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Singapore's economic strengths and weaknesses
The economy of Singapore
The economy of Singapore
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Recommended: Singapore's economic strengths and weaknesses
• Many investors are now turning to Singapore for the establishment of their operations due to various grounds. The ease of operating and setting up a business is a key motivator. Another vital determinant is Singapore’s popular tax regime-famously known for its eye-catching personal and corporate tax rates, lack of capital gains tax, tax relief measures, widespread double tax treaties and one-tier tax system.
Brief History of Singapore Taxation
Income tax was introduced in Singapore in the year 1947, under the British colonial rule. The Income Tax was later imposed in 1948. This Act was founded on Model Colonial Territories Wages Ordinance that was devised for British colonies during the time. Thus, Singapore’s tax decrees share familiar historical roots with those from Australia, South Africa, Malaysia and New Zealand.
Singapore Tax Governing Power
Singapore’s Income Tax Act is the governing law involving individual and corporate taxation issues. Previously known as the Inland Revenue Department, Inland Revenue Authority of Singapore or IRAS was founded in the year 1960. It included all key revenue collection organizations in one body that enabled collection and administration processes become better managed and streamlined. This department has made its mark as a service-friendly tax collector and efficient tax administrator too.
IRAS is the key department accountable for collecting the different taxes paid to the government. They include property tax, income tax, goods and services tax, stamp duties and betting taxes. As the major tax manager, the department plays a major role in tax policy creation by giving policy inputs and technical implications in every policy. It also actively monitors major developments on external...
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... is never imputed to the shareholders.
Singapore follows a territorial taxation basis
Singapore personal levy rates begin at 0% and are also capped at 20% for citizens and a flat rate of about 15% for non-residents.
Singapore has no capital profits tax
All personal taxes are paid according to the calendar year, which starts at January 1st and ends at December 31st.
Singapore has completed more than fifty bilateral tax treaties to assist resident companies reduce their tax burden too.
Singapore’s tax rates have become one of the lowest among all developed countries. This is an attractive feature for outsiders working here. It has also attracted foreign ventures in the country, thereby creating more job opportunities and stabilizing the economy. When compared to other countries in Asia, taxation in Singapore remains relatively fair and favourable for businesses.
Our current system of taxation is a varied rate percentage based on different income brackets. Many say that it violates our constitutional rights through unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our Federal Income Tax System, prompting many to question why it is still being used (Peters, 2013). The current system although bringing in over $3 trillion, taxes income multiple times, and includes the taxing of estate, labor, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, which is set up and maintained by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001). One can be hard pressed to find an advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and it has...
Protects the taxpayer during hard times, when income is reduced, the tax rate also become shifts to a lower bracket.
The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Be...
Singapore as a country has had various transformations throughout its history, however the period 1950 and 1970 was quite critical. Much of these changes had a lot to do with the development of trade and manufacturing. This is without forgetting the financial sector where the intention was to come up with a financial hub that could be used in economic development. Looking at the case of Singapore, we would say that it is a productive economy with a very high market competition. This observation has been further clarified by the Swiss International Institute for Management Development, going with their report that they released in the year 2001 (Chellaraj & Mattoo, 2009). In this study, we intend to evaluate the case of political economy of development in Singapore and examine the tensions between the state and various economic institutions. In additions to examining this institution, we would also like to examine how these variables have contributed towards the attainment of favorable growth rates and economic prosperity.
In realising that foreign investments are the key source of the nation’s economic rise, the Chinese government has given special preferences to foreign investors (Financial Express, 2006). This is mostly done through reduction of most favoured nation (MFN) tariff rate. In India, on the other hand, fair competition exists between domestic and foreign investors. Although the Indian government states that it aims to reduce its MFN tariff rate, which currently doubles the rate in China, to other ASEAN country levels, it is in reality a big challenge because a large portion of the nation’s tax revenue comes from customs tariffs (Henley, 2004).
Singapore acts as a role of an entrepôt for Southeast Asia due to their strategic location, port infrastructure and highly skilled workforce. Singapore also purchases raw materials from other country and then refine the product into a better product to re-export. The reason for Singapore to do this is because of the lack of human and natural resources.
Taxation is a compulsory levy imposed on the income, value of goods and services of individuals, partners and companies by the government. It is can be said to be an approach of imposing tax on the citizen. This imposition of tax, is expected to yield income which should be utilized in the provision of both basic and substantial infrastructural amenities, both social and security, as well as creates conditions for the economic well-being of the society at large.
As from 1 January 2010, the fiscal year is on a calendar year basis. Income Tax is payable by residents on non-exempt income derived from Mauritius less allowable deductions including interest on housing loan, subject ...
Myrsky, M. (2003). What does a Good Tax System Require. Finland: Eastern University of Finland.
We will find out how Singapore manage to raises it economic development in such rapid growth aftermath of war and separation.
Janus Corporate Solutions. (2011). Introduction to Singapore’s political system. Guide me Singapore. Retrieved April 4, 2011 from http://www.guidemesingapore.com/relocation/introduction/singapores-political-system
Hawker centres and food courts are Singapore’s pride and jewel. These dining areas make up our food culture which we have loads of pride in. What makes the food courts and hawker centres in Singapore so different from others in the world? Well, due to the presence of multiculturalism in Singapore, we have many foods originating from many different races, mainly Chinese, Indians and Malays are the three main races in Singapore. Due to this, our food courts and hawker centres sell a myriad of cuisines ranging from local cuisines to western cuisines. Thus, those do dine there are often spoilt for choices and do not know what to buy. However, one thing for sure is that they would most definitely feed their hunger with the delicious food available there. Moreover, on average the cost of food, there is inexpensive. The cost of food ranges from as low as one dollar to a maximum as seven dollars! Thus, what’s there not to love about
Our world is becoming increasingly connected and global and the role of international business is increasing. Each country has its own set of unique customs and traditions. Each citizen's beliefs define the cultures by which each citizen abides by in normal everyday life, thus serving as the very foundation of the country. For example, in Saudi Arabia a citizen convicted of stealing will have his hand cutoff. In the United States, a citizen convicted of stealing would possibly receive only short term probation. The American Heritage Dictionary defines culture as, "The totality of socially transmitted behavior patterns, arts, beliefs, institutions, and all other products of human work and thought characteristic of a community or population." Seemingly minuet gestures or situations which carry different meanings in particular cultures can make or break business deals. Global managers from the United States or from any other nation have to be aware of the various cultural differences. Injecting certain specific skills, such as diversity training for expatriate managers, will bridge the gap between cultural differences such as language, religion, and values.
Singapore is one of the most beautiful, fastest growing countries in the world and has many attractions for all ages, which makes it a perfect place for a family getaway or a honeymoon. With a motto like “onward Singapore” it’s hard to not to look at the innovations and ingenuity that Singapore has set forth. With many attractions one can keep themselves busy for a long time; with activities that range from viewing the city skyline to catching up on Singapore’s rich history, there is so much to do and so little time. With the abundance of activities and places to visit, the eccentric Singapore has more to offer other then the cultural and heritage aspect, it also has arts, entertainments, nightlife, nature, wildlife, sports, and leisurely cruises of the scenic Singapore. With Singapore’s rich history, fun attractions for all ages, and cultural and heritage aspect, it makes it a must-go destination when traveling around the world.
In addition, after the 2011 Singapore general election, the government of Singapore has greatly changed its economic approach and it seems to be better for the economy of Singapore so far. On the other hand, measures have also been taken to cool down the property market which has constantly affected inflation rates, also tightened the foreign labour policies that constantly influence the labour market and unfold its impacts onto the Singapore’s economy as it comes back in one round. The unemployment rate in Singapore has been maintaining itself as being one of the lowest numbers in the world. The majority of Singapore’s labour force is well educated and highly skilled. Even primary education is a must for all citizens (Economywatch.com, 2010). In addition, for the year 2010, Singapore had the 8th largest current account balance in the world at US$49.454 billion. To conclude, Singapore has come so far from its sunken economy since independence in 1965 to become a booming and prosperous economy that it is