Why Singapore?

Singapore consistently ranks as one of the top most competitive and profitable places for business investors. Singapore today is a reputable financial centre, a key regional trading centre, the world's busiest port, and a top location for investments and doing business.

Small and medium size enterprises (SMEs) are critical to Singapore's economic success. There are more than 100,000 SMEs in Singapore, accounting for about 35% of the economy's value added and more than 50% of the employment.

Singapore economy is based on free enterprise, with no restrictions on foreign ownership of business. The repatriation of profits and the import of capital are freely allowed. Singapore has low corporate tax rate compared to other leading economies in the world. A company is taxed at a flat rate on its chargeable income. With effect from year 2005, the corporate tax rate has been reduced from 22% to 20%. Capital gains are not taxable.

There is minimum red-tape for doing business in Singapore. The country is one of the top five least corrupt countries in the world and least corrupt nation in Asia. Singapore has been consistently ranked as one of the most competitive nations and best places for business in the world.

Singapore has a well-developed infrastructure that meets all the needs of business industry and is ranked as one one of the top three countries in the world for its infrastructure capabilities.

Singapore Tax Summary

The advantages of establishing you company in Singapore are numerous, and include the an efficient tax system that provides a key incentive to reinvest your profits into growth.

• Zero tax for new Singapore companies on the first 100K annual profits for the first 3 years
• All companies to enjoy low 9% corporate tax rate for profits up to 300K
• Overall company tax rate 18%
• Allow tax deduction for other specified borrowing costs that are paid as a substitute for interest expense, from 2008.

Singapore has implemented a one-tier corporate tax system. Under this system, the income tax payable on the normal chargeable income of a company is a final tax and shareholders will not be taxed on such dividend income. There is no capital gains tax imposed in Singapore. Singapore does not levy a withholding tax on dividends.