Singapore’s prime minister has revealed that taxes will have to rise in the future, hinting that the historically law rates could be coming to an end.
This could be of interest to professionals moving to Singapore, attracted not only by the business opportunities, but the tax breaks that are available in the increasingly influential city-state.
After all, according to a recent survey by the financial recruitment firm Astbury Marsden, Singapore is the number one destination for investment banking staff.
The reason for the change is to do with the way society is changing in the country, famous for its low personal tax rates – only 20 per cent is charged at the highest rate.
With its population set to get increasingly older, the idea of introducing a system of social security similar to western countries – i.e. greater welfare – is fast becoming an important and pressing matter for politicians.
“As our social spending increases significantly, sooner or later, our taxes must go up,” explained prime minister Lee Hsein Long in a speech.
“Not immediately, but if we are talking about 20 years, certainly within that 20 years, whoever is the government will at some point have to raise taxes because the spending will have to be done.”
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