Overview: Two Low-Tax Giants
Hong Kong and Singapore are the two premier low-tax financial centers in Asia. Both attract global talent and businesses with their favorable tax regimes, but they take different approaches to taxation.
Hong Kong uses a territorial tax system - only income sourced in Hong Kong is taxed. Singapore taxes worldwide income for residents but offers extensive exemptions for foreign-sourced income. Both have significantly lower taxes than Western countries.
Quick Comparison at $100,000 USD Salary
| Metric |
🇭🇰 Hong Kong |
🇸🇬 Singapore |
| Gross Salary |
$100,000 |
$100,000 |
| Income Tax |
~$11,500 |
~$13,950 |
| Mandatory Retirement |
$3,000 (MPF 5%, capped) |
$0 for foreigners* |
| Net Take-Home |
~$85,500 |
~$86,050 |
| Effective Tax Rate |
~14.5% |
~13.95% |
*Singapore CPF contributions only apply to citizens and PRs. Foreigners don't pay CPF.
Key Insight
- For foreigners: Singapore often wins because there's no CPF contribution
- For high earners: Hong Kong's 15% cap becomes extremely valuable above ~$200k
- For investors: Neither taxes capital gains or dividends (both excellent)
- Tax filing: Both are simple with minimal deductions to track
Tax System Comparison
Income Tax Brackets
| Feature |
🇭🇰 Hong Kong |
🇸🇬 Singapore |
| Tax System |
Progressive OR 15% flat (whichever is lower) |
Progressive only |
| Tax-Free Threshold |
HK$132,000 (~$17,000 USD) |
S$20,000 (~$15,000 USD) |
| Lowest Rate |
2% |
0% (up to S$20k) |
| Top Marginal Rate |
17% |
24% |
| Top Rate Kicks In |
HK$200,000+ (~$25,700 USD) |
S$1,000,000+ (~$740,000 USD) |
| Standard Rate Cap |
15% flat option |
None |
Hong Kong Tax Brackets (2024/25)
| Income Band (HKD) |
Rate |
| $0 - $50,000 | 2% |
| $50,001 - $100,000 | 6% |
| $100,001 - $150,000 | 10% |
| $150,001 - $200,000 | 14% |
| Over $200,000 | 17% |
Note: Standard rate of 15% applies if it results in lower tax than progressive rates.
Singapore Tax Brackets (2024)
| Income Band (SGD) |
Rate |
| $0 - $20,000 | 0% |
| $20,001 - $30,000 | 2% |
| $30,001 - $40,000 | 3.5% |
| $40,001 - $80,000 | 7% |
| $80,001 - $120,000 | 11.5% |
| $120,001 - $160,000 | 15% |
| $160,001 - $200,000 | 18% |
| $200,001 - $240,000 | 19% |
| $240,001 - $280,000 | 19.5% |
| $280,001 - $320,000 | 20% |
| $320,001 - $500,000 | 22% |
| $500,001 - $1,000,000 | 23% |
| Over $1,000,000 | 24% |
Who Wins at Different Income Levels?
Low Income (Under $50,000 USD)
Winner: Singapore 🇸🇬
Singapore's larger tax-free threshold (S$20,000) and more gradual progression means lower taxes at this level. The 9% GST is offset by lower income tax. For foreigners, the lack of CPF contributions makes Singapore especially attractive.
Middle Income ($50,000 - $150,000 USD)
Winner: It's Close - Depends on Status
For foreigners: Singapore slightly wins due to no mandatory retirement contributions. For locals: Hong Kong edges ahead with its 15% cap starting to become relevant at higher end of this range. Both offer effective rates around 10-15%.
High Income ($200,000+ USD)
Winner: Hong Kong 🇭🇰
Hong Kong's 15% standard rate cap is a game-changer for high earners. Once your income exceeds the threshold where progressive rates would result in more than 15% tax, you simply pay 15% flat. Singapore's rates continue climbing to 24%, making Hong Kong significantly more attractive for high earners.
Ultra-High Income ($500,000+ USD)
Winner: Hong Kong 🇭🇰 (Clear Win)
At very high incomes, Hong Kong's 15% cap delivers massive savings compared to Singapore's 22-24% rates. A $1M salary would face ~$150,000 tax in Hong Kong vs ~$200,000+ in Singapore.
The Bottom Line
- Foreign workers: Singapore's no-CPF advantage often wins up to ~$150k
- High earners: Hong Kong's 15% cap wins decisively above ~$200k
- Investors: Both are excellent - neither taxes investment income
- Daily spending: Hong Kong wins with 0% GST vs Singapore's 9%
Cost of Living Consideration
While tax rates are important, cost of living significantly affects your actual purchasing power:
| Expense |
🇭🇰 Hong Kong |
🇸🇬 Singapore |
| Rent (1BR City Center) |
~$2,500-3,500/month |
~$2,200-2,800/month |
| Groceries |
Similar |
Similar |
| Dining Out |
Slightly cheaper |
9% GST + service charge |
| Transportation |
Very affordable |
Car ownership very expensive |
| Healthcare |
Affordable public system |
Affordable public system |
Hong Kong has notoriously expensive real estate, but no GST means everyday purchases are cheaper. Singapore has slightly more affordable rent but 9% GST applies to most spending.
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