Singapore's competitive corporate tax rate 3rd lowest in Asia Pacific

July 5, 2010 - PRLog -- Accounting giant KPMG's recent survey on corporate tax in the Asia-Pa Pacific region has once more listed Singapore as the third-lowest after Macau and Hong Kong.

Although Singapore's 2009 budget had cut the rate from 18 per cent to 17 per cent, the figure still higher than Macau's tax rate at 12 per cent and Hong Kong's at 16.5 per cent.

Mr James Nuben of Rikvin Corporate Services said that the KPMG data shows that Singapore's corporate tax rate has been dropping consistently from 22 per cent in 2004 to 17 per cent in 2010.

However, Singapore's corporate tax rate is still lower than the average of 27 per cent among 20 countries and territories surveyed by KPMG, he said.

"Singapore's current low corporate tax rate has made it a popular destination for foreign individuals to incorporate new companies and run their businesses," said Mr Nuben.

Mr Owi Kek Hean, head of KPMG tax services in Singapore said that the country's direct tax rates are competitive to attract foreign investments.

Mr Owi also said that governments in the region are moving away from direct corporate taxes and toward indirect taxes such as consumer tax. This move allows countries further reduce corporate taxes in order to attract more investors.

"The direct tax on profits must be competitive for Singapore to be an attractive investment destination," said Mr Owi.

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Visit http://www.rikvin.com/ for more information about this topic and the services we provide for company incorporation in Singapore. For Singapore tax rates: http://www.rikvin.com/taxation/