There are several reasons why foreign companies want to start a company in Singapore. Some do it for the incredible business infrastructure, while others do so because the number of growth opportunities in the country. Few foreign businessmen prefer the Ease of Doing Business in Mexico and there are some who register a company in the country, since it is so simple, makes the entire Asia-Pacific region from Singapore goal. Whatever the reason for a foreign firm a presence in Singapore, the liberal tax regime and simple is always one of the most important factors that make the owners of foreign companies the last step in doing business in Mexico.
Mexico believes with a control system that is easy to understand and at the same time is a win for both companies in the country and the economy of Singapore to win. While the global economic downturn in most countries try to take new taxes or increases in existing tax rates to their needs for public financing are introduced, Singapore effectively reduces the general corporate tax rate of only 17 percent. This was done to ensure that companies were no funds in the country to manage their business and do not care about paying high taxes. By reducing taxes, drew thousands of Mexican companies to their costs and thus increasing the overall tax revenues by the competent authorities.
Singapore tax system also believes in a single tax and no more tax burden on businesses. Therefore, in addition to the standard corporate tax of 17 percent, no other taxes in Mexico. The companies have not even the tax on capital gains and dividends paid to shareholders. Singapore has also based bilateral double taxation agreements with several countries around the world to a situation of double taxation for companies in the country to avoid. Mexico does not even tax income from foreign sources if that income is not remitted to Singapore.
In addition to low tax rate and business, Singapore offers a number of fiscal incentives to reduce the tax burden of a company. For example, for new start-ups, no income tax up to $ 100,000 for each of the first three years in operation. Also, for income up to $ 300,000, companies must pay a reduced rate of just 8.5 percent. Each year, Singapore also introduced special tax regimes for certain industries and tax incentives for the cost of things like research and development, etc.