FacebookInstagramTwitterContact

 

Audience Ceremony           >>           First Meeting Of Royal Birthday Celebration National Committee           >>           Man United Edge Arsenal In Alexis Sanchez, Henrikh Mkhitaryan Swap           >>           Barcelona's Second-Half Surges A Key To Their Success This Season           >>           Real's Big Win Buys Zidane Time, Martial's Future, PSG Rocked By Lyon           >>           Chelsea And Sergio Aguero Among Those Rising Above Transfer Tension           >>           Camps Ready But Bangladesh Delays Repatriation Of Refugees           >>           Alert Level 4 Raised After Mayon Eruption           >>           Indonesia Seeks Immediate Return Of Two Fishermen Released By Abu Sayyaf           >>           Budget Is More Than Giving ‘Goodies’, Raising Taxes: Heng Swee Keat            >>          

 

SHARE THIS ARTICLE




REACH US


GENERAL INQUIRY

admin@brudirect.com

 

ADVERTISING

marketing@brudirect.com

 

PRESS RELEASE

pr@brudirect.com

 

HOTLINE

+673 222-0178 [Office Hour]

+673 223-6740 [Fax]

 



Upcoming Events


The Incredibles 5Km Fun Run
January 7th, 2018 | 00:00 AM


KIDS PANCAKE MAKING & DECORATING CLASS
January 21st, 2018 | 14:00 PM


THE 1 NATION FREE WORKOUT
January 21st, 2018 | 17:00 PM


20th Consumer Fair
January 24th, 2018 | 00:00 AM


Mazalina Wedding Expo
January 26th, 2018 | 00:00 AM





Prayer Times


The prayer times for Brunei-Muara and Temburong districts. For Tutong add 1 minute and for Belait add 3 minutes.


Imsak

: 05:04AM

Subuh

: 05:14AM

Syuruk

: 06:35AM

Doha

: 06:59AM

Zohor

: 12:33PM

Asar

: 03:54PM

Maghrib

: 06:28PM

Isyak

: 07:41PM

 



The Business Directory


 

 



World Business


  Home > World Business


These Are the Taxes Singapore Could Hike in Next Month's Budget


Photographer: Nicky Loh/Bloomberg

 


 January 12th, 2018  |  09:41 AM  |   826 views

SINGAPORE

 

Speculation is buzzing that the Singapore government will raise the goods and services tax in its Feb. 19 budget rollout. But GST probably won’t be the whole story.

 

Authorities have several other options to increase taxes, or at least signal that they’re needed in the coming years, as the city state grapples with rising health and retirement costs as the population ages rapidly.

 

Here are a few other measures to watch as the budget is announced:

 

1. E-commerce

 

Economies in the region are just starting to tackle the sticky issue of how to help level the playing field between brick-and-mortar retail and online vendors through a tax on the latter.

 

While Malaysia, Thailand and Indonesia all have been brainstorming this kind of levy, Singapore may have to move faster, said Chua Hak Bin, a senior economist at Maybank Kim Eng Research in Singapore. That’s because any increase in the GST would give online retailers an even bigger unfair advantage, he said.

 

Francis Tan, an economist at United Overseas Bank Ltd. in Singapore, sees the same urgency for an e-commerce levy.

 

“It’s pretty important right now, especially when there’s a growing share -- rising at a double-digit pace every year -- of Singaporeans shopping online,” he said. “They just have to plug this gap” between taxing online and conventional stores, he said.

 

Online shoppers in Singapore generally aren’t taxed for their purchases if they don’t exceed S$400 ($300), Indranee Rajah, senior minister of state for law and finance, said in a November interview. Given how quickly online vendors are changing the way people shop, such a tax change should have been achieved “probably yesterday,” she said.

 

2. Estate tax

 

Singapore removed the tax on assets for people who died after Feb. 15, 2008, and it’s possible the government may seek to reinstate the estate duty at some point, said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. The levy fits the government’s goal of broadening the tax base and ensuring that the fees are equitable.

 

“It does send across a very important message about equitibility -- to make sure that when there’s inter-generational transfer of wealth, some of this is to be redistributed” by taxing part of it, he said.

 

3. Personal income, corporate taxes

 

Income tax rates in Singapore are among the lowest in the world, and there may be room to adjust those without threatening the city state’s competitiveness.

 

The tax rate for top earners, at 22 percent, compares favorably to a 30 percent average across Asia and 34, 35 and 36 percent in Latin America, Europe and North America, according to data compiled by tax and financial advisory firm KPMG LLP.

 

On the corporate side, Singapore ranks No. 2 in the world in the World Bank’s ease-of-doing business index, including a No. 7 ranking in the “paying taxes” sub-category. The overall ranking is three spots higher than rival Hong Kong.

 

But with tax competition heating up across the world as the U.S. lowers rates, it’s unlikely Singapore will move in the opposite direction.

 

Finance Minister Heng Swee Keat, in response to a question on the U.S. tax cuts this week, gave no hints of possible adjustments.

 

“There is increasing competition in the global arena,” said Heng. “We must continue to develop and strengthen our competitive advantages, by maintaining our pro-business environment and building on our connectivity to the global markets and our strong links” to Southeast Asia and Asian economies, he said.

 

4. Virtual currencies

 

Officials like Ravi Menon, managing director of the Monetary Authority of Singapore, have been careful not to cast a judging eye on the hype around cryptocurrencies such as bitcoin, instead clarifying that while there may be investment risk, the authorities won’t regulate them beyond signs of illicit financing.

 

But Ernst & Young LLP is looking for more clarity on how to treat virtual currencies in tax terms. The Inland Revenue Authority of Singapore needs to address whether the currencies be treated as a commodity for tax purposes, or as a commodity derivative, “given the proposed statutory definition that it is a digital representation of value where the underlying asset is a virtual commodity,” said Amy Ang, a partner and financial services tax leader at Ernst & Young Solutions.

 


 

Source:
courtesy of BLOOMBERG

by Michelle Jamrisko

 

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at pr@brudirect.com

 

Related News


2,800 Cabbies Have Joined Grab, Uber

 2018-01-23 09:53:14

Hong Kong Bookseller Seized From China Train

 2018-01-23 10:25:15

Asia Wakes to Trump's Big Trade Move With Tariffs Aimed at Them

 2018-01-23 11:12:38