As mentioned earlier, BEPS occurs when companies take advantage of tax limitations and regulations so that they are basically paying minimal tax based on the laws of each country. Sure, there is no law against doing so as the companies are still charged taxes on their company profits. However, this has affected government funding and income so much so that the situation has turned into a global concern. After all, tax is one of the reasons why governments are able to collect money and go about their business of providing for their citizens. Corporations who seek loopholes in tax regulations will end up paying less tax and thus, governments will likely find themselves in trouble particularly when it comes time to budget their expenditure. This is the reason why the BEPS initiative came about. One of its priorities is to stamp out legal tax evasion. The entire programme is slated to take up to 24 years and at the end of the time period would result in better international tax management systems.
Lowest corporate tax rates in the world
As governments clamp down on such abuse of international tax treaties, it thus makes more sense to opt for registering companies in countries which already have existing tax regulations that are fair and which does not put too much of a levy on companies which have physical locations within the region. In this instance, Singapore would prove to be a good choice simply because it has predominantly offered one of the lowest corporate tax rates in the world. Additionally, Singapore has always been at the forefront of clean bureaucratic systems. Thus, you would be able to note many multinational companies from around the world – including business conglomerates from the United States, Indonesia and Australia – which have set up offices in the city state. The Singapore government has played its part in ensuring that bureaucracy is kept to a minimum and its taxation straightforward. Thus, companies have no reason to avoid paying the accurate tax rate.
Incorporate or register a Singapore company
Due to the fact that Singapore is a world renowned economy, just the fact that the physical location of the business is in the city state lends some weight to investors around the globe. Its location and close proximity and relationship to economies such as the United States and China means that Singapore remains at the peak of economic growth as well. True to form, it was one of the few world economies which did not succumb to the recent slump. At present, it still remains a force to be reckoned with in the region – if not the world. Organisations which aim to incorporate or register a Singapore company will find that doing so can open doors for any business. Amazingly this is without any regard of sector or industry – that is the standard that Singapore stands at. There are various legal and accounting aid professionals which offer company registration services. They would be able to give a better understanding to prospective investors and information about business opportunities in Singapore. Contact us to find out how we can help you!