Singapore, or the Republic of Singapore, has been and continues to be one of the top three countries for ease of doing business and an attractive business center with an international business atmosphere that has been confirmed by numerous awards. It refers to the countries of the high-income economic group, with a GDP per capita of $64,103 and a population of about 5,704 million people. Low taxes, a stable political environment, a strong strategic location, a well-educated workforce, and an open economy make Singapore one of the most business-friendly regions around the world.
Ease of Doing Business in Singapore
Singapore is often called heaven for financiers and the largest offshore zone worldwide. With no natural resources, the country has managed to become one of the leaders of the world economy solely through the accumulation of money in its banks, not only of Asia but also of Europe and America.
The low level of corruption and lack of bureaucracy are among the main advantages of launching a company in Singapore. At the same time, the well-developed infrastructure, opportunities to access international markets, the low unemployment rate, and the taxation system only encourage both small and big businesses to grow. This is probably the reason why there are more than three thousand offices of various global companies in the territory of the country.
According to the Doing Business 2020 report, ease of doing business ranking in Singapore is:
- Rank: 2
- DB score: 86.2
The ease of doing business score (DB score) serves as the basis for ranking economies on their business environment and shows an economy’s absolute position relative to the best regulatory performance, while the ease of doing business ranking is an indication of an economy’s position relative to that of other countries’ economies.
Business Taxes in Singapore
Taxes are imposed on all income of companies or partnerships (except proceeds from the sale of fixed assets) that have been generated either in Singapore or from certain foreign sources as a result of trade or business activities.
There are tax payments, also known as the total number of taxes, paid by businesses (plus electronic filing). This tax is counted as paid once a year even if payments are more often. The World Bank research shows that Singapore’s tax payments number is 5.
The income tax rate in Singapore is one of the lowest in the world. It is a tax imposed on individuals or business entities (taxpayers) in respect of their income or profits earned. Income tax rates may vary by the types or characteristics of the taxpayer and the type of income.
As for Singapore Personal Income Tax Rate, it is 22%.
A corporate tax (also called corporation tax or company tax) is a direct tax imposed on the profits of a corporation. The corporate income tax (CIT) rate in Singapore is 17%. Singapore is one of the few countries in the world that continues to cut corporate tax rates and constantly offers various tax incentives and exemptions to attract international investments.
There is also the GST, or Goods and Services Tax, which is a consumption tax imposed on the supply of goods and services in Singapore, as well as the import of goods into Singapore. In other countries, GST is known as Value Added Tax or VAT. The GST in Singapore is currently 7%.