Singapore
The Republic of Singapore is a unique city-state in Southeast Asia, located on an island separated from the southern tip of the Malay Peninsula by the narrow Johor Strait.
Singapore boasts one of the most developed economies in the world, characterized by low taxation and a business-friendly environment. Transnational corporations play a significant role in shaping its economic landscape. The country’s Gross National Product (GNP) per capita consistently ranks among the highest globally (in 2008 — USD 38,972.1).
Singapore has repeatedly demonstrated its global competitiveness in economic rankings. In the 2009 World Economic Forum (WEF) report, it ranked 3rd among the world’s most competitive economies, up from 5th in 2008 and 7th in 2007.
Singapore
Singapore is recognized as one of the East Asian “Tigers” due to its rapid economic growth, which has elevated it to the ranks of developed nations. The country is renowned for its electronics manufacturing industry, which includes products from major European, American, and Japanese corporations as well as local companies like Flextronics. Other well-developed sectors include shipbuilding, financial services, and biotechnology research. Singapore is also one of the world’s largest producers of CD drives.
Since 2008, Singapore has operated under a single-tier corporate taxation system, where taxes are levied only at the corporate level. Dividends distributed to resident shareholders are fully exempt from taxation.
Key features of Singapore’s tax system:
• Flat corporate tax rate of 17%, applicable to both local and foreign companies (Chapter 134 of the Singapore Statutes).
• Income earned by a non-resident Singapore company from foreign sources, provided it is not remitted to Singapore, is not subject to income tax.
• The territorial tax principle aligns Singapore’s tax system with those of Gibraltar and Hong Kong.
In addition to corporate income tax and goods and services tax, Singaporean companies pay property tax and stamp duties. Tax administration is managed by the Inland Revenue Authority of Singapore.
