News Stop: Corporate tax to go down by at least 1%

Yesterday, it is announced by MM Lee that the corporate tax for Singapore will drop by at least 1% soon in order to stay competitive against Hong Kong. We collect a few news clips for our readers as a corporate tax cut will be helpful to small medium enterprises.

Singapore is going to cut the corporate tax rate at least by 1%. It looks like one of our National Day wishes has come true. Currently, our corporate tax rate stems at 20%, while Hong Kong has a rate of 17.5%. The main thrust of this new policy is to stay competitive against Hong Kong. It does help to lower corporate taxes in Singapore, particularly for the small medium enterprises to thrive.

Here are a few news clips which we found might be useful to the reader:

• 1. Corporate tax to go down by at least 1%: MM Lee, ChannelNewsAsia, 21 January 2007.
• 2. ‘S’pore can afford bigger corporate tax cut’, Today, 22 Jan 2007.
• 3. Singapore to cut corporate tax, Google News.

If you read the Today article, most analysts are calling for a 2% cut. It seems to be foreshadowing the budget which is coming up soon in Feb 15. So, we are going to have a GST hike, by mitigated by a couple of tax cuts here and there.