Is Singapore really then 5th worst tax haven in the world?
A Singapore Ministry of Finance (MOF) spokesman said: “Singapore’s tax policies are designed to support substantive economic activities in order to create skilled jobs and build new and enduring capabilities in Singapore.”We do not condone any tax evasion activities or actions aimed at base erosion and profit shifting (Beps). Singapore is able to keep the headline corporate tax rate competitive at 17 per cent because we are fiscally prudent and have a diversified tax base.”
Beps includes booking profits in a nation with low corporate tax to avoid higher taxes where the business mainly operates.
Singapore’s corporate tax rate of 17 per cent is among the lowest in the world. If United States President-elect Donald Trump has his way, the US corporate tax rate will be slashed from 35 per cent to 15 per cent. As tax havens generally have low taxes, Singapore is often viewed as a tax haven.