Asia has no single low-tax model. Brunei has no personal income tax at all. Hong Kong and Macau tax only income from local work. Singapore and Malaysia tax local income at progressive rates but generally leave foreign income alone. Thailand and Japan tax foreign income only when it is brought into the country, under rules that have recently tightened in Thailand's case.
For expats and entrepreneurs, the result is a set of low-tax countries in Asia where the tax bill depends less on the headline rate and more on where income comes from and where it is received. A consultant paid by foreign clients, a retiree living on a foreign pension and a founder drawing dividends from an overseas company can each get a very different answer in the same country.
This guide compares the main options as of October 2026. Gulf states such as the UAE and Qatar are covered separately in our guide to tax-free countries in the Middle East.
Key takeaways
- Hong Kong, Macau and Taiwan tax individuals mainly on local-source income, with top rates of 17% or less in Hong Kong and Macau.
- Singapore and Malaysia generally do not tax foreign income received by resident individuals, though Malaysia's exemption runs only to the end of 2036.
- Thailand taxes residents on foreign income earned from 2024 onward when it is brought into Thailand.
- The Philippines taxes resident foreigners only on Philippine-source income, and Japan taxes newer foreign residents on foreign income only when it is paid in or sent to Japan.
- Low tax on foreign income does not cover work done locally, and it does not end tax residence in a person's previous country.
Four ways Asian countries treat foreign income
It helps to sort the region by how it handles income from abroad, because that is usually what matters most to people who move.
- No personal income tax. Brunei does not tax individuals' income.
- Territorial. Hong Kong and Macau tax income from work and business carried on locally. Taiwan's regular income tax also covers only Taiwan-source income.
- Foreign income exempt, with exceptions. Singapore and Malaysia tax residents on local income and exempt most foreign income received by individuals. The Philippines taxes resident foreigners on local income only.
- Remittance basis. Thailand taxes foreign income when it is brought into the country. Japan does the same for foreign residents in their first years.
Low-tax countries in Asia at a glance
| Country | Top resident rate (2026) | Foreign income of residents | Point to know |
|---|---|---|---|
| Brunei | None | Not taxed | No personal income tax |
| Hong Kong | 17% (or 15-16% standard rate) | Not taxed | Territorial; capital gains generally untaxed |
| Macau | 12% | Not taxed under professional tax | Tax on Macau employment income only |
| Singapore | 24% | Generally not taxed, even if received | Exceptions for partnerships and some employment |
| Malaysia | 30% | Exempt when received, through 2036 | 2% tax on large dividends from 2025 |
| Philippines | 35% | Not taxed for resident foreigners | Citizens resident there are taxed worldwide |
| Taiwan | 40% | Outside regular tax | Basic income tax can catch large foreign income |
| Thailand | 35% | Taxed when brought in | Applies to income earned from 2024 |
| Japan | 45% plus surtax | Taxed if paid in or sent to Japan (newer residents) | Five-years-in-ten test |
Singapore
Singapore taxes income that arises in or is derived from Singapore. Resident individuals pay progressive rates that reach 24% on income above S$1 million. Overseas income received in Singapore, including money paid into a Singapore bank account, is generally not taxable and does not need to be declared, according to IRAS guidance on income received from overseas.
The exceptions matter. Foreign income received through a Singapore partnership is taxable, and so is pay for work done in Singapore even when the employer is foreign. Companies pay a flat 17% corporate tax, and a 15% domestic top-up tax applies to large multinational groups from 2025.
Hong Kong
Hong Kong taxes on a territorial basis. Salaries tax applies to employment income sourced in Hong Kong, and residence or citizenship does not decide liability. For 2025/26, net income is taxed at progressive rates from 2% to 17%, but the total is capped at a standard rate of 15% on the first HK$5 million and 16% above that, according to PwC's Hong Kong summary.
For businesses, profits tax is 8.25% on the first HK$2 million of profit and 16.5% above it. Capital gains are generally not taxed. Since 2023, however, some foreign-sourced dividends, interest, disposal gains and IP income received by multinational group entities can be taxed unless they meet economic substance or similar tests.
Macau and Brunei
Macau's professional tax applies to income from employment in Macau. For 2026, the first MOP 144,000 is taxed at 0%, and rates rise to a top of 12% on income above MOP 424,000.
Brunei does not impose personal income tax on individuals. It is a small market with limited residence routes for most foreigners, so it is rarely a practical choice for nomads.
Malaysia
Malaysia taxes resident individuals at rates up to 30%. Foreign-sourced income received in Malaysia by resident individuals may be exempt from January 1, 2022 to December 31, 2036, subject to conditions, according to PwC's Malaysia summary. The main exclusion is income from a partnership business in Malaysia.
From 2025, Malaysia also charges 2% on annual dividend income above MYR 100,000 from Malaysian companies, after eligible deductions. Real property gains tax applies to sales of Malaysian property. For residence, remote workers often look at the DE Rantau Nomad Pass, while longer-term residents look at the MM2H program.
Thailand
Thailand changed its approach in 2024. Foreign income earned by a Thai tax resident from January 1, 2024 is taxable when it is brought into Thailand, in the same year or any later year, according to PwC's Thailand summary. Before that, income brought in during a later year could escape tax. Rates reach 35% on net income above THB 5 million.
The Long-Term Resident (LTR) visa softens this for some people. The Board of Investment's LTR program lists four categories: wealthy global citizens, wealthy pensioners, work-from-Thailand professionals and highly skilled professionals. Its privileges include a tax exemption for overseas income and a 17% income tax rate for highly skilled professionals, with eligibility depending on the category. The visa runs for five years and can be extended for five more. Remote workers who do not meet LTR thresholds often look at the Destination Thailand Visa instead, which is a visa rather than a tax regime.
The Philippines
The Philippines taxes resident citizens on worldwide income. Resident foreigners, and Filipino citizens living abroad, are taxed only on Philippine-source income. Compensation above PHP 8 million a year is taxed at 35%. For a foreign national who lives in the Philippines and earns from abroad, the foreign income is outside Philippine income tax, although work performed while in the country can raise sourcing questions.
Japan and Taiwan
Japan is a high-tax country, with a top national rate of 45% plus a 2.1% surtax and local inhabitant tax. It has one feature that matters for newcomers. A foreign national who has lived in Japan for five years or less in the past ten is a non-permanent resident. Non-permanent residents pay tax on Japanese-source income, and on foreign income only to the extent it is paid in Japan or sent to Japan, according to PwC's Japan summary.
Taiwan's regular income tax applies to Taiwan-source income, with a top rate of 40%. A separate basic income tax adds foreign income back in for residents whose foreign income reaches TWD 1 million and whose basic income exceeds TWD 7.5 million. In that case, 20% applies to the amount above TWD 7.5 million if it is more than the regular tax.
Corporate tax for entrepreneurs
Personal tax and company tax are separate questions. A founder living in Singapore or Hong Kong may pay little personal tax on foreign income, but a company managed from there can be taxed there. The 15% global minimum tax now applies in both places to multinational groups with revenue of at least EUR 750 million, which leaves most small businesses outside its scope. Our guide on where to base an online business covers the factors that usually matter more than the headline rate.
What to check before moving
- Residence tests. Many countries use a 183-day threshold, but most also look at homes, family and economic ties. Our explainer on the 183-day rule covers why day counts are not the whole story.
- Where work is done. Exemptions for foreign income usually do not cover work done while physically in the country.
- The previous country. A new residence does not on its own end tax residence elsewhere. That depends on the rules of the country a person leaves and any tax treaty.
- Visa status. Tax residence and the right to live in a country are different. Many Asian countries offer digital nomad or long-stay visas with their own conditions.
For a wider view of how source-based systems work, see our list of territorial tax countries.
Frequently asked questions
Which country in Asia has no income tax?
Brunei does not impose personal income tax on individuals. In Western Asia, the Gulf states such as the UAE, Qatar and Bahrain also have no personal income tax on salaries, although Oman plans one for high earners from 2028.
Is Singapore tax-free for foreigners?
No. Singapore taxes income from work and business in Singapore at rates up to 24%. What it generally does not tax is overseas income received by individuals, subject to exceptions such as income received through a Singapore partnership.
Does Thailand tax foreign income in 2026?
Yes, when it is brought into Thailand. Foreign income earned by Thai tax residents from January 1, 2024 is taxable when remitted, in the year it is earned or later. Some LTR visa holders have an exemption for overseas income.
Does Malaysia tax foreign income?
Foreign-sourced income received by resident individuals may be exempt until December 31, 2036, subject to conditions. Income from a partnership business in Malaysia is excluded.
Is Hong Kong a tax haven?
Hong Kong is a low-tax, territorial jurisdiction rather than a no-tax one. It taxes local salaries at up to 17% and local business profits at up to 16.5%, and it has tightened the rules on foreign income received by multinational group companies.
Important: This article is general information, not tax, legal or financial advice. Rules change often and depend on your personal circumstances. Speak with a qualified professional in each relevant country before you act.