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Doing Business in Singapore VS Ireland

 

Singapore or Ireland: A hard choice for investors

Ireland offers many benefits to entrepreneurs looking to set up corporate headquarters within the European Union. Many of the world’s most successful companies have chosen Ireland as a destination for their business because of the country’s pro-business environment. This includes leading technology companies such as Google and Facebook and leading pharmaceutical companies such as Actavis and Abbott. The Irish economy is particularly reliant on trade, with the value of exports and imports accounting for over 200 per cent of the country’s overall GDP. Many companies choose to setup business in Ireland because of the competitive corporate tax rates as well as a comprehensive tax treaty network, the advanced infrastructure and the country’s dynamic and highly educated workforce.

 

Most Attractive Countries To Access The European Market

Ireland is considered one of the most attractive countries for international companies to access the European market. The 2015 World Bank “Doing Business” report has ranked Ireland within the top 10% of the 189 countries surveyed. Ireland’s economy is expected to grow in 2017 by 3.4% by the European Commission. The Commission says that domestic demand and an improvement in labour market will be the key driving forces behind the country’s economic growth. Ireland has one of the most attractive tax regimes in Europe which is transparent and fully complies with the OECD guidelines. The country’s corporation tax stands at 12.5% and applies to all Irish corporate trading profit. Under a new incentive recently introduced in the budget 2016, companies involved in Research and Development can avail of a corporation tax rate of 6.25% through this new “knowledge box” scheme. According to the Global Competitiveness Index reports, Ireland has posted numbers that prove there has been a steep recovery in its economy since the last recession in 2009. Ireland’s economy has been the best performing in the European Union for the last three years. Ireland has a strong focus on education and an education system that ranks in the top ten in the world. Over one million people in Ireland are in full time education. The country’s investment in education and up skilling delivers continuous results and secures its reputation as a highly attractive location for business. Ireland’s economy has however, been experiencing uncertainty post-Brexit. Being a small country with 30 per cent of its population dependent on food and drink exports to Britain due to the existing free trade agreement, the country’s most important industry is faced with economic risks.

 

One Of The World’s Best Business Locations

A small island city-state located in the heart of Southeast Asia, Singapore has an area of about 685.4 sq km – slightly larger than 3.5 times the size of Washington DC. However, its small physical size belies its great economic strength and resilience. Despite the inherent limitations of a small domestic economy and lack of natural resources, Singapore has established itself as one of the world’s top trading nations, and is consistently voted as one of the world’s best business locations. One of the key benefits of doing business in Singapore include attractive tax rates. Effective tax rates as one of the lowest in the world and the general “business friendliness” of Singapore are the two important factors contributing to the economic growth and foreign investment into the city-state. There is no capital gains tax imposed in Singapore.

 

Southeast Asia’s Financial And High-Tech Hub

Singapore has over the years has moved to the number two spot in the World Bank’s Global Survey Rankings for ease of doing business in 2017. The United Kingdom ranks seventh. Singapore enjoys a highly developed and successful free market economy with an open and corruption free environment. It also boasts a capita GDP higher than most other developed countries. Singapore has a conducive business environment that is strongly underscored by the political stability resulting in a cohesive pro-business policy direction. The country has embraced liberalisation, particularly, for trade, finance and trade as a means for economic prosperity. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia’s financial and high-tech hub.