Because of increased competition from offshore jurisdictions traditional financial centers are forced to lower taxes to attract international business and other benefits.

Prior to 2002, in Singapore can be recorded non-resident, that is offshore companies, but then, under pressure OSRV and other fighters from «harmful» tax practices of these companies have been abolished. Now, trying to preserve the jurisdiction of the leading position in the Asian region by other methods.

The draft budget for fiscal year 2007, Deputy Minister of Finance of Singapore, Tarman Shanmugaratnam announced the reduction of corporate tax by 2 percentage points - up to 18%.

Reduced revenues will be balanced by an increase of 1,5% of social contributions by employers, etc. According to the deputy minister, the prospects for Singapore over the next 5-10 years «excellent». The Government does not stop there and pulls out of 500 million Singapore dollars Research Foundation to develop high-tech business. Another tax incentive for small and medium-sized businesses is to raise the threshold of three partial exemption from taxation. Company's profit, which does not exceed 300 thousand Singapore dollars will be partially exempted from income tax.

According to Shanmugaratnama, in 2007, the Singapore economy will grow by 4.5% - 6.5%. The external debt of jurisdiction is also under control, and can be paid through a significant profitsitu budget.

For the purposes of tax planning are of interest many benefits, the law of Singapore. They seem to exporters, Shipping companies, companies operating in manufacturing, service industries, including and financial, as well as for the management structures of multinational corporations.