Wednesday, May 13, 2009

Talent Exodus

Singapore seems to be a logical choice if you wish to work outside Malaysia ... Personal and commercial income tax in Singapore is also lower than malaysia and one of the lowest in the world. Read the quoted text below from "TheEdge Malaysia".

It is not just the bleak employment scenario at home that is driving Britons abroad, though. There are fears of an exodus of big-earning talent , as the UK looks set to become one of the top 10 most expensive nations taxwise, following the unveiling of tax increases for high earners in the Budget announcement recently.

High-profile businesspeople, including Sir Richard Branson, have slammed the move to raise the top income tax to 50% from the current 45% for those earning more than £150,000 a year, and to cut all personal allowances for those whose annual salary exceeds £100,000. This is seen as a disincentive to entrepreneurs, some of whom have already indicated that they could leave the UK to relocate to tax havens like Switzerland and Monaco. For those looking farther afield, Singapore's top personal income tax rate of 20% would certainly make it seem even more attractive.

In early 2008, The Daily Telegraph reported on an Organisation of Economic Cooperation and Development (OECD) study showing that the UK was experiencing its biggest brain drain in 50 years, as the country lost more than 10% of its most-skilled citizens. While hundreds of thousands of retired Britons live abroad, the study revealed that almost 60% of those leaving take up job overseas. According to anecdotal evidence, the most frequently cited reasons for leaving the country were high house prices, taxes, poor climate and quality of life.

Today, as the UK economy takes its worst dive in 30 years, increasing taxes and unemployment can be added to that list of reasons. Singapore will certainly have a greater pool of talent from which to pick.

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