Singapore Corporate Taxation: A Strong Determinant of the Country’s Economic Growth
Corporate income tax Singapore is considered to be one of the strongest determinants which attract a large section of foreign entrepreneurs and investors from all corners of the world. The government of the country is liberal and believes in open and flexible policies, which are crucial for country’s economic growth. Keeping this in mind, liberal government of the island country has implemented low corporate income tax rates along with a couple of tax benefits. As a result, more and more foreign investors are heading towards Singapore to take plunge into the Singapore corporate tax regimes.
Singapore economy has been growing rapidly since its independence in 1963 and as a result, the country has now one of the highest GDP per capita in the world. The economy of the nation highly depends on the foreign trade. The erstwhile sleeping nation is now a leading foreign direct investment recipient due to its status of one of the most competitive and business-friendly economies in the world. The nation is also an important financial center of the world in general and South East Asia in particular. Amongst other encouraging factors, the most important feature that determines the economic future of the nation is Singapore taxation regime. The headline Singapore corporate tax rate 2013 is capped at 17%, which is undoubtedly an appealing feature for the overseas investors.
The Singapore company tax brings innumerable benefits to the taxpayers including local residents and non-residents. However, benefits and incentives for local residents are more alluring. Increasingly, influx of foreign entrepreneurs has been increasing unprecedentedly.
The Corporate Income Tax Rates 2013 of Singapore currently stands at a flat rate of 17%. Additionally, the company tax Singapore offers a slew of incentives to its local tax residents. Full tax exemption scheme, partial tax exemption schemes, absence of capital gain tax and one-tier tax systems are some of the highlights of corporate tax Singapore.
While, the full tax exemption scheme exempts the newly incorporated or start-up companies in Singapore of paying tax on their first S$100,000 taxable income for first three consecutive years, the partial tax scheme allows 50% tax deduction on their next S$200,000 chargeable income subject to a cap of S$300,000. These two systems of taxation Singapore encourage the foreign and local companies to grow and thrive in the highly developed tiny nation.
When it comes to Singapore tax system and economic scenario of the nation, no one can afford to ignore an important facet of Singapore tax system and structure is GST Singapore. The goods and services tax rate of Singapore is also regarded as one of the lowest in the world which is capped at 7%.
The foreign entrepreneurs and investors looking for foothold in Singapore can take advice and assistance of a professional service provider. SBS Consulting is reliable name that you can count on. The leading firm offers comprehensive tax services in Singapore. Their expert professionals provide an array of services for Singapore tax planning and tax payment Singapore. The professionals can even assist them to calculate income tax rates and filing. The firm ensures that all taxation matters of their clients are performed in accordance with the jurisdictions of the IRAS (Inland Revenue Authority of Singapore).