United States vs United Kingdom vs Singapore

21%

Flat 21% federal corporate income tax rate enacted by the Tax Cuts and Jobs Act of 2017. State corporate taxes range from 0% to approximately 11.5% depending on the state.

19% / 25%

The main corporation tax rate is 25% for companies with profits over £250,000. A small profits rate of 19% applies to companies with profits up to £50,000. Marginal relief is available for profits between £50,000 and £250,000, resulting in an effective rate between 19% and 25%.

17%

The headline corporate tax rate is 17%. A partial tax exemption scheme provides 75% exemption on the first S$10,000 of chargeable income and 50% exemption on the next S$190,000, resulting in effective rates well below 17% for smaller companies. New startup companies enjoy additional exemptions for the first three years. Singapore does not tax capital gains.

0% / 15% / 20%

Long-term capital gains (assets held over one year) are taxed at 0%, 15%, or 20% depending on taxable income. Short-term gains are taxed as ordinary income. An additional 3.8% Net Investment Income Tax applies above certain thresholds.

10% / 18% / 20% / 24%

Capital gains tax rates for 2024-25 are 10% (basic rate) and 20% (higher/additional rate) for most assets. Residential property gains are taxed at 18% (basic rate) and 24% (higher rate). An annual exempt amount of £3,000 applies. Business Asset Disposal Relief provides a 10% rate on qualifying gains up to a £1 million lifetime limit.

0% (no capital gains tax)

Singapore does not impose a capital gains tax. Gains from the disposal of investments, shares, and property are generally not taxable. However, gains may be treated as taxable income if the taxpayer is deemed to be trading (e.g., frequent property transactions). Gains from the sale of shares in a company are not taxable if the divesting company held at least 20% for at least 24 months.

No federal VAT

The United States has no federal value-added tax or national sales tax. State and local sales taxes range from 0% to approximately 10.25% depending on jurisdiction. Five states have no state sales tax.

20% standard rate

The standard VAT rate is 20%. A reduced rate of 5% applies to domestic fuel, children's car seats, and certain other goods. A zero rate (0%) applies to most food, children's clothing, books, and newspapers. The VAT registration threshold is £90,000 of taxable turnover.

9% GST

Goods and Services Tax (GST) was increased to 9% effective January 2024 (from 8% in 2023). GST applies to most goods and services supplied in Singapore and to imported goods. Exported goods and international services are zero-rated. Financial services and residential property sales/rentals are exempt. Businesses with annual taxable turnover exceeding S$1 million must register for GST.

7.65% employee / 15.3% self-employed

FICA taxes include 6.2% Social Security tax (on earnings up to $176,100 in 2025) and 1.45% Medicare tax (no cap). Employers match both. Self-employed pay the combined 15.3% rate. An additional 0.9% Medicare surtax applies above $200,000 for single filers.

8-2% employee / 13.8% employer

National Insurance Contributions (NICs) for employees: 8% on earnings between £12,570 and £50,270, and 2% above £50,270 (2024-25 rates after the January 2024 cut). Employers pay 13.8% on earnings above £9,100. Self-employed pay Class 4 NICs at 6% on profits between £12,570 and £50,270, and 2% above that. Class 2 NICs were abolished from April 2024.

20% employee / 17% employer (CPF)

The Central Provident Fund (CPF) is mandatory for Singapore citizens and permanent residents. For employees up to age 55 earning more than S$750/month: employee contributes 20%, employer contributes 17%, totaling 37% of ordinary wages (capped at S$6,800/month). Rates decrease progressively for older workers. CPF funds are allocated across Ordinary Account, Special Account, and Medisave Account.

April 15

January 31 (online self-assessment) / October 31 (paper)

April 15 (paper) / April 18 (e-Filing)