Taxes in some countries are used merely as revenue for government spending. But in some countries, they are used to promote a thriving economy. Singapore is in the second category because Singapore taxes are used as an incentive for individuals and businesses to locate in the country. Singapore has successfully managed its tax rates in a way that enabled it to get through the recession without massive debt and deficits. Taxes did not have to be increased and the country came out of the recession with a large foreign reserves account.

Many countries around the world now face enormous budget deficits leading to draconian cuts in government spending,Louboutin Chaussures. Only recently emerging from the recession places like the European Union and the United States are dealing with a new kind of economic turmoil. Everyone has seen the riots in the streets of Greece and France. One country you did not see is Singapore,Louboutin Pas Cher, and one reason is that Singapore taxes are low and were kept low. The tax structure promoted business growth and that means Singapore did exceptionally well during the crisis and does not need to rely on austerity measures to bring its budget back in balance.

The KPMG Internationals 2010 Individual Income Tax and Social Security Rate Survey reports that Singapore taxes are some of the lowest in the Asia-Pacific region. KPMG is a network of businesses that do audits, taxes and business advising. Both the business and individual tax rates are low and that is exactly what Singapore hopes to maintain. When people and businesses can retain more of their money, its good for the economy.

The tax rate for companies making less than S$300,000 is under 9%,Christian Louboutin Pas Cher. Companies that make more than that are paying no more than 17% in taxes. Individuals making under S$320,Related articles:

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,000 are taxed anywhere from 0% to 20%. Only those earning over S$320,000 pay the top tax rate of 20%. Low tax rates are known to stimulate economic growth because they encourage more business investment and more consumer spending. In other parts of the world, the story is very different. The UK has recently increased the VAT tax on businesses. The average global personal tax increase was .3% last year but for the European Union it was ,Related articles:

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.4%.

When looking at Singapore corporate taxes, you will also find special rates to promote new startups. One of these special rates is 0% on net profits up to S$100,000 for each of the first 3 years after setup. There are also special tax rates for particular types of businesses such as clean energy that are meant to serve as incentives. With these kinds of taxes,Christian Louboutin, it is no surprise that Singapore has experienced growth while other countries contracted.

For individuals there is even more astonishing news,Louboutin Chaussure. There are no Singapore taxes on capital gains, dividends, or estates. The individual tax rates are as important as the corporate tax rates because low taxes attract entrepreneurs, business executives and other professionals who can bring their business expertise to the region. The taxes in Singapore are also an excellent recruiting tool for businesses trying to hire the best staff for their operations,Christian Louboutin Soldes. So the bottom line is this: if you are looking for a low tax, high growth area for your business then Singapore is it.