Tax Consideraions For Doing Business In UK

Discussion in 'Accounting and Taxes' started by susanjain, Oct 23, 2009.

  1. susanjain

    susanjain
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    Here is an interesting article on tax considerations for doing business in UK versus Singapore. There are some interesting facts such as:

    1. UK's corporate tax rate is 28% for companies with profits over 1.5 million GBP and 21% for small companies with profits of 300,000 GBP or less. Singapore's corporate income tax rate is less than 9% for profits up to S$300,000 and flat 17% above S$300,000.

    2. Dividend income is taxable in the UK but not so in Singapore.

    3. UK companies are taxed on their worldwide income. Singapore companies are taxed only on income that arises from Singapore or remitted into Singapore.

    4. A UK company must register for VAT when its taxable turnover for a year is above or expected to be above 68,000 GBP. The VAT rate is 15%. Singapore companies must register for GST when the annual turnover is above or expected to be above 1 million SGD. The GST rate in Singapore stands at 7%.

    Wonder if any UK based companies or entrepreneurs are considering re-locating to Singapore??:confused:
     
  2. seanstevens

    seanstevens
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    Every company has its good and bad points. Whilst the UK (government) maybe less helpful to the small business at the current time it is still very easy to start a business in the UK and if you are good at what you do there is plenty of business to be had.

    Having a company in a different country may well earn you a tax break, but at the same time raises a lot of other issues, such as time differences, language, quality of labour and materials (if you are sourcing a specific skill or raw material) + plenty of other things.

    No 3 is interesting, i.e. UK companies taxed on all income. I believe that Obama has already or is pushing through the same tax law in the US to try to stop so many US companies moving their IP offshore.

    I'm sure there will be many businesses having these discussions at board level every week in every country. An interest post & topic - thanks for posting it.
     
  3. Fergal

    Fergal
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    The Irish government has always been keen to attract multinational companies here by charging low rates of corporation tax. Our corporation tax rate is only 12.5%, which is lower than most countries, including our nearest neighbour, the UK. The strategy has been successful for Ireland and we've managed to maintain this low corporation tax rate for many years, despite increasing pressure from the EU to bring the rate more in line with other EU countries.
     

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