🇸🇬 vs 🇦🇪

Singapore vs UAE Tax Comparison 2025

Complete comparison of two premier low-tax jurisdictions: Singapore's progressive system vs UAE's zero personal income tax model

Quick Overview

Key differences between Singapore and UAE tax systems at a glance

🇸🇬 Singapore

  • 📊 Tax Rates: 0% - 24% (progressive)
  • 🏛️ System: Progressive income tax
  • 💼 CPF Contributions: 20% employee + 17% employer
  • 📅 Tax Year: January - December (prior year)
  • 📋 Filing Deadline: April 15
  • 💰 Tax-Free: First S$20,000
  • 🏢 Corporate Tax: 17% flat

🇦🇪 United Arab Emirates

  • 📊 Tax Rates: 0% personal income tax
  • 🏛️ System: No personal income tax
  • 💼 Social Security: None for expats
  • 📅 Tax Year: Not applicable
  • 📋 Filing: Not required for individuals
  • 💰 Tax-Free: 100% of income
  • 🏢 Corporate Tax: 9% (since 2023)

Detailed Tax Comparison

Side-by-side breakdown of tax rates, contributions, and costs

Category 🇸🇬 Singapore 🇦🇪 United Arab Emirates
Personal Income Tax 0% - 24% progressive
Top rate at S$1M+ income		 0% personal income tax
No filing required
Tax-Free Threshold First S$20,000 tax-free
Then progressive rates		 100% tax-free
All personal income
Retirement Savings CPF: 20% employee + 17% employer
Mandatory savings scheme		 No mandatory contributions
End-of-service gratuity for some
Social Security Included in CPF contributions
Healthcare, retirement, housing		 None for expatriates
Private insurance recommended
Corporate Tax 17% flat rate
Partial exemptions for small businesses		 9% on profits >AED 375k
Introduced June 2023
Capital Gains Tax No capital gains tax
On personal investments		 No capital gains tax
No tax on investments
VAT/GST 9% GST (since 2024)
Previously 8%		 5% VAT
Introduced 2018
Property Tax Property tax on value
Annual, varies by type		 No property tax
Municipality fees only
Wealth/Inheritance Tax No wealth or inheritance tax
Clean exit		 No wealth or inheritance tax
Islamic law may apply

💡 Key Insight: Take-Home Pay

For a $100,000 / S$135,000 / AED 367,000 salary:

  • Singapore: ~7% income tax + 20% CPF (savings) = 73% take-home, 20% forced savings
  • UAE: 0% income tax + 0% deductions = 100% take-home pay

Note: Singapore's CPF is not a "tax" per se - it's retirement savings that belongs to you. UAE offers full take-home but no forced savings. Total compensation consideration matters.

Pros and Cons

Advantages and disadvantages of each tax system

🇸🇬 Singapore

Advantages

  • Low income tax rates (0-24% max)
  • CPF retirement savings build wealth
  • No capital gains tax
  • Excellent healthcare included in CPF
  • Strong rule of law and stability
  • Strategic Asian business hub
  • World-class infrastructure

Disadvantages

  • 20% CPF contribution reduces take-home
  • Higher GST (9% vs UAE's 5%)
  • Property tax and high housing costs
  • Income tax filing required annually
  • Higher cost of living overall
  • Car ownership extremely expensive

🇦🇪 United Arab Emirates

Advantages

  • 0% personal income tax (unbeatable)
  • 100% take-home pay
  • No tax filing or compliance
  • Lower VAT (5% vs 9%)
  • No property tax
  • No capital gains tax
  • Strategic Middle East location
  • Luxury lifestyle accessibility

Disadvantages

  • No forced retirement savings system
  • Higher cost of living in Dubai/Abu Dhabi
  • Private healthcare costs can be high
  • Less public transport infrastructure
  • Visa tied to employment (less flexible)
  • Requires self-discipline for savings
  • Corporate tax now 9% (new in 2023)

Which is Better For You?

It depends on your income level, career stage, and savings discipline

💰 Young Professionals ($50k-100k)

Winner: UAE

  • UAE: 100% take-home maximizes short-term cash
  • Singapore: CPF reduces liquidity
  • UAE better for aggressive savers who invest independently

📊 Mid-Career ($100k-200k)

Winner: Depends on priorities

  • UAE: Higher take-home for lifestyle/savings
  • Singapore: CPF builds retirement nest egg
  • Singapore better for long-term residents

🏆 High Earners ($200k+)

Winner: UAE (significantly)

  • UAE: Save 15-20% vs Singapore
  • Singapore: Tax rate reaches 22-24%
  • UAE's 0% tax unbeatable for high income
  • Difference can be $30k-50k+ annually

The Verdict

UAE wins on pure tax efficiency, but Singapore offers forced savings. Key considerations:

  • Maximum take-home: UAE wins hands down - 0% vs up to 24% in Singapore
  • Retirement planning: Singapore's CPF forces discipline; UAE requires self-control
  • High earners: UAE saves significantly more - no tax on $200k+ vs 20%+ in Singapore
  • Long-term wealth: Both excellent - no capital gains or inheritance tax
  • Quality of life: Both world-class; Singapore more structured, UAE more liberal
  • Cost of living: Both expensive; Singapore higher transport costs, UAE higher housing

Bottom line: UAE offers maximum take-home pay (best for high earners and disciplined savers). Singapore offers forced savings through CPF (best for those wanting structured retirement planning). Both are among the world's best low-tax jurisdictions.

Calculate Your Exact Tax Burden

Use our free calculator to compare your specific situation in both countries

Calculate Singapore & UAE Taxes Singapore Tax Guide UAE Tax Guide

Compare Other Countries

View All Tax Guides →