Singapore's extremely low tax rates put European hubs under threat: report

High-value industries are flocking here.

Steep tax rates are pushing high-value industries out of Western Europe and into low-tax havens like Singapore, according to a report by international accounting and consultancy network UHY.

UHY revealed that on average, Western European corporates suffer a hefty 38.9% tax burden. Singapore's tax burden, meanwhile, is relatively light at just 15.1%.

UHY noted that low tax rates is a key factor behind Singapore’s success in attracting corporate headquarters and professional and financial services companies, which creates highly paid jobs.

Singapore is now home to over 200 banks and has growing expertise in other high value sectors including pharmaceuticals and medical technology.

“Unless they address their tax burdens, many Western European countries could find themselves pinched between lower cost, lower tax Eastern European countries that are able to offer equally strong manufacturing skills bases, and global cities like Singapore, Dubai and Qatar, that are consciously targeting the industries that create the most wealth,” stated Ladislav Hornan, Chairman of UHY.