Singapore

Introduction

Singaporeis located on the southern tip of the Malaysia peninsula. One of the original tiger economies, Singapore is now a major international financial and trade centre and rivals Hong Kong as the world's biggest container port. Singapore has a reputation for being highly regulated; however it is in reality, a carefully administered jurisdiction.

Law and Taxation

Singaporehas a British based legal system and corporate law operates on a common law basis. Singapore is a signatory to a number of double tax and investment protection treaties which provide some tax planning and security advantages. A Singapore company with external investments that are correctly structured and administered may not be liable for tax on profits generated from activities conducted outside Singapore. From Year of Assessment (YA) 2008, companies are taxed at a flat rate of 18% on their chargeable income. A newly incorporated company that satisfies the qualifying conditions can claim for full tax exemption on the first $100,000 of normal chargeable income (excluding Singapore franked dividends) for each of its first three consecutive YAs. Estate duty was abolished on 15 February 2008.

Local Infrastructure

Singapore is a sophisticated international business and financial centre and as such there are numerous domestic and global banks, stockbrokers and finance houses. All the major international legal and accounting firms have offices in Singapore. Singapore has a stable government and a rich pool of professionals who are able to assist in all international business transactions.

With an airport that serves as a regional hub for over 100 destinations, state of the art communications and a sound infrastructure, Singaporean companies are well positioned to take advantage of its many tax treaties.