GuideMeSingapore

GuideMeSingapore.com recently released a Comparative Tax Analysis Report that compares the tax policies of six countries: UK, USA, India, Australia, Russia, and Singapore. For each country, the report provides an overview of its tax policy after incorporating changes proposed in 2009. Using the tax rates for the year 2009, the report performs a comparative analysis of the tax impact on a new firm incorporated in each of these countries.

According to the report, the tax burden imposed on new firms is the smallest in Singapore while it is the highest in India. If maximization of take-home profits was the main objective, for an entrepreneur who has the flexibility to incorporate his or her business in any of these jurisdictions, Singapore offers the most rational choice.

To illustrate its findings, the report considers the case of a hypothetical start-up firm that expects to make an annual income of US$300k. Such a firm will have a total tax bill of only US$34k in Singapore while it would face an approximate tax bill of US$60k in Russia, US$63k in UK, US$90k in Australia, US$100k in US, and US$102k in India.

The authors of the study caution that each country s tax policies differ from those of the others in the exemptions, incentives, and depreciation allowances that they permit. Although the major exemptions available to companies have been considered in their analysis, their esoteric nuances have been ignored.

Interested in doing business in Singapore? Find out how to incorporate a Singapore company.