Capped at 17%, the low corporate tax rate of Singapore continues to invite budding entrepreneurs & corporate giants alike to this city-state. This makes Singapore the 'most sought after business hub' in the world, says Tax Specialist, SBS Consulting
According to Inland Revenue Authority of Singapore, Corporate tax rate (CTR) recorded an all time low of 17 percent in January 2010 and remains to be at the same level till date. Not only the low CTR, but also the fact that no capital gains tax is imposed on companies, makes Singapore all the more lucrative. It's not without reason that World Bank has rated Singapore as #1 in the world, for ease of doing business.
"It is the small and medium enterprises (SMEs) that are benefitted more because of the flat-rate one-tier territorial based corporate tax system of Singapore. Also the tax exemption threshold is low, that is for any company, three-quarters of the first S$10,000 of chargeable income and one-half of the next $290,000 (excluding dividends) will be tax exempt. This saves the SMEs a lot of revenue," said the business head of SBS Consulting.
"As compared to other Asian countries like China, Japan, India, Indonesia, Philippines, Thailand, Korea, Malaysia, Vietnam and Taiwan, only Singapore and Taiwan have a corporate tax rate of 17 percent as of 1st January 2014. Amongst all the listed Asian countries, India and Philippines has the highest CTR of 30 percent, followed by Japan at 25.5 percent, China, Indonesia and Malaysia at 25 percent, Korea and Vietnam at 22 percent and lastly Thailand at 20 percent." These figures, taken from the Ernst and Young's Budget toolkit 2014, reinstate the fact that Singapore encourages entrepreneurship.
Ernst and Young 2011 Globalization Index says that Singapore ranks as the third most globalized economy, when compared to 60 other world's largest economies. They have also predicted that these positions are not going to change till the end of 2014. "Singapore has made it to the third place because it has recognized the importance of SMEs in the growth of the economy, and for attracting the SMEs to startup; the CTR and other taxes need to be low," says SBS Consulting.
About SBS Consulting:
SBS Consulting is one of the established and renowned business services providing firms in Singapore, which offers its expertise to all types of enterprises. They provide a host of taxation services which include corporate tax ( http://www.sbsgroup.com.sg/singapore-taxation/singapore-corporate-tax-compliance-service/ ), personal tax, GST, withholding tax, property tax, double tax, filing of taxes online and on paper for non-residents as well as interns and many more. Additionally, the firm also provides services related to company incorporation, accounting, auditing, corporate secretarial, payroll and immigration visas.