Which Asian financial center is better for your business? We break down the key differences in taxation, ease of business, and market access.
Both cities offer competitive corporate tax rates, with Hong Kong having advantages in areas like tax on dividends and offshore income
Singapore offers a broader range of tax incentives and exemptions for business development
Hong Kong remains a top choice for businesses with ties to mainland China due to proximity and trade links
Singapore serves as a gateway to Southeast Asia, India and ASEAN markets
Both offer relatively simple company registration processes
Singapore requires at least one local director, while Hong Kong allows directors from any nationality
| Tax Type | Singapore | Hong Kong |
|---|---|---|
| Corporate Income Tax | 17% | 16.5% |
| Dividend Tax | Taxed in certain cases | Not taxed |
| Offshore Income | Taxed when remitted | Not taxed |
| Capital Gains Tax | No (with exceptions) | No |
| VAT/GST | 9% GST | No VAT/GST |
| Tax System | Complex with incentives | Simple & straightforward |
Choose Singapore if: You're looking to expand into Southeast Asia, India, or ASEAN markets. Singapore offers a streamlined regulatory framework, strong innovation focus, and comprehensive tax incentives for business development.
Choose Hong Kong if: You have business ties to mainland China or want to leverage its proximity and trade links. Hong Kong offers a simpler tax system, no VAT/GST, and more flexible director requirements.