In this article, we go over the fundamental distinctions between conducting business in Singapore and Canada.

	Singapore	Canada
Corporate Tax	0% (on Foreign Profits)	15%
Withholding Tax	0% (on Dividends)	25%
Time to Incorporate a Business	3 days	1 – 2 day

Environment for Business

The World Bank has classified Singapore as the second-easiest country in which to conduct business, while Canada is ranked 23rd.

Here are some of the main criteria used to rank each country:

Economy	Global Rank	Start-up of a Business	Protecting minority investors	Paying taxes	Trading between countries
Singapore	2	4	3	7	47
Canada	23	3	7	19	51

Taxation

Individuals who live in Singapore are subject to the following progressive resident tax rates. If your annual income is S$20,000 or more in Singapore, you must file a personal tax return.

Individuals who live in Canada are subject to the following progressive resident tax rates. For the first $49,020 and beyond, tax residents are required to file a personal tax return.

IP Protection

On the International Property Rights Index 2020, which evaluates the effectiveness of a nation’s regime for property rights, including both intellectual and physical property rights, Singapore is placed first and Canada is ranked second.

Trade Openness

Singapore is ranked third in the world for trade openness, as measured by trade openness: exports plus imports as a percentage of GDP, according to data from The World Bank for 2019. Canada is placed 99th.

Bureaucracy

Transparency International’s Corruptions Perceptions Index 2018 report rates Singapore and Canada as clean nations with low levels of corruption. Canada comes in at number nine, while Singapore comes in at third.

Workforce

Here are some of the important indices used in The Global Competitiveness Report 2018 to compare the competitiveness of the labour markets in Singapore and Canada.

(Ranking based out of 140 countries)	Singapore	Canada
Digital skills among population	6	18
Cooperation in labour-employer relations	2	17
Ease of hiring foreign labour	97	81
Pay and productivity	3	8
Labour tax rate	75	50

Country Rankings in Brief: Singapore and Canada

Year	Category	Singapore’s rank	Canada’s rank	Source
2018	Ease of doing business	2	22	World Bank, Ease of Doing Business Report
2018	Most competitive economy in the world	2	12	World Economic Forum, Global Competitiveness Report
2016	Most trade-friendly country	1	24	World Economic Forum, Global Enabling Trade Report
2018	The country with the lowest perception of corruption	3	9	Transparency International’s Corruption Perceptions Index
2019	Best cities for quality of life	25	3 (Vancouver)	Mercer’s Quality of Living Report

Singapore: Opportunities for Canadian Businesses

Because of its safety, political stability, and accessibility to one of the world’s major economies – South East Asia – Singapore has been a preferred location for many Canadian enterprises to build and extend their company activities.

Incentives, agreements, and treaties between Singapore and Canada that support thriving business are examined in our article.

The Singapore – Canada Tax Treaty

In order to improve economic cooperation and offer mutually beneficial tax arrangements for enterprises in Canada and Singapore, Singapore signed its first double tax agreement with Canada in 1976. In order to promote trade between the two countries, the Singapore-Canada double taxation agreement offers a number of tax exemptions and reductions on various categories of income.

The Singapore – Canada double taxation convention provides the following tax rates*:

• Royalty payments are subject to a 15% tax

• 15% of dividend payments are taxed

• 15% of interest payments are taxed

*Dividends paid by a corporation that is a Singapore resident to a Canadian resident are free from any Singapore taxes that may be levied on dividends in addition to the taxes levied on the company’s earnings or revenue.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

On December 30, 2018, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with Singapore went into effect. It makes it simple for Canadian businesses to invest in Singapore, protects them from unfair and discriminatory treatment, and offers more predictability and transparency.

94% of Singapore’s exports to CPTPP nations are similarly exempt from tariffs under the CPTPP, facilitating trade between Canada and Singapore.