Showing posts with label News Update. Show all posts
Showing posts with label News Update. Show all posts
Saturday, April 12, 2008
SGD is going higher
With inflation forecast at over 5 per cent for the rest of the year, the Monetary Authority of Singapore on Thursday decided to allow an increase in the value of the Singapore dollar, by moving its trading range up.
Monday, March 3, 2008
新加坡 未来的金融中心
今天在Financial Times上读到一篇文章，谈到最近Liechtenstein的漏税事件，给新加坡的private banking业务带来了好时机。
由于Liechtenstein事件的波及，欧洲金融中心瑞士和卢森堡也受到影响，因为客户对其信心不足，将是的大量资金从欧洲转移到新加坡，使得一直以来就发展迅速的新加坡private banking再次飞跃。
转载3月3好金融时报 标题：Liechtenstein tax inquiry likely to boost Singapore
Singapore, the world's fastest growing private banking certre, could be the main beneficiary from the Liechtenstein tax evasion investigation, according to the global head of Societe Generale's private banking business.
"Because of what happened in Liechtenstein, we will see a higher flow of funds into Singapore," said Daniel Truchi, who previously headed SG Private Banking's Asian operations from Singapore. "The momentum is accelerating."
The recent events in Liechtenstein are "sort of like an earthquake for European private banking" because "it undermines client confidence" and its effects will be felt in other European wealth management centres, including Switzerland and Luxembourg, Mr Truchi said.
Singapore will attract more money because its bank secrecy and trust laws governing inheritance are among the tightest in the world, Mr Truchi said. Those who break Singapore bank secrecy laws are subject to harsher punishments than applied in Switzerland. Singapore also has no laws against international tax evasion.
Singapore has introduced new rules on bank secrecy and trusts in the past few years in consultation with the global private banking industry as the south-east Asian city-state has identified wealth management as a growth industry.
Singapore could receive a significant boost as money flows from Europe.
"Switzerland's private banking business is 10 times bigger than Singapore's but if we see 10 percent of those funds moving from Switzerland, it will double the amount of assets managed in Singapore," Mr Truchi said.
However, Singapore is under growing pressure from the European Union to ease its secrecy rules to help catch tax evaders. The issue has emerged as the main stumbling block in a trade pact being negotiated between Singapore and the EU.
"Singapore is not a tax haven. We are a low-tax country but not a tax haven. The situation that arose in Liechtenstein cannot happen here," said George Yeo, the Singapore foreign minister, after meeting his German counterpart last week to discuss the issue.
Singapore's bank secrecy laws are "very important" to Singapore's development as an international finance centre but "we do not condone drug money or terrorism money or money laundering. These are crimes," Mr Yeo said.
Mr Truchi said that Singapore is unlikely to bow to EU pressure in the near-term as it seeks to expand its private banking business.
由于Liechtenstein事件的波及，欧洲金融中心瑞士和卢森堡也受到影响，因为客户对其信心不足，将是的大量资金从欧洲转移到新加坡，使得一直以来就发展迅速的新加坡private banking再次飞跃。
转载3月3好金融时报 标题：Liechtenstein tax inquiry likely to boost Singapore
Singapore, the world's fastest growing private banking certre, could be the main beneficiary from the Liechtenstein tax evasion investigation, according to the global head of Societe Generale's private banking business.
"Because of what happened in Liechtenstein, we will see a higher flow of funds into Singapore," said Daniel Truchi, who previously headed SG Private Banking's Asian operations from Singapore. "The momentum is accelerating."
The recent events in Liechtenstein are "sort of like an earthquake for European private banking" because "it undermines client confidence" and its effects will be felt in other European wealth management centres, including Switzerland and Luxembourg, Mr Truchi said.
Singapore will attract more money because its bank secrecy and trust laws governing inheritance are among the tightest in the world, Mr Truchi said. Those who break Singapore bank secrecy laws are subject to harsher punishments than applied in Switzerland. Singapore also has no laws against international tax evasion.
Singapore has introduced new rules on bank secrecy and trusts in the past few years in consultation with the global private banking industry as the south-east Asian city-state has identified wealth management as a growth industry.
Singapore could receive a significant boost as money flows from Europe.
"Switzerland's private banking business is 10 times bigger than Singapore's but if we see 10 percent of those funds moving from Switzerland, it will double the amount of assets managed in Singapore," Mr Truchi said.
However, Singapore is under growing pressure from the European Union to ease its secrecy rules to help catch tax evaders. The issue has emerged as the main stumbling block in a trade pact being negotiated between Singapore and the EU.
"Singapore is not a tax haven. We are a low-tax country but not a tax haven. The situation that arose in Liechtenstein cannot happen here," said George Yeo, the Singapore foreign minister, after meeting his German counterpart last week to discuss the issue.
Singapore's bank secrecy laws are "very important" to Singapore's development as an international finance centre but "we do not condone drug money or terrorism money or money laundering. These are crimes," Mr Yeo said.
Mr Truchi said that Singapore is unlikely to bow to EU pressure in the near-term as it seeks to expand its private banking business.
Tuesday, February 19, 2008
Estate duty to be abolished in Singapore
Article obtained from straitstimes.com on 15th February 2008
SINGAPORE will abolish estate duty, or taxes collected on wealth left behind after an individual’s death, Finance Minister Tharman Shanmugaratnam announced on Friday.
‘If we make Singapore an attractive place for wealth to be invested and built up, whether by Singaporeans or foreigners who bring their assets here, it will benefit our whole economy and society,’ he said in his budget speech in Parliament.
It will cost the government $75 million a year, he said.
Singapore inherited estate duty from the British. The rates originally were high - and until 1984, the top rate was 60 per cent.
The current rates are much lower - five per cent for the first $12 million of dutiable assets and 10 per cent thereafter.
On the removal of the estate duty from the tax regime, with immediate effect, Mr Shanmugaratnam said: ‘Estate duty is a means to rebalance opportunities with each new generation and prevent wealth from being concentrated in fewer and fewer hands over time.’
‘It was especially relevant at the time when the bulk of wealth comprised land that was passed down through the family. Today, however, wealth is being created in many more ways and by a wider group of entrepreneurs, many of whom start off with little.’
‘Wealth is also being managed today on a global basis. Proponents of removing estate duty have therefore argued that removing it would encourage wealthy individuals from all over Asia to bring their assets into Singapore, thus supporting the growth of the wealth management industry.’
‘Ordinary Singaporeans have also argued that having worked, paid taxes on their income and property, and built up their savings, they want to be able to pass it on to their families. Some are in fact liable for Estate Duty when their estates receive large life insurance payouts.’
The Minister said the current low exemption limit for non-residential assets, set at $600,000, compared to the higher limit of $9 million for residential properties in fact tends to affect the middle and upper-middle-income estates disproportionately compared to wealthier ones.
‘We have considered raising the $600,000 limit for non-residential assets so as to correct for this. However, this would further shrink what is already a narrow tax base and render the tax less effective,’ he said.
‘I have therefore decided to remove Estate Duty from our tax regime, with effect from today. It is not just a practical or expedient measure, but one that on balance will be in our collective interest.’
‘If we make Singapore an attractive place for wealth to be invested and built up, whether by Singaporeans or foreigners who bring their assets here, it will benefit our whole economy and society, not just the individuals who build up their wealth. It is not a zero sum game.’
He encouraged individuals who have accumulated wealth to think of how they can use it to make a contribution to society, and make full use of the enhanced incentives introduced last year to promote philanthropy.
This will benefit schools, universities and hospitals, and the growing range of charitable causes in Singapore.
With the removal of Estate Duty, he said the remaining tax on wealth would be property tax.
On why this should be retained, the minister said: ‘It is an efficient tax, set at a low rate in relation to the full value of the property, especially for owner-occupied homes. You cannot tax-plan it away. It also does not affect our middle and upper-middle-income estates disproportionately compared to wealthier ones.’
‘This is why most countries have some form of tax on property - including even Hong Kong, which like us does not have capital gains tax and has already done away with Estate Duty. Only Ireland does not have a tax on residential property, but the Irish have capital gains tax, inheritance tax and gift tax.’
SINGAPORE will abolish estate duty, or taxes collected on wealth left behind after an individual’s death, Finance Minister Tharman Shanmugaratnam announced on Friday.
‘If we make Singapore an attractive place for wealth to be invested and built up, whether by Singaporeans or foreigners who bring their assets here, it will benefit our whole economy and society,’ he said in his budget speech in Parliament.
It will cost the government $75 million a year, he said.
Singapore inherited estate duty from the British. The rates originally were high - and until 1984, the top rate was 60 per cent.
The current rates are much lower - five per cent for the first $12 million of dutiable assets and 10 per cent thereafter.
On the removal of the estate duty from the tax regime, with immediate effect, Mr Shanmugaratnam said: ‘Estate duty is a means to rebalance opportunities with each new generation and prevent wealth from being concentrated in fewer and fewer hands over time.’
‘It was especially relevant at the time when the bulk of wealth comprised land that was passed down through the family. Today, however, wealth is being created in many more ways and by a wider group of entrepreneurs, many of whom start off with little.’
‘Wealth is also being managed today on a global basis. Proponents of removing estate duty have therefore argued that removing it would encourage wealthy individuals from all over Asia to bring their assets into Singapore, thus supporting the growth of the wealth management industry.’
‘Ordinary Singaporeans have also argued that having worked, paid taxes on their income and property, and built up their savings, they want to be able to pass it on to their families. Some are in fact liable for Estate Duty when their estates receive large life insurance payouts.’
The Minister said the current low exemption limit for non-residential assets, set at $600,000, compared to the higher limit of $9 million for residential properties in fact tends to affect the middle and upper-middle-income estates disproportionately compared to wealthier ones.
‘We have considered raising the $600,000 limit for non-residential assets so as to correct for this. However, this would further shrink what is already a narrow tax base and render the tax less effective,’ he said.
‘I have therefore decided to remove Estate Duty from our tax regime, with effect from today. It is not just a practical or expedient measure, but one that on balance will be in our collective interest.’
‘If we make Singapore an attractive place for wealth to be invested and built up, whether by Singaporeans or foreigners who bring their assets here, it will benefit our whole economy and society, not just the individuals who build up their wealth. It is not a zero sum game.’
He encouraged individuals who have accumulated wealth to think of how they can use it to make a contribution to society, and make full use of the enhanced incentives introduced last year to promote philanthropy.
This will benefit schools, universities and hospitals, and the growing range of charitable causes in Singapore.
With the removal of Estate Duty, he said the remaining tax on wealth would be property tax.
On why this should be retained, the minister said: ‘It is an efficient tax, set at a low rate in relation to the full value of the property, especially for owner-occupied homes. You cannot tax-plan it away. It also does not affect our middle and upper-middle-income estates disproportionately compared to wealthier ones.’
‘This is why most countries have some form of tax on property - including even Hong Kong, which like us does not have capital gains tax and has already done away with Estate Duty. Only Ireland does not have a tax on residential property, but the Irish have capital gains tax, inheritance tax and gift tax.’
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