One of the best places to set up a business enterprise in the world today is Singapore. This is due to the swift economic growth and stability in the country today.
However, before setting up an enterprise here, you have to know about tax return Singapore. In this article, we are going to put you through everything that you need to know about the tax system in Singapore. This also includes the tax policy of the country, fiscal policy, and the various types of tax imposed by the government of the country.
Tax Policy in Singapore
Ever wondered why Singapore remains a vibrant nation economic wise, and why people choose to set up their company here? This is because of how the tax collected by the government of the country is being put to use. It is done by using the tax to fund important government operations that will be of benefit to the people of the country. Some of these governmental operations are aimed at meeting the economic and social growth of the community.
Fiscal Policy in Singapore
Fiscal policy refers to how the tax collected is being used to influence the economic stability and growth of the country. Fiscal policy of Singapore is aimed at the following:
- Promotion of a Non-Inflationary Economy: Making sure that the economy of the country is not affected by inflation is one of the objectives of fiscal policy in Singapore. With this, it is compulsory that the economy of the country keeps growing, or the already stable economy is being maintained.
- Keeping a Balanced Budget: Another important aim of fiscal policy in Singapore is to make sure that a balanced budget is being kept. This is done by ensuring that expenditure isn’t more than the revenue, with taxation being a part of the country’s revenue.
- Ensuring Successful Government Operation: Fiscal policy is also used to ensure that government operations and projects are successfully completed as and when due.
Types of Taxation in Singapore
Taxation in Singapore is a very important part of government revenue. Tax revenue of the country is as much as 85% of the total revenue of the country. There are various taxes imposed in Singapore, and they include:
- Tax on Income: This is the tax imposed on the income or earning of a company registered in Singapore or an individual.
- Tax on Property: This tax is imposed on property owners. The value of a property tax depends on the value of the property, and also the amount collected by the owner on rent.
- Tax on Vehicles: This tax is imposed on any vehicle owner. The aim of this tax is to reduce the congestion on the roads.
- Tax on Goods and Services: This tax is imposed on goods bought and services offered. It can otherwise be called consumption tax.
- Tax on Lottery: This tax is imposed on all kinds of betting and casinos.
- Tax on Import and Export: Tax levied on the importation and exportation of goods in and out of the country.
Make sure you understand all about tax return Singapore before setting up your company in The Lion City.
