A Wonder Called Taxation Which Has the Power to Maintain Economic Growth in Singapore
Singapore is growing better day by day. They are among one of the most happening business hub in Asia. Well, a lot of work and understanding has been done behind the curtains for this to happen. The government is being very supportive on this and gives a lot of benefits to those entrepreneurs who want to have their business in Singapore. There is a special reason for this. They are for Economic growth. And indeed, the country is growing like never before. One of the helping hands in this is the taxation in Singapore.
Corporate tax Singapore maintains economic growth. What makes Singapore exceptional from other countries is of course the tax scheme. A lot of countries have huge taxes which is actually a way for them to gather revenue for the government to operate. However, Singapore makes use of the taxes only as a business motivation tool. Singapore has been managing everything in an efficient way that they even survive the economic crisis without having to raise the taxes. In a way, this is attracting more and more businesses in the country. The taxation in Singapore is becoming very attractive. The country has a good reserve and they are flourishing.
If we compare corporate tax in Singapore and that of the European Union, there is a huge difference. The tax is so high that they make use of borrowing usually. This results into high taxes. However, in Singapore, the tax is never growing and no strict measures need to be taken to sustain it.
KPMG, a tax, audit and advisory firm has come up with an interesting analysis after doing a survey on the corporate tax in Singapore. The final result was that: the country has the lowest tax in Asia, be it corporate or personal. In this case, entrepreneurs are benefitting more in terms of gains.
A peek in Singapore taxes:
A company who makes a profit of S$300 000 annually pays only 9% of the tax. On the other hand, the one which has a net profit of more than previous amount is subjected to 17% of tax. When it comes to a resident individual, the tax is only 20% provided the goes over S$320 000 per year. On the other hand, those who are under S$320 000 pay a tax of 0-20%. There is a strategy in keeping the tax low. This is so, because it grows up the economy and people are satisfied with their efforts in doing so.
The low tax is a venture for new business. It stimulates the satisfaction of entrepreneurs. Moreover, with the support of the government, foreign entrepreneurs, especially, feel in safe hands.
Corporate tax Singapore maintains economic growth. What makes Singapore exceptional from other countries is of course the tax scheme. A lot of countries have huge taxes which is actually a way for them to gather revenue for the government to operate. However, Singapore makes use of the taxes only as a business motivation tool. Singapore has been managing everything in an efficient way that they even survive the economic crisis without having to raise the taxes. In a way, this is attracting more and more businesses in the country. The taxation in Singapore is becoming very attractive. The country has a good reserve and they are flourishing.
If we compare corporate tax in Singapore and that of the European Union, there is a huge difference. The tax is so high that they make use of borrowing usually. This results into high taxes. However, in Singapore, the tax is never growing and no strict measures need to be taken to sustain it.
KPMG, a tax, audit and advisory firm has come up with an interesting analysis after doing a survey on the corporate tax in Singapore. The final result was that: the country has the lowest tax in Asia, be it corporate or personal. In this case, entrepreneurs are benefitting more in terms of gains.
A peek in Singapore taxes:
A company who makes a profit of S$300 000 annually pays only 9% of the tax. On the other hand, the one which has a net profit of more than previous amount is subjected to 17% of tax. When it comes to a resident individual, the tax is only 20% provided the goes over S$320 000 per year. On the other hand, those who are under S$320 000 pay a tax of 0-20%. There is a strategy in keeping the tax low. This is so, because it grows up the economy and people are satisfied with their efforts in doing so.
The low tax is a venture for new business. It stimulates the satisfaction of entrepreneurs. Moreover, with the support of the government, foreign entrepreneurs, especially, feel in safe hands.