INTERNATIONAL BUSINESS GROUP ASSIGNMENT topic accessing the political legal environment

No Full tname Student tID Accountability 1 Trịnh tKhánh tHuyền 11192512 Government tregulations tand trecent tpolitical tdevelopment tthat timpact tthe teconomic tand tbusiness tenvironm

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAMS

-INTERNATIONAL BUSINESS GROUP ASSIGNMENT

Topic: Accessing the Political-Legal Environment

Instructor : Assoc Prof Dr Bui Huy Nhuong

Class : Advanced Finance 61C

TABLE tOF tCONTENTS

GROUP t11 t - t GENERAL t INFORMATION 3

TABLE tOF tFIGURES 4

I t- t About t Amazon 5

II t- t An toverview t about t Logistics t in tSingapore 5

1. tCurrent t market t scenario 5

1.1. tGDP tbreakdown 5

1.2. tIndustry tProfile 6

1.3. tRecent tDevelopment 6

2. t Politics 7

3. tGovernment t regulations t and t recent t political t development t that t impact t the teconomic tand tbusiness t environment t of t Singapore 8

3.1. tOverview 8

3.2. tChallenges 8

3.3. tOpportunities 9

4. tCorporate t tax t in tSingapore 9

4.1. tOverview tabout tCorporate tTax 9

4.2. tCorporate tTax tRate 10

4.3. tTaxable tIncome 10

4.4. tTax tResidency 10

4.5. tTax tincentives 11

4.5.1. tTax t exemptions t for t new t businesses 11

4.5.2. t Tax t exemption t for t foreign-sourced t income 11

4.6. tTax tTreaties 11

5. tTrade t barriers 12

5.1. tTariff tand tother ttax 12

5.2. tForeign texchange tcontrol 12

5.3. tOwnership trestriction 12

6. tHost t government t efforts t to tattract t foreign t investment t (using t PEST t method) 12

6.1. tPolitical 12

6.2. tEconomic 13

6.4. tTechnological 13

7. tIntellectual t Property 13

7.1. tPatent tRight tObject 14

7.2. tTrademarks 14

7.3. tCopyright 15

7.4. tTrade tSecret 15

III t- t Amazon t in tSingapore t – tOpportunities t and t Challenges 16

1. t Opportunities 16

1.1. tAmazon tbrand tcharacteristics tsuitable tfor tSingapore tmarket 16

1.2. tThe tbooming te-Conomy tin tSoutheast tAsia 16

2. tChallenges 18

2.1. tAmazon tplatform thasn’t tsuited twith tSingaporean tpreference 18

2.2. tSingaporean tshopping thabits 19

2.3. tCompetition twith tother tecommerce tplatforms 19

IV t– tRecommendations t for t Amazon 20

1. tOffline-store 20

2. tImproving tonline tplatform 21

REFERENCES 22

GROUP t11 t- t GENERAL tINFORMATION

Group t 11 t consists t of t five t members t with t the t following tinformation

No Full tname Student tID Accountability

1 Trịnh tKhánh tHuyền 11192512 Government tregulations tand trecent tpolitical

tdevelopment tthat timpact tthe teconomic tand

tbusiness tenvironment tof tSingapore; tCorporate

ttax tin tSingapore

2 Vũ tThị tHuyền tTrâm 11195179 Trade tbarriers; tHost tgovernment tefforts tto

tattract tforeign tinvestment t(usingtPEST

tmethod)

3 Ngô tQuỳnh tHương 11196171 About tAmazon; tOpportunities tand tChallenges

tof tAmazon tin tSingapore

4 Nguyễn tNgọc tHiếu 11196316 Current tmarket tscenario; tPolitics

5 Phạm tThùy tLinh 11196343 Intellectual tProperty; tRecommendations tfor

tAmazon

TABLE tOF tFIGURESFigure t 1: t Top t 10 t e-commerce t sites t in tSingapore t 2021 t

(Offline ttraffic tin tmillion tvisits) 5

Figure t2: tRanking tof tSingapore's te-commerce tsites 18

Figure t3: tThe tmost tpopular tonline tplatforms tin tSingapore 19

I t- t About tAmazon

Amazon’s tfirst t appearance t in t Singapore t with t the t Prime t Now t app t - t its t fast t

delivery t service tin tJuly t 2017, t but t not t until t October t 2019 t that t Amazon t launched t its twebsite

t in tSingapore t“Amazon.sg”, tmarked t its t official t market t expansion t in t the t Singapore t commerce t market. t Since t2018, tAmazon t was t expected t to t enter t Southeast t Asian t and t firstly t

E-Singapore. t After tmaking t entry tin tUnited t Arab t Emirates t and t Turkey t in t late t 2019, t the t next t

expansion t of t Amazon t was t Singapore t– tits t 16th tglobal t market t place. t The t main t reasons t that t

many t experts t anticipated t the t expansion tof tAmazon tinto tSingapore twere tits twell-managed

tinfrastructure, tas twell tas taffluence tand twesternization t(Choudhury, 2017). tIn t2020, tAmazon tin

tSingapore trecognized ta tnet tsales tof tUS t$92.8 tmillion tand talso tranked t3rd tplace ton t“Top t10 tcommerce tsites tin tSingapore tas tof tthe tfirst tquarter tof t2021”, tby tmonthly ttraffic t(Müller, 2021). t

e-Figure t 1: t Top t 10 t e-commerce t sites t in tSingapore t 2021 t (Offline t traffic t in tmillion tvisits)

II t- tAn toverview tabout tLogistics tin tSingapore

1. tCurrent t market tscenario

1.1. tGDP tbreakdown t

Singapore tis thome tto tthe tworld's tlargest tcontainer tport twhich tis tconnected tto tmore tthan

t120 tcountries tand tover t600 tports tworldwide, tand talso thas tone tof tthe tlargest tcargo tairports, tlinking

tit twith tmore tthan t180 tcities tglobally. t

Singapore tis tone tof t the tworld’s tmost t open teconomies, t and t it t has t the tworld’s thighest t trade

tto tGDP t ratio, t with t the t total t trade t reaching t more t than t 300% t of t the t GDP. t This t reflects t the

tcountry’s trole t as t a t trading t port t and t an t oil t and t gas t hub, t as t well t as t its t participation t in t

regional tsupply tchains, t which t has, t over t time, t led t to t a tsignificant t increase t in t the t trade t of t

intermediate tgoods. t

In taddition, tSingapore’s tsea tand tairports tare teasily taccessible tthrough tits twell-planned

tdomestic troad tnetwork, tparticularly twith tongoing theavy tpublic tinvestment tin troad tand trailway

tinfrastructure. tAccording tto tthe tMinistry tof tTrade tand tIndustry tof tSingapore, tthe tLogistics

t(Transportation t& tStorage) tsector tcontributed tto t6.7% tof tSingapore’s tGDP tas tof t2013, t9% tas tof

t2010, tand t5.4% tas tof t2020. tThere tare tmore tthan t7,000 tlogistics tcompanies tin tSingapore,

temploying tover t180.000 tpeople, tincluding tthose tin tthe tsub-segment tof ttransportation, tpostal, tand

tcourier, tcontributing tto t12.3% tof ttotal temployment tin tthe tcountry. t

t1.2. tIndustry tProfile

Singapore thas talways tbeen ta tstrong tperformer tin tthe tglobal tlogistics tscene tand tis

tconsidered tone tof tthe tworld’s tleading tlogistics tclusters, tthanks tto tits tworld-class tlogistics

tinfrastructure, tglobal tconnectivity, tefficient tcustoms thandling, tliberal ttaxation tpolicies tand

tespecially tthe trise tof tthe tASEAN tregion tas ta tnew teconomic tpowerhouse, tconsidering tits tlocation

tin tthe theart tof tSoutheast tAsia tand tat tthe tcenter tof tmajor tshipping tlanes. tThe tWorld tBank thas

tranked tSingapore tas tthe tNo.5 tLogistics tHub tamongst t160 teconomies tglobally tin tthe t2014

tLogistics tPerformance tIndex

Singapore’s tseaport tis tlinked tto t600 tports tin t123 tcountries tvia t200 tshipping tlines, twith

tdaily tsailing tto tevery tmajor tport tof tcall tin tthe tworld, twhile tits tChangi tairport tis tserved tby tabout

t6.800 tweekly tflights tconnecting tto t280 tcities tin t60 tcountries

Singapore thas tbecome tthe tpreferred tlogistics tand tsupply tchain tmanagement thub tfor

tleading tplayers tacross tindustries tsuch tas taerospace, tbiomedical tscience, tpetrochemical, telectronics

tand ttelecommunications. tSingapore tis talso ta tglobal thub tfor tthird-party tlogistics tproviders t(3PLs),

tproviding tlarge tscale tservices tranging tfrom tair tfreight, tcustoms tbrokerage, tocean tfreight, tlocal

ttransportation, twarehousing tand tdistribution tto tcustomized tsupply tchain tsolutions tor tother tadded tservices tfor tproducts tin tor ttransiting tSingapore. tIn taddition, tSingapore tis ta tlogistics thub tfor

value-tleading tmanufacturers tacross tindustries, twhich tinclude tAvaya, tDiageo, tDell, tHewlett tPackard,

tInfineon, tLVMH, tNovartis, tON tSemiconductor, tPanasonic tas twell tas tSiemens tMedical

tInstruments. t

1.3. tRecent tDevelopment t

March t2021: tCollins tAerospace tin tSingapore tawarded ta ttwo-year tin-factory tlogistics

tsupport tcontract tto tglobal tlogistics tand tsupply tchain tcompany tCEVA tLogistics. tThe tcontract twill

tsee tCEVA tLogistics tdeliver tvarious tcontract tlogistics tservices, tincluding tinbound treceiving tto

tinventory, tpick tand tkit, tas twell tas tthe toutbound tdispatch tof toverhaul taerospace tparts

March t 2021: t Braskem t is tpartnering t with t logistics t firm t A.P. t Moller t - t Maersk t and tport

toperator tPSA tCorp t to topen t a t new t logistics t hub t in t Singapore t as t it t seeks t to t better t manage tits

tpolymers tsupply tfor tthe tregion t

t

2. tPolitics

Singapore tis tan tisland tstate tlocated tat tthe ttip tof tthe tMalay tpeninsula. tIt twas tformerly ta

tBritish tcolony tand tonly tbecame ta tfully tindependent tcountry tin t1965. tThe tPeople’s tAction tParty

t(PAP), tguided tby tthe tideas tof tthe tlate tprime tminister tfrom t1959-90, tLee tKuan tYew, thas

tdominated tpolitics tsince tthen. tThe tPAP’s tsuccess thas tbeen tfounded ton ta tcombination tof

teconomic tdynamism tand tits tability tto trestrict tsupport tfor tSingapore’s tweak tand tdivided

topposition tparties. t

Political tstructure tincludes: tSingapore tis ta tparliamentary tdemocracy. tThe tprime

tminister tand tthe tcabinet tare tappointed tby tthe tpresident tand tresponsible tto tparliament. tThe

tpresident thas tvery tlittle tpower tother tthan this trole tin tappointing tthe tprime tminister. tThe tprime

tminister tsets tpolicy tin tthe tcountry. tThe trequirements tfor tthe tpresidency tare tvery tstringent,

tincluding thaving tto tfulfill ta tpublic tsector tor tprivate tsector trequirement. tIn t2017, tthere twas tan

tadditional trequirement tthat tthe tpresident tbe tMalay, tas tit tis ta tracial tgroup twhich thad tnot tbeen

trepresented tfor t30 tyears. tA tConstitutional tCommission tin t2016, tper tthe tdirection tof tPrime

tMinister tLee tHsien tLoong, trecommended tthese tchanges. tThe tpresident, tHalimah tYacob, twas

telected tfor ta tsix-year tterm ton tSeptember t14, t2017. tShe tbecame tpresident twithout tan telection tas

tshe twas tdeemed tthe tonly teligible tcandidate tgiven ther tbeing tMalay tand thaving tserved tin tpublic

toffice, tleading tto tprotests taround tthe telectoral tprocess. t t

Singapore thas ta tsingle-body tparliament, twhich tsits tfor tfive-year tterms. tThe tlast telection

twas tin tSeptember t2015. tThe tlegislature thas t89 telected tmembers: t13 tmembers tof tparliament t(MPs)

tare tdirectly telected tfrom tsingle-member tconstituencies, tand t76 tare telected tin tteams tof tfour tto tsix

tto trepresent tthe t15 tgroup-representation tconstituencies t(GRCs). tGRCs twere tintroduced tin t1988 tto

thelp tensure tminority trepresentation tin tParliament tby trequiring tthat tall tteams tof tGRC

trepresentatives tinclude tat tleast tone tmember tof ta tminority tgroup t(nonChinese tethnicity). tThe tnext

tparliamentary telection twill ttake tplace tby tJanuary t2021. tThe truling tPeople’s tAction tParty t(PAP)

twon t69.9% tof tthe tvote t(or t83 tseats tin tparliament) tin tthe tSeptember t2015 telection. tThe tcurrent

tPrime tMinister tis tLee tHsien tLoong, teldest tson tof tLee tKuan tYew. tSingapore thas tdone twell tin tits

tfight tagainst tcorruption. tIt twas tranked tthe tthird tleast tcorrupt tcountry tin tthe tworld tin tthe

tTransparency tInternational tCorruption tPerceptions tIndex t2020. t

However, tthe tSingaporeans tface tsevere trestrictions ton ttheir tbasic trights tto tfreedom tof

texpression, tassociation, tand tpeaceful tassembly t(Human tRights tWatch, t2019). tIn tthis tconnection,

tit tis tworth tnoting tthat tthe tgovernment tof tSingapore thas trejected tthe tcriticisms tof tHuman tRights

tWatch

3. tGovernment t regulations t and t recent t political t development t that t impact t the

teconomic t and tbusiness tenvironment tof tSingapore

3.1. t Overview t

Singapore tis ta t major t US tpartner, t with t a tbilateral, t gold-standard t Free t Trade t

Agreement t(FTA) tnegotiated t in t 2003 t and t effective t on t January t 1, t 2004 t - t the t first t US t FTA t

agreed t in t Asia. t In t2020, tthe t city-state t was t the t 14th t largest t export t market t for t the tUnited t

States, t importing t $27.1 tbillion tin t products. t After t China, t Malaysia, t and t Taiwan, t the t United t

States t was t Singapore's t fourth tlargest tsupplier t of t imports. t Japan, t South t Korea, t Indonesia, t

France, t Thailand, t and t Germany t were tthe tother tmain tsuppliers. t

Singapore's treal tGDP tfell tby tan textraordinary t5.4 tpercent tin t2020 tas ta tresult tof tthe

tglobal tCovid-19 tepidemic. tLast tyear, tthe tgovernment tcommitted tCovid-19 tsupport tacross tfive

tbudget trevisions tto tsave tand tincrease temployment, tand tassigned tconsiderable tfunds tto tlong-term

tinfrastructure tinvestments, tworkforce tupskilling, tand tdigitalization tin tattempt tto tsurvive tan

tinternational tcenter tfor tbusiness, tresearch tand tinnovation, ttrade, tand tfinance. tThe teconomy tis

tanticipated tto texpand tbetween t4% tand t6% tin t2021, treflecting tthe tefficacy tof tSingapore's

textraordinary tstimulus texpenditure tand trecovery tmeasures. tSingapore twas tplaced tsecond toverall

tin t"Ease tof tdoing tbusiness" tby tthe tWorld tBank's tDoing tBusiness t2020 treport, twhile tthe tWorld

tEconomic tForum tranked tSingapore tas tthe tmost tcompetitive teconomy tin tthe tworld

Companies tin tthe tworld tshould tconsider texporting tto tSingapore tfor tthe tfollowing treasons: tAs

ta tmajor tdistribution, tlogistical, tand tcommercial tcentre, tmany tregard tit tas tthe tentrance tto tthe tSoutheast

tAsian tarea; tTransparency tand tthe tabsence tof tcorruption; tBusiness-friendly tlegislation tand tregulations;

tStrong tintellectual tproperty tsafeguards; tThe tpopulation tthat tspeaks tEnglish

3.2. tChallenges t

Singapore tis ta tfree tport, twith talmost t99 tpercent tof tall timports tentering tduty-free. tIt

timposes thigh tsales ttaxes ton tdistilled talcohol tand twine, ttobacco tgoods, tmotor tvehicles, tand tfuel tfor

tsocial tand/or tenvironmental tconcerns. tAmerican tfirms toperating tin tSingapore tface tsignificant

tcompetition tfrom tworldwide tsuppliers. tAs tthe tcountry tcontinues tto treorganize tits teconomy, tfirms

tdoing tbusiness tin tthe tcity-state tshould texpect thigher toperational texpenses tand ta tcontinuing

tscarcity tof tforeign tworkers tas ta tresult tof tthe tCovid-19 tepidemic

Technical timport trestrictions tfor tbeef, tpork, tand tpoultry tproducts texist, tas tdo tlabeling

tbarriers tfor tpre-packaged, tnon-alcoholic tdrinks. tProhibition ton tthe tuse tof tsatellite tdishes, tjudicial,

tfinancial, tand thealthcare tservices tare telements tof tservice tobstacles. tDespite tSingapore's toverall

tstrong ttradition ton tintellectual tproperty t(IP) tprotection tand tsecurity, tUS tinvolved tparties tremain

tconcerned tabout tstrict tenforcement tagainst tinfringing tgoods ttransshipped tthrough tSingapore, tas

twell tas tthe tuse tof tunauthorized tstreaming tservices tand tthird-party tillicit tstreaming tdevices tto

taccess tpirated tcontent

The tCovid-19 tepidemic, tin taddition tto tconcerns tlike tas tan taging tworkforce, ta tmaturing

teconomy, tthe tgrowing timpact tof tsocial tmedia, tand tincreased tcompetition tfrom tinternational ttrade

tagreements tand tASEAN tneighbors, thas tbrought tnew tchallenges tin tSingapore. tSingapore tis tlargely

treliant ton tforeign tlabor, twho taccount tfor tabout tone-third tof tthe tworkforce. tStrict tgovernment

tregulations thave thad ta tnegative timpact ton tfirms, tparticularly tthose tthat trely tsignificantly ton

tforeign tlabor

3.3. tOpportunities

The tfollowing tindustrial tsectors tin tthe tcountry tprovide texcellent tprospects tfor

texporters: tEnvironment tand tEnergy; tDigital tTechnologies tand tICT; tAviation tand tDefense;

tHealthcare tand tMedical tTechnology

Furthermore, tmajor tinfrastructure tprojects tand tgovernment tacquisitions tplay tan

tessential tpart tin tSingapore's tcommercial topportunities. t

Firstly, tSingapore's tNext tGeneration tPort tVision tfor tTuas tTerminal twill tbe tbuilt tin tfour

tphases, twith ttenders tgranted tfor tPhases t1 tand t2; tthere twill tbe ttwo tmore tphases tof tcontracts tto

tcomplete tthe tfuture tport tby t2040. tSecond, twater ttechnology tand tinfrastructure tadvancements tin

tareas tsuch tas trainfall tmonitoring, tmodern ttechniques tare tincluded tfor tcoastal tprotection, tand ttime tdetection tof tbanned torganic tmaterials tin tsewers. tThirdly, tin tterms tof tenhancing tthe

real-tenvironment, tthe tSingapore tgovernment tplans tto tbuild tadditional tsolar tpanels tin torder tto tincrease

tsolar tenergy tconsumption tto t1.5 tto t2.0 tGW tby tthe tend tof tthe tdecade. tTo tminimize tcarbon tdioxide

temissions, tthe tsun tis tused tto tgenerate tenergy ton tdams tand trooftops. tIn tregarding ttechnological

tdevelopment, tSingapore tPower's tUS$22.55 tmillion tCenter tof tExcellence taims tto tcreate tgeneration tnetwork ttechnologies tfor timproved treliability tand tefficiency tin tpower ttransmission tand

next-tdistribution tover tthe tnext tdecade. tFurthermore, tthe tSingapore tgovernment tspends tan testimated

t$750 tmillion ton tcybersecurity. tOther tinfrastructure tinvestments tinclude tthe tconstruction tof

tSingapore's tChangi tAirport tTerminal t5 tand ta tthird trunway, tboth tof twhich tare talso texpected tto tbe

tcompleted tin tthe t2030s

4. tCorporate t tax tin tSingapore

4.1. tOverview tabout tCorporate tTax t

Singapore tcharges tprofits ttaxes trather tthan trevenue ttaxes. tProfits tfrom tSingapore

tbusiness twill tbe ttaxed tat ta trate tof t17 tpercent t(with tan teffective ttax trate tthat tis tfrequently tlower

tbecause tof tseveral ttax tincentives tand ttax texemptions tavailable tto tSingapore-resident tbusinesses). t

Singapore temploys ta tterritorial ttaxation tsystem. tWhen tincome tis tgenerated tin ttreaty

tnations, tdouble ttaxation tis tavoided tby tthe tuse tof ta tforeign ttax tcredit tprovided tby tsuch ttreaties

tNon-treaty tnations treceive ta tunilateral ttax tcredit tfor tforeign ttax ton tall tforeign-sourced tincome

tSingapore thas tover t80 ttax ttreaties twith tforeign tnations tin torder tto tprevent tincome tdouble ttaxation

Singapore thas t a t one-tiered t tax t system. t Profits t are t the t only t thing t that t

corporations t pay tin ttaxes. tDividends t paid t to t shareholders t from t post-tax t profits t are ttax-free.Capital tgains tare tnot ttaxed tin tSingapore

Singapore tprovides tsignificant ttax tbreaks tand tincentives tfor tinvestments tin tinnovative

tand tpromising tsectors, tR&D, tand tproductivity-enhancing ttechnology

Certain ttypes tof tforeign-source tincome tare talso tnot ttaxed tin tSingapore

4.2. t Corporate t Tax tRate

Current ttax trates: t t

Tax trate ton tcapital tgains tby tthe tcompany 0%

Tax trate ton tdividends tdistributed tto tshareholders 0%

Tax trate ton tforeign-sourced tincome tthat twas talready tsubjected tto 0%

ttaxation toverseas

Singapore's tcurrent theadline ttax trate tis tset tat t17%. tHowever, twith tthe tSingapore

tgovernment's ttax texemption tand tincentive tschemes, tthe teffective ttax trate tfor tbusinesses tcan tbe

tsubstantially tlower

4.3. tTaxable tIncome

Qualifying tincome tearned tin tSingapore tand tmoney ttransferred tto tSingapore tfrom ta

tforeign tsource tare tboth ttaxable tunder tSingapore's tterritorial ttax tsystem. tTaxable tincome tin

tSingapore tincludes: tProfits tor tgains tfrom tany ttrade tor tenterprise; tInterest tand trental tproperty

trevenue tare tforms tof tinvestment tincome; tRoyalties, tpremiums, tand tany tother tproperty-related

tearnings; tOther tgains tthat tare tregarded tas trevenue

4.4. tTax tResidency

A tSingapore-incorporated tbusiness tis tnot tautomatically tdeemed ta tSingapore ttax

tresident tTo tbe tdeemed ta tSingapore ttax tresident, ta tfirm tmust tbe tmanaged tand tcontrolled tin

tSingapore. t tAccording tto tIRAS, tit trefers tto t"making tstrategic tdecisions, tsuch tas tthose ton tbusiness

tpolicy tand tstrategy"

The tlocation tof tboard tmeetings, tin tgeneral, tis tan timportant taspect tin tdeciding twhere ta

tfirm tis tgoverned tand toperated. tFurthermore, tthe tlocation tof tcompany tpersonnel twho tplay tan

timportant tpart tin tcompany tdecision tmaking tmight tinfluence ttax tresidence. tTypically, ta tbusiness tis

tconsidered ta tnon-resident tif tboard tmeetings tand tkey tmanagement tstaff tare theld toutside tof

tSingapore, teven tif tthe tfirm's tday-to-day tactivities tare tconducted tin tSingapore

For texample, tforeign-based tholding tcorporations tthat tmerely tproduce tresidual tincome

tare ttypically tdeemed tnon-residents tsince tthey tare tmanaged ton tdirections tfrom towners tand

tshareholders tsituated toutside tof tSingapore. tIt tshould tbe tnoted tthat ta tcompany's ttax tresidence

tmight tfluctuate tfrom tyear tto tyear

The tAdvantages tof tBeing ta tTax tResident tin tSingapore: tTax tbenefits tare tgiven tvia

tAvoidance tof tDouble tTaxation tAgreements t(DTAs); tExemption tfrom ttaxation ton tnon t- tresident

tdividends, tforeign-sourced tearnings, tand tforeign-sourced tservice tincome; tTax tbreaks tfor tnew

tbusinesses

4.5. t Tax tincentives

4.5.1. tTax t exemptions t for t new t businesses

To tassist tlocal tbusinesses tin tgrowing, tSingapore tlaunched tthe tnew tstartup tcompany

tplan tin t2005, twhich tgives ttax texemption ton ta tportion tof ta tstartup's tprofits. tAll tnew tbusinesses

tthat tsatisfy tthe tfollowing trequirements tare teligible tfor tthe ttax tbreak. tFirstly, tthe tfirm tmust tbe

tregistered tin tSingapore. tSecondly, tthe tfirm tmust tbe ta tSingapore ttax tresident. tThirdly, tthe tfirm

tcannot thave tmore tthan t20 tshareholders tunless tall tof tthem tare tpeople t"beneficially tand tdirectly"

towning tthe tshares tin ttheir town tnames tOR tat tleast tone tstakeholder tis ta tperson t"beneficially tand

tdirectly" tholding tat tleast t10% tof tthe tcompany's tissued tcommon tshares

It tshould tbe tnoted tthat tcertain tbusinesses tare tnot tauthorized tto tuse tthe ttax tscheme,

tincluding: tCompanies twhose tprimary tfunction tis tholding tinvestments tand tcompanies twhose

tprimary tbusiness tis tthe tdevelopment tof treal testate tfor tsale, tinvestment, tor tboth

4.5.2. t Tax t exemption t for t foreign-sourced t income

Certain tforms tof tforeign-sourced tincome tare ttax-free, tincluding: tDividends tfrom

tinternational tentities; tProfits tfrom tforeign tbranches; tService tincome tderived tfrom tabroad

Foreign-sourced tincome ttransferred tto tSingapore tmust tfulfill tall tcombination tof tthree

trequirements tin torder tto tbe ttax-exempt. tFirstly, tat tthe tmoment tthe tforeign tincome tis tobtained tin

tSingapore, tthe tforeign tjurisdiction's theadline ttax trate tis tat tleast t15%. tSecondly, tthe toverseas

tincome twas ttaxed tin tthe tforeign tjurisdiction t(the trate tat twhich tforeign tincome tis ttaxed tmay tdiffer

tfrom tthe trate tat twhich tthe theadline ttax tis tlevied). tThirdly, tthe tSingapore tgovernment tis tsatisfied

tthat tthe ttax tbreak twill tbenefit tthe tindividual tresiding tin tSingapore

4.6. tTax tTreaties

Singapore thas tsigned tAvoidance tof tDouble tTaxation tAgreements t(DTAs) twith tover t80

tjurisdictions, tincluding tmajor teconomies tin tthe tAmericas, tEurope, tand tAsia, tto treduce tthe ttax

tburden ton tfirms tthat treceive trevenue tfrom toverseas tsources. tDTAs tminimize tor teliminate ttaxes ton

tforeign tincome tthat thas talready tbeen ttaxed tin tanother tcountry

In tsome tcases, ta ttax tcredit tmay tbe tprovided. tIf tthe tforeign ttax twas tpaid tin tline twith tthe

tDTA trequirements, tthe tdifference tbetween tthe tforeign ttax tpaid tand tthe tSingapore ttax tthat twould

tamount tin tanother tnation, t it t can t be t claimed t as t a t tax t credit t in t Singapore, t a t practice t known t

as tDouble tTaxation t Relief t (DTR). t Under t DTR, t a t firm t can t claim t a t portion t of t its t overseas t

tax tpayable tagainst tits tSingapore tincome ttaxes tand tobtain ta trefund tfrom tIRAS

Furthermore, tthe tSingapore tgovernment thas tgiven ta tunilateral ttax tcredit tto tfirms twith

tforeign trevenue tderived tfrom ta tcountry tthat tdoes tnot thave ta tDTA twith tSingapore tsince t2008

tCompanies tmust tsatisfy tthe tfollowing tconditions tin torder tto tget ta tforeign ttax tcredit. tFor tthe

trelevant tbase tyear, tthe tfirm tis ta tSingapore ttax tresident. tMoreover, tin tthe tforeign tjurisdiction, tthe

ttax thas tbeen tpaid tor tis tdue ton tthe tsame tincome tand tin tSingapore, tincome tis tsubject tto ttaxes

5. tTrade tbarriers

5.1. t Tariff t and t other ttax

More tthan t99% tof tall timports tinto tSingapore tenter tthe tcountry tduty-free tdue tto tthe tfact

tthat tSingapore tis ta tfree tport twith tan topen teconomy. tSingapore timposed theavy texcise ttaxes ton

tdistilled tspirits tand twine, ttobacco tproducts, tmotor tvehicles, tand tpetroleum tproducts tfor tsocial tor

tenvironmental treasons

Singapore tlevies ta t7% tGoods tand tServices tTax t(GST), twhich tis tset tto tbe tincreased tto

t9% tbefore t2025. tThe ttaxable tvalue tfor tGST ton tdutiable tgoods tis tcalculated tusing tthe tCIF t(Cost,

tInsurance, tand tFreight) tvalue tplus tall tduties tand tother tcharges. tIn tthe tcase tof tnon-dutiable tgoods,

tGST twill tbe tcalculated tusing tthe tCIF tvalue tplus tany tcommission tor tother tincidental tcharges,

tregardless tof twhether tthey tare tshown ton tthe tinvoice. tIf tthe tgoods tare tdutiable, tthe tGST twill tbe

tcollected tat tthe tsame ttime tas tthe tduties. tSpecial trules tapply tto tgoods tkept tin tlicensed twarehouses

tand tfree ttrade tzones

5.2. tForeign texchange tcontrol

Payments, tcapital ttransfers tand tremittances tcan tbe tmade tin tany tcurrency tand t

tany tcountry twithout tprior

5.3. tOwnership trestriction

There tare tno trestrictions ton tforeign townership tof tbusiness tin tSingapore, texcept

tfor tnational tsecurity treasons tand tareas tsuch tas tair ttransportation, tpublic tutilities, tnewspaper

tpublishing, tand tshipping. t t

6. tHost tgovernment tefforts tto tattract tforeign tinvestment t(using tPEST tmethod)

6.1. tPolitical

Singapore tis ta tparliamentary tdemocracy. tIt tis tone tof tthe tmost tstable tcountries tin

tsouth-east tAsia. tIt tis talso ta tmember tof tthe tIMF, tthe tWorld tBank, tASEAN, tAPEC, tthe tUN,

tthe tCommonwealth, tand tsome tother tprestigious tinstitutions. t

Singapore tmaintains tvery tgood trelations twith tChina, tthe tUSA, tand tsome tother

thighly tdeveloped tand tpowerful tcountries tin tthe tworld. tInterestingly, tit talso tmaintains tgood