Also, since tax rules are so simple there are no ways to cheat, because that usually comes with complex and vague rules of tax deductions, which Singapore simply does not have.

Yes, you'd have to hide your income. And that's harder than getting it misclassified in a more complex system.

While Singapore may have some low taxes, it doesn't really tell you the whole story.

owning a cars/road taxes are extremely expensive:

http://www.expatsingapore.com/content/view/1152

A friend of mine drives a company car there (because it costs so much to own). It cost the company $100,000 for a license and this was after getting picked in a lottery. There is also a government black box in the car that will track where you drive and determine your tax rate.

unless you are rich or are an employee of a big company, you pretty much don't drive there.

http://thehearttruths.com/2013/08/16/are-taxes-in-singapore-...

In reality, you are effectively paying a 60% income tax rate...although it looks like much less on paper.

Another article on living expenses in Singapore (from the same blog):

http://thehearttruths.com/2013/08/02/how-much-do-you-need-to...

This is the key. And the reason why lowering rates and removing exemptions (1980s USA) creates increased tax revenue.