A Robust And Strong Economy
The country of Singapore has a highly developed free-market economy. It is primarily based on manufacturing, finance, and trade. Services employ 80% of the country's workforce and 75% of its GDP. Singapore has been able to maintain low inflation while also achieving a very low unemployment rate at the same time. The country grew at a rate of 2.8* in 2014 and its 2015 per capita GDP was estimated at over $80k. The gross national savings are almost 50% of the country's GDP. Each year Singapore exports almost $550 billion in exports. This has resulted in a country with a population of just 5.25 million has been able to amass the world's 10th highest foreign currency reserves. Singapore's current account surplus is growing and it does not have any external public debt. It actively invests its capital abroad. The government judicially utilizes its strong financial condition, funding health care, transport, education, and housing subsidy programs. These attributes all help to provide Singapore with a well-managed and very robust economy. The fact that such a small country that has limited natural resources has been able to achieve such a strong economy is a true testament to the planning and wisdom of the country's founding leaders.
An Attractive Tax System
Singapore features one of the world's most rational and simplest tax systems. There are no taxes levied on dividends received or capital gains from businesses. That makes the country especially attractive to entrepreneurs wanting to incorporate and create a new business.
A tiered tax system is used by Singapore for both corporate and personal taxes. Significant tax breaks are received by new firms during their initial three years with their tax rate reduced to 0% on their initial $100K of income. The country's corporate tax has a 17% cap.
In a similar manner, the personal tax rate begins at 0%, and then increases gradually to 20% maximum for incomes over S$320,000.
Double Taxation Is Avoided
Singapore has Avoidance of Double Tax Agreements (DTAs) established with more than 50 countries. The agreements have been designed to make sure that economic transactions that occur between the treaty country and Singapore do not result in double taxation. Singapore also offers Unilateral Tax Credits (UTCs) with countries they do not have DTAs with. Therefore, tax resident companies in Singapore are unlikely to experience double taxation.
No Currency Controls And 100% Foreign Ownership
Singapore allows foreigners to own 100% of a Singapore incorporated company's stock. It is not necessary to have any local shareholders or partners. That means a company can be started with whatever kind of capital structure you want and distribute its ownership to best suit your investment requirements. There are also no restrictions on how much capital can be brought from your home country for investing in your company in Singapore.
There are no restrictions imposed by Singapore on the profit repatriation. Also, capital gains from selling a business don't have any taxes imposed on them. And there are no taxes on dividends that are paid out to shareholders.
There are no restrictions imposed by Singapore on moving foreign currency out of or into the country. Moving funds without friction across borders provides a great deal of flexibility to businesses. Contrast that with the situation in countries like India and China which have huge hurdles imposed on foreign currencies movement.
Ease Of Operation and Incorporation
Singapore features one of the world's most bureaucracy-free and efficient regulatory frameworks. For nine years concurrently, the World Bank has ranked Singapore as number one on its survey Ease of Doing Business. They have very straight requirements for incorporation and it is a simple procedure. In most cases, it takes less than one to get a new company incorporated. Piloto Asia will guide you through the process.
Yearly compliance requirements are also simple and free of any complicated or unnecessary paperwork.
