Singapore's low corporate tax status under threat

Thailand and Vietnam are catching up.

Singapore may have the 9th lowest corporate tax rate in world, but ASEAN rivals Thailand and Vitenman are catching up by cutting rates by 3%. Macau has a corporate tax rate of just 12%. Across Asia and the world countries are waking up to the lets lower the corporate tax rate to attract foreign business game, traditionally one of Singapore's key selling points. Singapore is still the lowest corporate taxed in ASEAN, but its neighbours are signalling they want to be competitive and secure their own pot of foreign investor gold.

A new global surtvey of tax by KPMG shows countries are still competing to lower corporate tax rates to attract business.

For countries that impose an indirect tax, Hungary is the country imposing the highest rate at 27 percent. The lowest is Aruba at 1.5 percent.

In Asia, Singapore has the second lowest indirect tax rate at seven percent, just behind Taiwan at five percent.
Among countries that impose a corporate tax, the United Arab Emirates holds the top spot with the highest rate at 55 percent. The lowest is Montenegro at nine percent.

Singapore, at 17 percent, has the ninth lowest corporate tax rate. Hong Kong at 16.5 percent is ranked just above Singapore, while Macau and Oman take the third lowest corporate tax rate position at 12 percent.
The issue of tax transparency and morality will continue to contribute to changes in the global corporate tax landscape.

As indirect tax continues to rise on a global level, companies are forced to evolve and come to grips with the fact
that indirect tax is here to stay. Around the world, countries have shifted and continue to shift to indirect tax, rather
than direct tax to boost revenues. 

The number of changes to indirect tax regimes in recent years has been overwhelming, as have the challenges
associated with implementing and reporting these changes.Japan is a recent example. The Japan consumption tax rate rose from 5 percent to 8 percent effective 1 April 2014 and a further increase to 10 percent may take place in 2015 depending on the economic situation.

Standard, Reduced and Intermediary rate increases at the end of 2014 are also expected in Luxembourg, the details of which are outlined in the footnotes section of this publication.

Other types of indirect taxes are also now being introduced, most notably the financial transaction tax (FTT).