Singapore’s decision to hike taxes on its top earners has raised questions about whether the unanticipated move may erode the city state’s longer-term competitiveness.
The nation’s low tax regime has long been a magnet for attracting highly skilled talent as well as the super-rich from abroad.
In its budget for 2015 delivered on Monday, the government announced an increase in the income tax rate for those in the top tier – residents with a chargeable income exceeding 320,000 Singapore dollars ($256,000) – to 22 percent from 20 percent starting with income earned in 2016.
CNBC
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