FacebookInstagramTwitterContact

 

Neutron Stars: Definition & Facts           >>           Youtube Reportedly Plans To Spend 'Hundreds Of Millions' On Red Originals           >>           1Password Now Lets You See If Your Password Has Been Leaked           >>           No, Postcards Won’t Solve Our Russian Interference Problem           >>           Microsoft And Xiaomi Will Pair Up On AI-Powered Speakers And Hardware           >>           Pele: Neymar Already The World's Best           >>           Former Trump Campaign Aide Rick Gates Pleads Guilty In Mueller Inquiry           >>           Tear Gas Kills Palestinian In West Bank Clash: Israeli Army           >>           Gold Futures Fall On Firmed U.S. Dollar           >>           1st LD: Former Trump Campaign Aide Rick Gates Pleads Guilty In Russia Probe           >>          

 

SHARE THIS ARTICLE




REACH US


GENERAL INQUIRY

[email protected]

 

ADVERTISING

[email protected]

 

PRESS RELEASE

[email protected]

 

HOTLINE

+673 222-0178 [Office Hour]

+673 223-6740 [Fax]

 



Upcoming Events


Brunei Gastronomy Week
February 23rd, 2018 | 08:00 AM


Negara Brunei Darussalam 34th National Day
February 23rd, 2018 | 10:00 AM





Prayer Times


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


Imsak

: 05:06AM

Subuh

: 05:16AM

Syuruk

: 06:33AM

Doha

: 06:56AM

Zohor

: 12:35PM

Asar

: 03:52PM

Maghrib

: 06:34PM

Isyak

: 07:43PM

 



The Business Directory


 

 



Singapore


  Home > Singapore


These Are The Taxes Singapore Could Hike In Next Month’s Budget


An aerial view of Singapore's skyline. TODAY file photo

 


 January 13th, 2018  |  15:30 PM  |   1223 views

SINGAPORE

 

Speculation is buzzing that the Singapore government will raise the goods and services tax in its Feb 19 budget rollout. However, Goods and Services Tax (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:

 

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 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, 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.

 

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 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 equitability -- 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.

 

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 per cent, compares favorably to a 30 per cent average across Asia and 34, 35 and 36 per cent in Latin America, Europe and North America, according to data compiled by tax and financial advisory firm KPMG.

 

On the corporate side, Singapore ranks No. 2 in the world in the World Bank’s ease-of-doing business index, including a seventh 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 US tax cuts this week, gave no hints of possible adjustments.

 

“There is increasing competition in the global arena,” said Mr 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.

 

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. BLOOMBERG

 


 

Source:
courtesy of TODAY

by TodayOnline

 

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 [email protected]

 

Related News


Existing Govt Still Right One – Musa

 2018-02-24 09:17:24

Rohingya Villages Destroyed 'To Erase Evidence'

 2018-02-24 09:26:13

Anbang Seizure Whets Buyers' Appetites for Buildings Across U.S.

 2018-02-24 10:04:42