Singapore Implements New Policies For Tax Treaties
The Singapore government is making sure that the city state won’t become a haven for tax evaders from Europe and US as Singapore becomes more famous as a premier destination for westerners who are looking at investing their wealth elsewhere.
According to recent news, Singapore has updated its tax treaties with countries like Germany to minimize the likelihood of tax evasion for expats who are just escaping tax schedules in their home country. The crackdown will culminate in the release of an integrated Standard of Exchange of Information under the Double Taxation Agreement (DTA) between both countries.
Meanwhile, the Monetary Authority of Singapore (MAS) has recently announced that tax offenses would be categorized under the law as a type of money-laundering. The regulations would be implemented starting July 1 next year. The announcement is a warning for all violators and would-be violators in the banking and finance sector who are helping clients hide their wealth in Singapore.
Wealthy Westerners head out to Singapore for ease of doing business in the country. The opportunity for growth is also tremendous in Singapore with its number of emergent and established industries. The high quality of life in the country offers also present a good enough reason for westerners to relocate to Singapore.
Recent tax hikes in Europe and the United States have made Singapore a leading destination for foreigners where they can find a new home. Singapore is being cautious though that these foreigners are just relocating to the country to avoid the tax hikes in their home countries.
With the new regulations in place, the MAS is looking at giving severe penalties and punishments for westerners who want to do such things. The authority is also implementing the new policies to influence people from the finance and banking sector to practice due diligence for their prospective western clients.