Singapore's tax policy is designed to maintain its international competitive position. Foreign firms are taxed on the same basis as local firms. The corporate tax is currently at 26 percent. The Government aims to bring the corporate tax down to 25 percent in the next few years. There are no taxes on capital gains, turnover, or development.
Tariffs exist for only a few products.
Excise duties are levied on cigarettes, alcohol, petroleum products and motor vehicles primarily to control social behavior and restrict motor vehicle use. Many of Singapore's public policy measures are tailored to attract foreign investments and ensure an environment conducive enough for their efficient business operations and profitability. Investment policies are direct and designed to benefit both parties. Singapore's budget surpluses and mandatory savings have allowed the government wide latitude in supporting infrastructure, education, and other programs contributing significantly to national development. Barriers to U.S. Exports Singapore has one of the world's most liberal and open trade regimes.