Study Finds Singapore To Be The Most Tax-Friendly Jurisdiction For Entrepreneurs Among Six Major Countries

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A comparison of the taxes burden faced by start-ups in six economies reveals significant variation with Singapore coming out as the most tax-friendly jurisdiction. released a report this week that compares the tax policies of six countries: UK, USA, India, Australia, Russia, and Singapore. Using the tax rates for the year 2009, the report performs a comparative analysis of the tax impact on a new firm incorporated in each of these countries.

Among the six countries considered, the report finds that the tax burden imposed on new firms is the smallest in Singapore while it is the highest in India. If maximization of take-home profits were the main objective, for an entrepreneur who has the flexibility to incorporate his or her business in any of these jurisdictions, Singapore offers the most rational choice - the report concludes.

To illustrate its findings, the report considers the case of a hypothetical start-up firm that expects to make an annual income of US$300k. Such a firm will have a total tax bill of only US$34k in Singapore while it would face an approximate tax bill of US$60k in Russia, US$63k in UK, US$90k in Australia, US$100k in US, and US$102k in India.

The authors of the study caution that each country's tax policies differ from those of the others in the exemptions, incentives, and depreciation allowances that they permit. The major exemptions available to companies have been considered in this analysis but their esoteric nuances have been ignored. In addition, some countries impose additional taxes at the state or local level (such as in the USA) or impose indirect taxes. These have been ignored in this analysis. However, the authors believe that inclusion of such taxes will further skew the analysis in favor of Singapore because the country does not impose any state or local taxes while most other countries in the group do.

The report also points out that taxes should not be the only reason when deciding on where to relocate a business. For small to mid-size firms, ease of doing business is another important factor as such firms have limited resources to deal with regulatory inefficiencies and red-tape. The report highlights the fact that Singapore outranks the other five countries in this category as well - World Bank's Ease of Doing Business Index ranks Singapore as #1 among world's 183 nations.

Jacqueline Low, the Director of Corporate Services at Janus Corporate Solutions - a leading Singapore company setup services firm that runs the site - further emphasized the long-term attractiveness of the Singapore tax policies by adding, "The historical trend of corporate tax rates in Singapore over the last 5 years shows consistent reduction. Per government's stated policies, this trend is likely to continue in Singapore whereas in most other countries this trend is pointing upwards due to the rising budget deficits that these governments face."

A copy of the full report can be downloaded from website.

About website is owned and operated by Janus Corporate Solutions Pte. Ltd, a leading Singapore-based professional services firm that offers company incorporation, tax planning, accounting, work passes for expatriates, and related corporate services to its global clients who are operating out of Singapore. For more information, visit:

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Media Contact:
Andrew Chen
Email: achen (at) guidemesingapore (dot) com
Phone: +65 6222 7445

Janus Corporate Solutions Pte Ltd
16 Raffles Quay #32-04
Hong Leong Building
Singapore 048581


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