Four hundred years ago, the Netherlands and Singapore began their long and rich history. Since then, as they continue to have close economic links and a similar outlook on the world, the two nations have increased their cross-border trade.

	Singapore	Netherlands
Corporate Tax	0% (on Foreign Profits)	25.8%
Withholding Tax	0% (on Dividends)	25.8%
Time to Incorporate a Business	3 days	3 weeks

In this article, different business variables are compared between Singapore and the Netherlands.

Environment for Business

Singapore is a significant trading partner of the European Union and the Netherlands (EU). The country’s business-friendly atmosphere is largely to blame for it. The Heritage Foundation, a Washington-based think organization, ranks Singapore second worldwide for economic freedom and opportunity. On the same index, the Netherlands is placed number thirteen.

Taxes

• Although most nations have complicated tax regulations, this comparison may be useful for Dutch companies wanting to establish operations in Singapore. Singapore has a top tax rate of 22%, compared to 52% in the Netherlands.

• The Netherlands and Singapore recently updated their bilateral tax treaty in order to handle cross-border tax disputes and stop multinational corporations from evading taxes (MNCs). The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting was ratified by the two nations (MLI).

• In order to implement the tax treaty relating to the base erosion and profit shifting (BEPS) findings from the OECD/G20, governments can quickly alter their existing tax treaties by using the MLI, a multilateral tax treaty that was established in 2015.

Intellectual Property Protection

Singapore has one of the strongest laws in the world for protecting intellectual property (IP), and its enforcement is strong. The Netherlands holds the fifth-place ranking in the World Economic Forum’s 2018 Global Competitive Index 4.0 Report, while Singapore is ranked third in terms of IP protection.

International Competitiveness

Singapore ranks highly in terms of economic competitiveness when compared to other global cities due to its outlook on the world. Singapore comes in second and the Netherlands comes in sixth in the World Economic Forum’s 2018 Global Competitiveness Report.

Openness to Trade

Singapore is ranked first globally in the subcategory of “Trade Openness” of the 2018 Global Competitiveness Report by the World Economic Forum. These distinctive attributes, which include connectivity, services, and world-class transportation infrastructure, are what make Singapore the trade openness leader. The Netherlands is ranked eighth overall.

Bureaucracy

According to Political & Economic Risk Consultancy in Hong Kong, Singapore has the most effective bureaucracy among its Asian counterparts, beating both Hong Kong and South Korea.

Government effectiveness is described by the World Bank as “the quality of public service delivery, the quality of the bureaucracy, the competency of civil servants, the independence of the civil service from political influences, and the credibility of the government’s commitment to programs.”

Singapore is ranked second in the ease of doing business, while the Netherlands is ranked 36th, according to the World Bank’s 2019 Doing Business Report.

Labour Force

A high level of employment is guaranteed by Singapore’s highly educated workforce and ongoing investment in skill development. According to the World Factbook of the Central Intelligence Agency, Singapore’s unemployment rate is 2.2%, while it is 4.8% in the Netherlands.

Singapore is ranked first on the World Bank Human Capital Index, while the Netherlands is ranked ninth. This recently released report places 157 nations in order of the results they accomplish in the areas of health and education.

Living Environment

• According to the End of Childhood Index 2019 study, which was released by the UK-based nonprofit organization Save the Children, Singapore is rated as the greatest country in the world for raising children. This ranking is based on elements including healthcare, nutrition, immunization, and access to education.

• Singapore concentrates its efforts on maintaining a healthy population as a response to a projected ageing population. According to the 2016 Global Obesity Levels and Rankings published by the World Health Organization, 20.4% of adults in the Netherlands and 6.1% of adults in Singapore are obese, respectively. Singapore is ranked eighth in the Bloomberg Global Health Index, whereas the Netherlands is ranked fifteenth.

Country rankings in brief: Singapore vs. Netherlands

Year	Category	Singapore’s rank	Netherlands’ rank	Source
2019	Living environment for children	1	Unavailable	End of Childhood Index 2019
2019	Healthy country	8	15	Bloomberg Global Health Index
2019	Economic freedom	2	13	2019 Index of Economic Freedom
2018	Competitive economy	3	4	IMD World Competitiveness 2018
2018	Human Capital	1	9	World Bank Human Capital Index 2018