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Singapore and the UAE both tax business profit at a low rate and both charge a value-added tax. The numbers differ. In Singapore, IRAS taxes a company at a flat 17% and ACRA charges S$315 to register. In the UAE, the Federal Tax Authority applies 0% to taxable income up to AED 375,000 and 9% above that. This page puts the two side by side using official sources, read on . Amounts are in the currency each government uses, and we do not convert them.
How do Singapore and the UAE compare at a glance?
| Point | Singapore | UAE | Official source |
|---|---|---|---|
| Company registration fee | S$315 (S$15 name, S$300 registration) | Depends on emirate and licence, not quoted here | ACRA; UAE government portal |
| Corporate tax | 17% flat on chargeable income | 0% up to AED 375,000, 9% above | IRAS; UAE government portal |
| Early-stage relief | Start-up exemption on the first S$100,000 and next S$100,000 for three years | Free zone incentives if rules are met | IRAS; UAE government portal |
| Value-added tax | GST 9%, required above S$1 million turnover | VAT 5%, required above AED 375,000 | IRAS; Federal Tax Authority |
| Tax authority | IRAS | Federal Tax Authority | Both sites |
| Local director | One ordinarily resident director | Varies by licence, not quoted here | ACRA |
| Company registrar | ACRA through BizFile | Emirate or free zone authority | ACRA |
How do corporate tax rules differ?
Singapore applies one flat 17% to chargeable income. Early-stage companies can cut the bill with the start-up exemption, which runs for three years and has a shareholder limit. Our corporate tax page has the figures.
The UAE government portal states 0% on taxable income up to AED 375,000 and 9% above. A different rate applies to some large multinational groups. Businesses must register with the Federal Tax Authority. The portal also says free zone businesses keep their tax incentives if they comply with the regulations and do not operate on the mainland. The conditions sit in each free zone's own terms, so read them before you rely on a 0% rate.
How do VAT and GST compare?
The UAE charges 5% VAT on taxable supplies. The Federal Tax Authority says you must register if taxable supplies and imports go over AED 375,000 in 12 months, or are expected to in the next 30 days. A voluntary threshold of AED 187,500 exists, and you apply within 30 days of the duty to register.
Singapore's GST is 9%. IRAS says you register if taxable turnover passes S$1 million at the end of a calendar year, or you expect it to in the next 12 months. Our GST page gives deadlines and penalties.
The rates look far apart, but the effect on your own margin depends on whether you sell to businesses that can reclaim the tax or to consumers who cannot.
What does it take to register in Singapore?
ACRA charges S$315: S$15 to apply for the name and S$300 to register the company. The company needs an ordinarily resident director aged 18 or older and a secretary who is an individual and a different person from the sole director. Its registered office is a Singapore address that stays open to the public in business hours. The private limited company page covers duties and deadlines.
Foreign owners often use a nominee director or an Employment Pass. See company registration for foreigners.
What do we not know about the UAE side?
Setting up in the UAE depends on the emirate, whether you pick a mainland or a free zone licence, and the business activity. We have not verified registration fees, ownership rules, visa quotas or office requirements on an official page for this guide, so we leave them out. Check with the relevant licensing authority or the UAE government portal. Anyone quoting a flat cost for "a Dubai company" is simplifying.
What should a founder ask before committing?
Put these questions to an adviser or the licensing body, in writing, before you pay anyone:
- Which licence or structure fits my activity, and what is the full cost in the first year?
- Who must be a resident, a director, a manager or a secretary, and can a provider fill the role?
- Which tax registrations apply to me, and by what date?
- What does my bank need to see, and in which country is the account held?
Answers in writing protect you if a quote changes later.
How do you decide?
- Customers. Where will your invoices come from? Tax and VAT follow supply, so look at both ends.
- Substance. Both governments look at where people and decisions sit. A name on paper rarely settles it.
- Staff and visas. Singapore passes sit with MOM. See the Employment Pass guide.
- Banking. Banks make their own decisions. See the business bank account page.
- Tax advice. Ask a licensed adviser to run your actual figures before you move a business.
The same comparison for another city is on the Singapore vs Hong Kong page.
Independent guide, not a regulator
We are an independent guide, not ACRA, IRAS, the Federal Tax Authority or a provider. Each rule here comes from an official page with the read date shown. Singapore providers pay us when a request from our form becomes a client. The how we earn page has the detail.
Choosing Singapore? Use the quote form on this page and the firms we pass it to will send their own prices.
Sources
- ACRA, Choosing a business structure, https://www.acra.gov.sg/register/business/choosing-business-structure/ (S$315, company rules)
- ACRA, Appointing company directors and other key officers, https://www.acra.gov.sg/register/business/registering-different-business-structures/local-company/appointing-company-directors-other-key-officers/ (resident director, secretary)
- IRAS, Corporate income tax rates, https://www.iras.gov.sg/quick-links/tax-rates/corporate-income-tax-rates (17%, exemptions)
- IRAS, Do I need to register for GST, https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/gst-registration-deregistration/do-i-need-to-register-for-gst (9%, S$1 million)
- UAE government portal, Corporate tax, https://u.ae/en/information-and-services/finance-and-investment/taxation/corporate-tax (0%, 9%, AED 375,000, free zones)
- Federal Tax Authority, Registration for VAT, https://tax.gov.ae/en/taxes/Vat/vat.topics/registration.for.vat.aspx (5%, AED 375,000, AED 187,500, 30 days)
