Differences of tax systems between Singapore and China.

Singapore has always been known for its economic development and social stability, and is one of the four major financial centers in the world. A stable political environment, sound laws and regulations and strategic position in the Asia-Pacific region make Singapore an ideal place to create wealth. With a good business environment, there are many development opportunities for enterprises to expand Singapore's economic market. At the same time, the Singapore government is very pro-business and has introduced many preferential tax policies with high efficiency, thus attracting global investors to register Singapore companies in Singapore and expand their business territory. Many rich people like to immigrate to Singapore to invest, one of the main reasons is its low tax.

Characteristics of Singapore's tax revenue

1, single tax system

The United States, China and other countries have many taxes and adopt the principle of global taxation. Singapore, on the other hand, has few taxes and low tax rate, and adopts the principle of territorial taxation, and it is a single tax system. For example, after a Singapore company pays income tax, the dividends received by its shareholders are tax-free in Singapore.

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2. Low tax rate

The corporate income tax rate in Singapore is 0- 17% (25% in China), while the personal income tax rate in Singapore is 22% (45% in China), and there are a series of tax incentives.

3. tax exemption

In Singapore, capital gains, dividends or income obtained from overseas are tax-free. There is no inheritance tax in Singapore, and assets acquired by inheritance or gift are tax-free. If the source of funds is strictly explained, the Singapore Immigration Bureau has only a general understanding of the "first bucket of gold" of immigrant applicants. Assets acquired through inheritance or gift are exempt from tax.

4. Exemption from double taxation

Singapore has reached double taxation agreements with more than 70 countries around the world, including Japan, China and Britain. Companies and individuals who benefit from foreign income and assets are taxed only once. The double taxation agreement stipulates the right to tax certain cross-border income between Singapore and treaty countries, which effectively avoids double taxation. The same income can enjoy low tax or even tax exemption in Singapore, and it will be taxed as high as 20%-35% in other countries.