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Doing Business in Singapore VS Switzerland
Top Five For Infrastructure In the World
Switzerland is surrounded by Europe’s major economies: Germany, France, Italy, and Austria. It’s right in the heart of Europe’s most densely populated area. And getting around the country is simple, too: According to the World Economic Forum Global Competitiveness Report 2014 – 2015, Switzerland is in the top five for infrastructure; its highways, roads, and public transportation are among the best in the world. The Swiss government operates much like one of its famous chronometer watches. It has a stated goal of treating companies and potential investors like customers. Advisors are readily available to guide business people through the process of making a move there. Switzerland offers well-developed infrastructures, as well as a competitive business environment. The Swiss market is a good testing ground for the introduction of new high technology and spends the most capital in the world in IT. Switzerland is also one of the world’s most advanced countries in research and development. Tourism is also a key economic sector, generating 6% of the Swiss gross domestic product.
Friendliest Tax Systems
Switzerland presents one of the friendliest tax systems in the world. Many tax incentives are offered on both federal as well as cantonal level in Switzerland, in order to attract companies to establish operations and invest in their jurisdictions. In some cantons new investors can profit for a period of up to ten years of taxes free business. This possibility, of being able to benefit from partial or full corporate income tax breaks for up to 10 years is also possible at a federal level. Foreign nationals are permitted to conduct business in Switzerland, and are subject to the Swiss labour laws. Private persons from foreign countries who invest in Switzerland and who wish to manage a business, as well as managers of foreign companies, are generally granted a work and resident permit, particularly if high-value jobs are created. The immigration procedures to be followed and the required permit depend on whether the persons are EU nationals or citizens of a country outside the EU. The protection of intellectual property rights is well developed in Switzerland. For internationally active companies, worldwide protection can be achieved through a single entry. Switzerland’s education system ranks among the best in the world and produces a well-qualified workforce at all levels. As a result of the high quality education system and the multicultural society, a large part of the population is fluent in multiple languages.
Singapore: A Younger State With More Opportunities for Investors
On the other hand, a relatively young state having gained independence in 1965, Singapore has quickly become famously safe, orderly, green and clean, whilst boasting an enviable public transport system and an exemplary educational system. Prudent economic management, low taxes and first-class infrastructure all make it attractive for investment. According to the Singapore Economic Development Board Singapore is ranked as the world’s easiest place to do business, the most open economy for international trade and investment, the best business environment in Asia Pacific and third best worldwide. These conditions combine to make Singapore the most competitive Asian country and an ideal place to do business. Singapore has one of the most stable political environments in Asia, offering entrepreneurs and investors a strong sense of security and comfort. Its judicial system has been recognized as one of the most efficient in Asia, enforcing anti-corruption laws so that investors can conduct business without fear of bureaucratic malaise.
Multinational Companies to Relocate Their Headquarters to Singapore
Also, through strict law enforcement, Singapore has a persistently low crime rate and offers residents a high degree of personal safety. In the event of cross-border disputes, businesses can rely on Singapore’s reputation as a world-class arbitration facility. To encourage multinational companies to relocate their headquarters to Singapore, the Economic Development Board (EDB) offers regional headquarters (RHQ) and international headquarters (IHQ) incentives. Companies which are conferred the RHQ status enjoy a concessionary tax rate of 15% for qualifying income arising from headquarters activities and operations carried out from Singapore. Those awarded IHQ status enjoy even further attractive tax rates of between zero and 10%. Regional headquarters which use Singapore as an international intellectual property (IP) holding location may claim writing-down allowance (WDA) for the cost of acquisition of the IP. Another key benefit of doing business in Singapore is that businesses can take advantage of the Double Taxation Agreements (DTA) Singapore has established and signed with several countries, which makes clear the taxing rights between Singapore and her treaty partner on different types of income arising from cross-border economic activities between the two jurisdictions. DTA between Singapore and another jurisdiction serves to prevent double taxation of income earned in one jurisdiction by a resident of the other jurisdiction. These agreements also provide for reduction or exemption of tax on certain types of income.