Singapore tax structure and tax rates are among the most competitive in the world, second probably only to Hong Kong. Lower tax rates reduce the burden on individuals and companies, reward effort and achievement, attract and retain talent, and promote entrepreneurship.
Globalisation of trading transactions or projects in Singapore is characterised by the involvement of more than three contracting parties, buyers and sellers, brokers, companies or parsonalities of more than three countries. These deals are closed in Singapore due to its location, business hub facilities, legal and securities advantages, these deals probably should qualify for tax concessions if administratively feasible.
A concessionary tax rate can also serve as an incentive in Singapore’s globalization drive. Globalisation increases international mobility and travelling of staff, managers and overseas postings, etc. A concessionary tax rate will compensate for frequent travelling and entertainment expenses.
Tan Kok Leong
Principal
TKL Consulting
Monday January 16, 2006