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 27 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. There are no nontariff barriers to foreign goods. Many of Singapore's public policy measures are tailored to attract foreign investments and ensure an environment conducive to their efficient business operations and profitability. Investment policies are direct and designed to benefit both investors and Singapore. Although the Government seeks to develop more high-tech industries, it does not impose production standards, require purchases from local sources, or specify a percentage of output for export.