Singapore vs Hong Kong taxes (2026): income, company tax and GST

Singapore vs Hong Kong tax rates at a glance

Tax	🇸🇬 Singapore	🇭🇰 Hong Kong
Income tax	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%	Salaries tax: 2% - 17% Standard rate cap: 15% / 16% Foreign-sourced salary: 0% / source-based Employee MPF: 5% Employer MPF: 5% Tax on wages: 2% - 17%
Corporate tax	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%	Corporate profits tax: 8.25% / 16.5% Standard company tax: 16.5% Offshore profits: 0% DMTT for in-scope MNEs: 15% Dividend withholding tax: 0% VAT / GST: 0%
Capital gains tax	Capital gains tax: 0% Crypto gains tax: 0% Share gains tax: 0% Property gains tax: 0%	Capital gains tax: 0% Crypto capital gains tax: 0% Shares and securities gains: 0% Real estate gains: 0%
Dividend tax	Dividend withholding tax: 0% Domestic dividends: 0% Foreign dividends: 0% / limited cases	Dividend withholding tax: 0% Domestic dividend tax: 0% Foreign dividend tax: 0%
Wealth tax	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%
Inheritance / estate tax	Inheritance tax: 0% Estate duty: 0% Gift tax: 0% Probate tax: 0%	Inheritance tax: 0% Estate tax: 0% Gift tax: 0% Probate tax: 0%
VAT / GST / sales tax	GST: 9%	VAT / GST: 0%
Other key taxes	None listed on country overview	Salaries tax: 2% - 17% Standard rate cap: 15% / 16%
Standard GST / VAT	9% GST	0%
Territorial treatment	Territorial with remittance and exemption rules	Source-based system, with FSIE rules for specified MNE passive income

Who wins on each tax

Personal income taxHong Kong

Hong Kong's salaries tax standard-rate cap is below Singapore's 24% top resident rate.

Corporate taxHong Kong

Hong Kong's two-tier profits tax starts at 8.25%, below Singapore's 17% headline rate; multinational foreign passive income is subject to the FSIE regime unless an exception applies.

Capital gains taxTie

Neither jurisdiction levies a general capital gains tax on capital assets.

VAT / GSTHong Kong

Hong Kong has no VAT or GST, while Singapore GST is 9%.

Treaty network & bankingSingapore

Singapore is usually stronger for treaty use, banking depth and international business substance.

The verdict

Hong Kong usually wins on raw rates. Salaries tax is capped by a standard-rate calculation, profits tax starts at 8.25% on the first HKD 2 million, there is no VAT or GST, and the territorial system can keep genuine offshore profits outside the local tax net. For multinational-group entities, specified foreign passive income received in Hong Kong is subject to the FSIE regime unless an exception applies.

Singapore is often the stronger platform despite the higher headline rates. Its 17% corporate tax, 24% top personal rate and 9% GST are not the lowest, but treaty access, banking depth, substance, rule clarity and investor confidence can produce a better real-world result.

Choose Hong Kong if your income is clearly Hong Kong-source limited or genuinely offshore and you want the lowest headline tax. Choose Singapore if you need treaty relief, institutional banking, investor trust or a company base that counterparties rarely question.

How to read this comparison

Singapore and Hong Kong are both serious Asian hubs. Hong Kong is usually lower tax on paper; Singapore is often stronger when the structure needs to survive banks, investors and foreign tax authorities.

Which one fits you

🇸🇬 Choose Singapore if you're a…

Founders needing treaty relief and investor confidence
Holding companies with real Singapore substance
Businesses that value banking stability over the lowest rate

🇭🇰 Choose Hong Kong if you're a…

Founders with genuine offshore profits
Employees comparing headline salaries tax
Businesses that benefit from no VAT or GST

Frequently asked questions

Is Singapore or Hong Kong better for tax?

Hong Kong usually has lower headline personal tax, lower first-tier profits tax and no VAT. Singapore is often better for treaty access, banking, investor trust and a more conventional regional headquarters setup.

Do Singapore and Hong Kong tax capital gains?

Neither has a general capital gains tax on capital assets. Gains can still be taxed if they are trading or revenue in nature.

Which is better for a remote founder?

Hong Kong can be cheaper if profits are genuinely offshore and well documented. Specified foreign passive income received in Hong Kong by multinational-group entities can fall within the FSIE regime unless an exception applies. Singapore is usually stronger if the founder needs banking, treaty relief, fundraising credibility or a tax-resident company with real substance.