AsiaBiz Services recognizes that Singapore’s consistent tax policies bode well for entrepreneurs seeking incorporation in the city state. This comes on the back of the Deloitte 2014 Asia Pacific Tax Complexity Survey Report that was issued recently, and which specifically addresses why companies are attracted to Singapore.
The survey had scrutinised significant patterns in tax policies by obtaining feedback from more than 800 professionals in finance and taxation who are working in about 20 tax jurisdictions in Asia Pacific.
The Deloitte survey has shown that 90% of these respondents have expressed that in the last three years, Singapore has maintained its tax regime in adherence to three significant principles; consistency, predictability, and complexity.
85% of the professionals who participated in the survey informed that tax regimes are paramount in the deliberation to invest in Asia Pacific, and 93% reported that Singapore has very consistent tax policies that ensure the uniform and transparent enforcement of prevailing tax rules in the jurisdiction.
89% of the respondents of the survey felt that Singapore’s tax laws has a high degree of predictability, due to the ease at which information and resources are available for taxpayers to anticipate the course and potential amendments in the laws. In addition, the survey results also registered a high 86% confidence rate in terms of Singapore’s competency in tax administrative procedures.
The Deloitte survey also declared that Singapore has the least complex tax regime in the region with the agreement of 90% of the survey participants. This is due to the ease in interpreting and comprehending the tax rules and regulations in the Singapore. Comparatively, the tax regimes in India, China and Indonesia were expected to be among the three most complex tax regimes in the region by 2017, with 80% of the respondents expressing so.
“The ideals of tax consistency, complexity and predictability will exert an increasing impact on the investability of a market”, said Mr. James Nuben, the Head of Tax Division at AsiaBiz Services.
Among these three parameters, consistency in tax laws was perceived as more significant than predictability and complexity. Taxation issues as a whole are also a big concern for many of the survey participants as it has wide-reaching implications on their companies and corporate communities. 85% regard tax rules as critical and over half of them regard reputational risk with relation to tax policies to be of high importance when deciding to invest in the region.
“In that respect, Singapore has earned its stellar reputation by keeping up with the challenge of updating its tax bureaus with the latest legislation and constantly upgrading its tax inspectors. This is one of the reasons why Singapore ranks among the best places in Asia-Pacific to start a company in,” affirmed Mr. Nuben.
To start your company in Singapore visit https://www.asiabiz.sg/services/incorporation/