Up GST to 7% and lower corporate tax will attract more foreign investment, how true ?

Question

Can anybody explain how this taxes can affect foreign investment in Singapore because with the GST going to go up, it will only increase the business cost more so how to attract more foreign investment ?

Answer 1

Good question. The overall tax burden is what a savvy investor will consider, and if the corporate tax is lowered sufficiently, the GST increase may become a non-issue.

Answer 2

The fact is that Singapore corporate tax rates have been progressively lowered over the past decade or so. And therefore going by the trend, it may not be a surprise if the rates are further lowered, thereby leaving scope for the government to increase the GST tax rate. However, the global corporate industry is more concerned with the corporate tax system of a country. Hence, attracting more foreign investment in the coming years should not be a problem.The fact is that Singapore corporate tax rates have been progressively lowered over the past decade or so. And therefore going by the trend, it may not be a surprise if the rates are further lowered, thereby leaving scope for the government to increase the GST tax rate. However, the global corporate industry is more concerned with the corporate tax system of a country. Hence, attracting more foreign investment in the coming years should not be a problem.
http://www.sbsgroup.com.sg/singapore-taxation/singapore-corporate-tax-compliance-service/

Answer 3

With the lowering in the corporate tax, more investor will come as the competitive edge is better than other countries where the increase of GST to 7% it affect individual more and not the coporate.