Pepsi, IBM sell bonds through Singapore to reap potential tax benefit

The tactic can allow companies to deduct interest expense from their taxable income in both the United States and Singapore. — Bloomberg

SINGAPORE: A potential tax benefit is spurring US companies, including PepsiCo Inc and International Business Machines Corp, to sell bonds through their Singapore subsidiaries, fuelling a record surge of sales from borrowers in the city-state.

The tactic can allow companies to deduct interest expense from their taxable income in both the United States and Singapore.