Singapore is well-known international financial center. supported by the offshore banking and financial sector is robust economy and basic institutions, is therefore an attractive base for financial institutions. The country’s strategic location, to bridge the time difference between the United States and the European financial markets. Singapore enjoys a stable social, political and economic environment, skilled labor and government incentives are supported. Singapore exchange market ranked fourth in the world, the fifth-largest derivatives trading center and ninth in terms of offshore lending. Three types of banks in Singapore, they are as follows: Full banks, banks and offshore banks are restricted.
Full banks offer a variety of banking services, as provided in the Act on Credit Institutions. Limited banks offer the same full service banks are just not being able to open savings accounts and current account customers in Singapore dollar fixed deposits of less than 250,000 Singapore dollars to non-bank customers.
The history of Singapore a global financial center dates back to 1973, foreign banks have commenced operations in the country, this is the time when the category offshore banks have been set up. These banks offer the same services, full and limited the banks, but to a more limited role. In the local market, offshore banks, financial institutions can only get interest on deposits accumulating approved. In addition, they can not open more than one branch.
Singapore, offshore banks conduct their business under a separate financial reporting entity known as the Asian Monetary Unit (acus). Acuson be committed, and hold the assets of other currencies and conduct all types of banking activities, but not Singapore dollars. There are a number of incentives, which are available acus; One of the most important is that under acus compared to only 10% taxation of profits 27% to other organizations. In addition acus not exposed to liquidity and reserve requirements for other banks. The most important role is to route acus capital in North America, Europe and the Middle East to emerging markets in Asia.
On the other hand, Mauritius is an emerging global financial center. Normally, offshore transactions are carried out in other currencies, except for the Mauritian rupee by non-residents. Offshore business investment especially in areas of trade, economy and fund management. The island’s growing reputation as a destination of choice for structuring offshore funds and investment vehicles. In the space between, Mauritius is strategically located in Africa and Asia and as a gateway to Africa.
The history of Mauritius offshore banking can be traced back to 1989, offshore banks are allowed to set up operations in Mauritius. However, it was in 1992, when two law have taken place, paving the way for growth in the financial services sector.
There are several factors that make Mauritius an attractive hub for offshore financial activities include: exemption from withholding tax interest bearing deposits and freedom used in other provisions of domestic banks. Offshore banks are exempt from the regulations of the exchange control laws. Compared to Singapore, offshore banks are exposed to just 5 percent compared with 10 percent in Singapore. The banks are also free to repatriate profits without additional taxation. These banks are also exempted from stamp duty documents related to offshore operations. They also have access to a double taxation agreement signed in Mauritius more than 33 countries. Finally, offshore banks are also exempt from the capital gains and non-inherited shares attract tax.