It makes sense for companies from jurisdictions which offer less predictable and inconsistent tax regimes to come to Singapore, where they can enjoy a wide array of benefits.
Singapore (PRWEB) April 21, 2014
Extensive benefits await businesses that opt for company incorporation in Singapore, says Asiabiz Services.
“Companies that are looking to establish a presence in Asia often weigh the options between Singapore and Hong Kong. Both economies are formidable. However, Singapore offers a consistently stable and attractive environment which makes doing business less cumbersome,” said Mr. James Nuben, Head of Taxation at Asiabiz Services.
The 2014 Asia Pacific Tax Complexity Survey by Deloitte, released earlier this month, highlighted that tax consistency drives investment growth in Asia Pacific. More importantly, Singapore’s tax policy is one of the most consistent, most predictable and least complex in Asia Pacific.
“It makes sense for companies from jurisdictions which offer less predictable and inconsistent tax regimes to come to Singapore, where they can enjoy a wide array of benefits,” added Mr. Nuben.
The benefits that Singapore offers to businesses are as follows:
FEW RESTRICTIONS ON FLOW OF INCOME OR FUNDS
Funds may flow freely into and from Singapore because the city-state does not impose much restrictions on capital movements on foreign exchange deals. In addition, capital gains derived from the sale of property or fixed assets as well as long-term share investments are also not taxable in Singapore.
Singapore also grants locally-incorporated (tax resident) companies a tax exemption on “specific foreign sourced income” remitted to Singapore if they were subject to tax in the overseas jurisdiction where the headline corporate tax rate is at least 15%. This exemption is available regardless of whether Singapore has double tax avoidance treaties with them.
Businesses that incorporate in Singapore will be operating in a jurisdiction dubbed as the world’s easiest place to do business for 7 years in a row. The World Economic Forum has also ranked Singapore’s education and training as well as infrastructure and financial market development, as one of the best in the world.
The city-state also boasts the world's third largest forex trading centre, Singapore Exchange (SGX) and the fourth largest wealth management hub in the world.
To support the economy, Singapore offers over 700 financial institutions including 124 commercial banks, 119 foreign banks and 289 fund managers. Businesses can borrow from these institutions at rates as low as 1% per annum.
Other than financial institutions, Singapore provides companies access to public-sector funding through various programs administered by SPRING Singapore.
STRATEGIC LOCATION AND EXCELLENT CONNECTIVITY
Singapore attracts the world’s biggest brands in part, due to its strategic geographical location. Within a 6 hour-radius, entrepreneurs can reach up to 3.19 billion consumers in Asia.
According to the Singapore Economic Development Board, it is one of the world’s sea cargo hubs, offering 200 shipping lines that are linked to 600 ports in 123 countries. In addition, its airport is a major hub in Asia and serves over 100 international airlines with connections to more than 250 cities in 60 countries.
ATTRACTIVE EFFECTIVE CORPORATE AND PERSONAL TAX RATES
Singapore offers one of the most attractive corporate tax frameworks in the world. In combination with other corporate tax reliefs, rebates, and startup tax exemptions, the effective corporate tax rate of a company based in Singapore is reduced 0% - 17%.
To complement the corporate tax structure, Singapore’s marginal personal tax rates range from 0-20%. Residents can lower their tax burden by tapping various reliefs. Qualifying individuals working in Singapore instead benefit from the Not Ordinarily Resident (NOR) scheme, which grants a favourable five-year tax treatment.
WIDE NETWORK OF TRADE PACTS
To encourage businesses to go global, the Singapore government has 20 free trade agreements (FTAs) in force and 7 more that are undergoing negotiations. This is in addition to 74 comprehensive avoidance of double tax agreements (DTAs). Altogether, these agreements facilitate business dealings and reduce barriers to trade across borders.
FURTHER TAX SAVINGS VIA THE PIC SCHEME
To help companies grow, Singapore introduced the Productivity and Innovation Credit Scheme makes it possible for a company to enjoy substantial tax savings or cash payouts for making efforts to improve productivity via 6 areas. In some circumstances, the tax payable amounts to zero because the scheme offers a 400% corporate tax deduction. This then allows businesses to have their cake and eat it too.
“These factors show that Singapore offers a conducive environment to do business. It makes perfect sense for companies to establish a presence in Singapore,” affirmed Mr. Nuben.
Begin your Singapore incorporation journey at http://www.asiabiz.sg/services/incorporation.
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ABOUT ASIABIZ SERVICES
Asiabiz Services is a Singapore-based consultancy that offers business solutions for both local and foreign professionals, investors and entrepreneurs. Our areas of expertise include company incorporation, offshore company setup, accounting, taxation and other related corporate services. Asiabiz Services also provides work visa and immigration services professionals wishing to relocate to Singapore.
120 Telok Ayer Street, Singapore 068589
Phone: +65 6303 4614