Singapore budget 2002--restructuring to address new challenges

Abstract

Singapore's finance minister presented his 2002 budget statement on May 3, 2002. The 2002 budget statement contains a series of corporate tax proposals designed to promote enterprise and growth. Recognizing that its corporate income tax rate will directly affect Singapore's global competitiveness, the minister has accepted a recommendation from the Economic Review Committee to reduce Singapore's corporate income tax rate to 20% within 3 years. Perhaps the most significant tax change recommended in the budget is the plan to move towards a one-tier corporate taxation system in Singapore effective January 1, 2003. The proposed one-tier corporate taxation system would simplify the tax process.