Ease Of Paying Taxes In Singapore Make It An Advantageous Business Destination For Westerners
As taxes both in Asia and America are being raised to an unmanageable height, and as economic recession becomes an issue being floated on too often on the news recently, Singapore has maintained its attractive tax schemes, making it a foremost business destination in Asia for people from the other side of the globe.
According to a recent survey by audit, tax, and advisory firm KPMG, the average global personal income rate has increased by 0.3 percent as governments raise taxes in order to make up for expenditures.
In the United States, taxation is currently a controversial topic as tax cuts implemented from the Bush administration will be expiring at the end of 2012. As a result, US workers would have to pay more taxes to compensate for the tax cut, with additional taxes ranging between US $500 and US $2,000. US workers with higher incomes would also have to more taxes.
In France, tax rates are also being bumped by the government to help compensate for its large expenditures. The French government is also implementing 150 to 300 tax hikes for its industries, as well as a 75% income tax rate for high income earners. As a result, French billionaire business tycoons are applying for citizenships elsewhere to avoid the new tax rates.
In Asia, economic bigwigs such as Japan and Korea are withholding extra taxes off companies and individuals, and high earners respectively. Japan was adding a Special Reconstruction Surtax of 2.1% for rehabilitating its infrastructures that have been ravaged by the recent earthquake/tsunami. South Korean, meanwhile, has raised its tax rates for its society’s highest earners.
Singapore’s tax system is one of the lowest in the world. The headline corporate tax rate is pegged at 17% (from 26% in 2000) for incomes below the SG $300,000 while it’s only 20% for individuals earning more than SG $320,000. In the US, the minimum tax rate is pegged at 33% excluding the tax hikes that will be implemented in 2013.