Japan vs Singapore taxes (2026): income, corporate tax and CGT

Japan vs Singapore tax rates at a glance

Tax	🇯🇵 Japan	🇸🇬 Singapore
Income tax	National income tax: 5% - 45% Highest bracket tax: 45% Inhabitant tax: 4% + 6% Reconstruction surtax: 2.1% of income tax Non-resident salary: 20.42% Employment-income deduction: ¥650,000 minimum Individual enterprise tax: 3% - 5% Very-high-income additional rule: 22.5% comparison rate	Resident income tax: 0% - 24% Non-resident income tax: 24% Employment concession: 15% or resident rates Foreign income: 0% / limited exceptions CPF employee: 20% CPF employer: 17%
Corporate tax	Standard national corporation tax: 23.2% Qualifying SME first ¥8 million: 15% Certain high-income SMEs first ¥8 million: 17% Large-company effective rate: 30.64% Qualifying SME effective bands: 21.94% / 23.73% / 34.43% Pillar Two minimum: 15%	Corporate income tax: 17% Start-up exemption: Up to S$125,000 Partial exemption: Up to S$102,500 YA 2026 rebate: 50% GST: 9% Dividend withholding tax: 0%
Capital gains tax	Listed securities: 20.315% Long-term land and buildings: 20.315% Short-term land and buildings: 39.63% Cryptoassets: Progressive income rates Main-home special deduction: Up to ¥30 million	Capital gains tax: 0% Crypto gains tax: 0% Share gains tax: 0% Property gains tax: 0%
Dividend tax	Listed shares below 3%: 20.315% Unlisted shares: 20.42% Listed shares at or above 3%: 20.42% National portion on listed shares: 15.315% Local portion on listed shares: 5% NISA dividends: 0%	Dividend withholding tax: 0% Domestic dividends: 0% Foreign dividends: 0% / limited cases
Wealth tax	Personal net wealth tax: 0% Fixed asset tax: 1.4% City planning tax: Up to 0.3% Business-office tax: ¥600 / m² + 0.25% payroll	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%
Inheritance / estate tax	Inheritance tax range: 10% - 55% Basic exemption: ¥30m + ¥6m × statutory heirs Statutory share up to ¥10m: 10% Statutory share ¥100m - ¥200m: 40% Statutory share ¥300m - ¥600m: 50% Statutory share above ¥600m: 55% Spouse credit: ¥160m or legal share Annual gift exemption: ¥1.1 million	Inheritance tax: 0% Estate duty: 0% Gift tax: 0% Probate tax: 0%
VAT / GST / sales tax	Consumption tax: 10% / 8%	GST: 9%
Other key taxes	Special reconstruction surtax: 2.1% of income tax Inhabitant tax: About 10%	None listed on country overview

Who wins on each tax

Personal income taxSingapore

Singapore tops out at 24%, while Japan's national scale reaches 45% before typical inhabitant tax.

Corporate taxSingapore

Singapore's flat 17% rate is below Japan's effective corporate rate, often around 29.74% before the defense surcharge.

Capital gains taxSingapore

Singapore generally does not tax gains on personal investments, property or crypto unless the activity is trading; Japan commonly taxes listed-security gains at 20.315%, real estate at 20.315% after long-term ownership or 39.63% after short-term ownership, and crypto as progressive miscellaneous income.

Dividend taxSingapore

Singapore generally has no dividend withholding and ordinary Singapore company dividends are tax-exempt under the one-tier system; Japan commonly withholds 20.315% on listed-share dividends, with different rules for major shareholders and unlisted shares.

Domestic marketJapan

Japan has a much larger domestic consumer and enterprise market.

The verdict

Singapore wins decisively on ordinary tax rates: its personal top rate is 24%, corporate tax is 17% and ordinary capital gains are generally not taxed.

Japan offers a far larger domestic market but reaches a 45% national personal rate plus inhabitant tax and has a much heavier inheritance-tax system.

For a regional founder with real mobility, Singapore is usually the tax answer; Japan needs a commercial or personal reason beyond tax.

How to read this comparison

Japan and Singapore are both major Asian hubs, but Singapore's tax system is substantially lighter for internationally mobile people.

Frequently asked questions

Is Singapore better than Japan for tax?

For a mobile investor or founder, Singapore is usually much lighter on personal income, company profits, dividends and capital gains.