational enterprises (MNEs).
As a multilateral co-operative risk assessment and assurance process, ICAP is designed to be an efficient, effective and coordinated approach to provide MNEs with increased tax certainty with respect to some of their activities and transactions.
ICAP covers a broad spectrum of international and cross-border tax risks and includes transfer pricing risk, permanent establishment risk, and other categories of international tax risk (e.g., hybrid mismatch arrangements, withholding taxes, or treaty benefits) as agreed by the MNE group, the lead tax administration, and other covered tax administrations.
