May 2nd, 2012—Singapore—In Asia, Singapore is one of the hottest destinations for setting up an offshore company. Currently, about a few thousand offshore companies are formed in the country each year with the numbers expected to rise steadily over the next few years. Many believe that Singapore’s pragmatic taxation policy is one of the key reasons why so many foreign business owners are keen to setup a company in the country.
According to SingaporeStartup.com (www.singaporestartup.com), Singapore’s taxation policy is quite popular amongst business owners and it is amongst the most practical policies in the continent. In Singapore, corporates pay a maximum taxation rate of 17% which is the second lowest corporate tax rate in Asia. At the same time, there are several incentives for startups such as zero taxes on income up to SGD $100,000 for each of the first three years in business. Such kind of laws help in attracting innovative business ventures that need all the capital they can get in their initial years for growth. Offshore companies that have foreign sourced income and where the income is not deemed to be remitted to Singapore can have zero tax obligations as Singapore continues to follow the territorial system of taxation. This is a huge benefit as far as offshore company owners are concerned and such policies are matched only by Hong Kong in Asia.
As per SingaporeStartup.com, taxes have not only been low in the country, but over time Government of Singapore has actually reduced corporate taxes. This has enabled the country to attract some of the best companies from across the world and overall tax collection has gone up purely because of the number of profitable companies operating in Singapore right now. Also being able to attract offshore companies so easily with its pragmatic policies, it has helped Singapore’s overall economy to grow as well with more foreign investment and job creation over the past many years.
SingaporeStartup.com is a leading portal which focuses on offshore companies in Singapore. The site provides in-depth guides on how to setup an offshore company in Singapore and also provides information on laws as well as policies which affect offshore companies in the country. For more information, please visit http://www.singaporestartup.com/