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Thursday, October 28, 2010

Effective tax 12 percent for Genting Singapore compared to over 39 percent in Macau

Singapore, with its two mega casinos, is unlikely to overtake Macau but may steal some "high-rollers" from China as operators shift premium business to the city-state where they face an effective tax rate of 12 per cent compared with about 39 per cent in the Chinese territory.

What this could translate is greater operating profit.
Say if there was a revenue of $1bil, after approximate after-tax profit would be 88% x 1bil = 880mil
While casinos operating in Macau will be left with just 61% x 1bil = 610mil

That 200mil saved could be used in many ways. Repaying the loan. Paying the salaries of the ten thousand employees, or a bonus to employee. Based on that number each average employee could get $1667 as a year end bonus. Why not?!

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