Mr Owi Kek Hean, Head of Tax Services at KPMG in Singapore highlighted the following key trends.
Firstly, indirect tax rates on the whole have not changed, while corporate tax rates have been
pushed steadily down.
Secondly, more and more governments are introducing indirect tax systems. There are currently
135 countries with these systems in place and more in the pipeline.
Thirdly, there is a steady expansion of the transactions that these taxes are applied to, and a new focus from tax authorities on efficient collection of indirect taxes through corporate tax
Fourthly – Enforcement is on the rise.
If your business is making GST supplies of S$1 billion or more, you are entitled to access its GST
Compliance Assurance Programme. This programme involves visits by specialist revenue authority officers to large businesses to assist with issues of GST accounting, record keeping and reporting.
Interesting facts on Asia Pacific countries:-
Corporate tax rates – Highest – Japan with 40%, Lowest – Macau 12%
Indirect tax rates – Highest – Pakistan 20%, Lowest – Japan 5% (Sweden – 25%)