Income Tax Comparison Around The World
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Migrating Out Of Singapore Because You Think The Income Tax Is Too High? Think Again

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Tax season is in full force.

And you might be thinking that you’re paying a little bit too much tax.

Singapore so expensive already… How to pay tax??

globe

Thinking of migrating out of Singapore for greener pastures with lower income tax rates? Think again…

Living and working overseas might sound really attractive, but some things are just better at home.

So before you decide which country you wish to migrate to, you might want to look at our comparison of the different income tax rates around the world.


TL;DR: Which Country Has The Lowest Income Tax?

Here’s an income tax comparison for some countries around the world. You might be shocked to learn that as Singaporeans, we do in fact pay one of the lowest income tax rates.

For ease of comparison, we’ll be looking at yearly salaries equivalent of S$100,000. All currency conversions are estimations.

CountryIncome Bracket (aprox. equivalent to SGD 100K) Income Tax
Asia
ThailandTHB2,300,000~30%^
South Korea84,000,000 KRW~24%^
Japan¥8,200,000~23%^
TaiwanNT$2,300,000~20%
Malaysia$300,000 MYR~19.7%*
Singapore$100,000 SGD5.65%
Oceania
Australia$104,000 AUD~37%^
New Zealand
$108,200 NZD~33%^
North America
USA$73,800 USD~29.08%
Canada $99,000 CAD~24.22%
Europe
Germany €66,000~42%^
United Kingdom £56,000 GBP~40%^
Netherlands €66,000~38.1%*
*Calculated based on tiered chargeable income
^Estimation based on income band

Tax Comparison Across Various Continents

Asia

CountryIncome Bracket (aprox. equivalent to SGD 100K) Income Tax
ThailandTHB2,300,000~30%^
South Korea84,000,000 KRW~24%^
Japan¥8,200,000~23%^
TaiwanNT$2,300,000~20%
Malaysia$300,000 MYR~19.7%*
Singapore $100,000 SGD5.65%
*Calculated based on tiered chargeable income
^Estimation based on income band

Out of all the countries listed in the table, Singapore has the lowest percentage at 5.65% while Thailand has the highest income tax of 30% for THB2,300,000.

thailand flag

Wondering where that Thai tax goes? Part of it goes to the Social Security Scheme in Thailand. With its first implementation in 1991, the objective of the Social Security Act is to guarantee benefits for insured persons and to relief difficulties.

Such benefits include, but are not limited to, disability pensions, old-age benefits, maternity benefits, and unemployment benefits.

south-korea flag

The country with the second highest income tax rate, in Asia, is South Korea. With an income tax rate of 24% for a yearly income of 84,000,000 KRW. Some of that tax money goes towards the Basic Old-Age Pension (BOAP). First introduced in 2008, this pension was created in reaction to the rising elderly poverty rates.

Oceania

CountryIncome Bracket (aprox. equivalent to SGD 100K) Income Tax
Australia$104,000 AUD~37%^
New Zealand
$108,200 NZD~33%^
^Estimation based on income band

australia flag

Down undah in Australia, one would have to fork out 37% of income tax for a yearly income of AUD$104,000. Some of these taxes will fund social welfare payments administered by Centrelink, a branch of the Department of Human Services, as part of the country’s social security.

North America

CountryIncome Bracket (aprox. equivalent to SGD 100K) Income Tax
USA$73,800 USD~29.08%
Canada$99,000 CAD~24.22%

usa flag

Between USA and Canada, the Americans would have to pay slightly more income tax for a yearly income of $73,800 USD. They’re forking out 29.08% as compared to 24.22% for the Canadians.

If you’re wondering where American tax dollars go, some of it will fund welfare programs, such as Medicare and Medicaid. While other tax dollars will contribute to defense and international security assistance.

Europe

Country Income Bracket (aprox. equivalent to SGD 100K) Income Tax
Germany €66,000~42%^
United Kingdom £56,000 GBP~40%^
Netherlands €66,000~38.1%*
*Calculated based on tiered chargeable income
^Estimation based on income band

Out of the three European countries listed, Germans pay the steepest amount of 42% income tax for a yearly income of €66,000.

That’s almost half an individual’s income!

germany flag

German income tax contributes to many things, from education to healthcare.

The fact that Germans pay so much is probably why they have one of the most comprehensive healthcare systems in the world. It’s also worth noting that the tax also pays for universal healthcare, which ensures everyone living in Germany has access to basic health insurance.

Conclusion

Surprised?

While there are many other considerations to factor such as population and geographical size of the country, Singapore does, in fact, have one of the lowest tax rates in the world for a first world nation.

You might wonder, what does the government do with our tax? The Singapore government, like most of the countries listed, spends most of our tax dollars in different areas such as infrastructure and education spending.

So some way or another, we would still somehow benefit from our tax contributions.

So let’s not complain too much lah.

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