Corporate tax considerations Singapore Vs Australia

[susanjain]

A comparison of how businesses are taxed in Singapore vis-a-vis Australia reveals that entrepreneurs can gain significant tax savings by relocating to Singapore. Here are some interesting features.

1. Singapore's corporate income tax rate stands at less than 9% for profits up to S$300,000 and flat 17% above S$300,000. Australia's corporate tax rate is flat 30%.

2. Singapore resident companies are taxed only on income that arises from Singapore or when foreign sourced income is remitted into Singapore. The income sourced overseas and retained outside the country is not taxable. Australian resident companies pay corporate tax on their worldwide profits.

3. Under Singapore's single-tier tax system, tax paid by a company on its profits is the final tax and all dividends paid to its shareholders are exempt from further taxation. Resident shareholders in Australia receive a tax credit on their dividends only when it is declared in their personal tax returns. Non resident shareholders are not eligible for any such tax credits.

4. Australia's VAT rate is 10%, Singapore's GST rate stands at 7%.

5. Singapore has concluded nearly 70 tax treaties while Australia has around 42 treaties in place.

[url=http://singapore-forum&#46com]Singaporum's tax system[/url] is one of the main reasons companies choose Singapore as their Asia Pacific headquarters or regional base.

[Kooky]

Um, yeah, thanks for the info, Susan. I find it hard to believe that a company that claims to be as professional as yours needs to spam message boards, to be honest.

[Morrolan]

are you... ?

ahh... never mind...

[Aliya]

I LOVE the spammer avatar.