Singapore imposes a corporate statutory tax rate of 17% and offers a productivity and innovation credit that allows a 400% superdeduction on certain qualifying R&D expenses up to SGD $400,000; 100% and 150% superdeductions on certain expenses above SGD $400,000; a nontaxable cash payout option for up to SGD $100,000 of qualifying expenditures; and a tax deferral option
Discrimination: If the seller takes advantage of the capital gains tax deferral option
, family members of the seller and 25% of the stockholders must be excluded from the ESOP
The tax deferral option
, according to Schmalz, is enhanced by another change in the Clinton tax plan.
These transactions can offer not only tax deferral options
, but the ability to structure different tax treatments for different ownership entities, a continuing investment of pre- tax proceeds, increased levels of liquidity, varying degrees of continuing control, asset diversification, public market execution, and the ability for partners to make independent investment decisions.