Japan is Singapore’s third-largest bilateral trade partner, and the two countries share an unusually deep set of institutional ties — from the Japan-Singapore Economic Partnership Agreement (JSEPA), the world’s first bilateral Economic Partnership Agreement signed by Japan, to a bilateral Work and Holiday Programme covering citizens aged 18 to 30. Approximately 37,000 Japanese nationals reside in Singapore today, making it one of the most established expatriate communities in the city-state.
For Japanese professionals relocating to Singapore in 2026, the case rests on a combination of factors: a top income tax rate of 24 per cent compared with Japan’s 55 per cent (45 per cent national tax plus 10 per cent local inhabitant’s tax), a safe low-crime environment, strong international schooling options including a Japanese-medium school, and a regional headquarters culture that puts Singapore at the centre of Southeast Asia strategy. This guide covers the right work pass for your profile, how COMPASS affects your Employment Pass application, the Japan-Singapore tax comparison, family pass entitlements, and exit tax considerations when leaving Japan.
Which Singapore Work Pass is Right for Japanese Professionals?
Employment Pass — the standard route
The Employment Pass (EP) is the primary work authorisation for Japanese professionals relocating to Singapore with a Singapore employer sponsor. Per the Ministry of Manpower (MOM), the qualifying salary for a new EP application in August 2026 is SGD 5,600 per month for most sectors and SGD 6,200 per month for Financial Services. These thresholds increase with age: an applicant in their early forties needs approximately SGD 8,500 per month (general sector) to meet the age-progressive benchmark.
From 1 January 2027: Budget 2026 confirmed the EP qualifying salary rises to SGD 6,000 (SGD 6,600 for Financial Services) for new applications. Renewals follow the higher threshold from 1 January 2028. Japanese professionals in salary negotiation now should target the 2027 figure.
Work and Holiday Pass — for Japanese aged 18 to 30
Under the bilateral Singapore-Japan Work and Holiday Programme, Japanese citizens aged 18 to 30 may apply for a Work and Holiday Pass allowing up to 12 months in Singapore without a prior employer sponsor. This is a useful pathway for Japanese professionals who wish to explore the Singapore job market, build a professional network, and seek employer sponsorship for a full EP before committing to a fixed-term role. Applications are made directly to MOM.
ONE Pass — for senior Japanese executives and founders
If you earn or have recently earned a fixed monthly salary of at least SGD 30,000, Singapore’s Overseas Networks and Expertise (ONE) Pass may be the optimal pathway. The ONE Pass is valid for five years, is not subject to COMPASS, and allows concurrent employment with multiple Singapore entities — making it particularly attractive for Japanese executives and entrepreneurs establishing Singapore as their regional base. See our ONE Pass: Who Qualifies in 2026 guide.
COMPASS and Japanese EP Applicants
Since September 2023, every Employment Pass application has been assessed under the Complementarity Assessment Framework (COMPASS) — a 40-point scorecard covering salary relative to local peers (C1), qualifications (C2), nationality diversity of your employer’s foreign workforce (C3), and the employer’s support for local workforce development (C4).
Japanese applicants typically perform well on C2 (qualifications): degrees from Japanese national and prestigious private universities are generally assessed in the “good” band by MOM. Japanese nationals are a common EP-holding nationality in Singapore, which means the C3 (nationality diversity) attribute may generate fewer points for employers whose EP workforce is already heavily Japanese. Employers of Japanese candidates should review their current nationality composition in EP Online before applying, and consider whether restructuring the profile with candidates from other nationalities might strengthen aggregate COMPASS performance across applications.
Singapore vs Japan: The Tax Comparison in 2026
The tax differential between Japan and Singapore is one of the most compelling financial reasons for senior Japanese professionals and business owners to relocate. Japan’s combined top marginal tax rate — 45 per cent national income tax plus 10 per cent local inhabitant’s tax — reaches 55 per cent on income above approximately JPY 40 million (approximately SGD 360,000). By comparison, Singapore’s top rate is 24 per cent, applied to chargeable income above SGD 1 million, with effective rates for most professionals between 8 and 18 per cent.
Singapore income tax for Japanese professionals
Per the Inland Revenue Authority of Singapore (IRAS), Singapore tax residents pay progressive rates from 0 per cent on the first SGD 20,000 to 24 per cent on income above SGD 1 million. An EP holder becomes a Singapore tax resident after being present or employed in Singapore for at least 183 days in the preceding calendar year. Singapore levies no capital gains tax, no inheritance tax, no dividend withholding tax at the individual shareholder level, and no estate duty. For EP holders and their employment income, there is no equivalent of Japan’s local inhabitant’s tax.
For more on how the Singapore tax framework applies to your situation, see our Singapore personal income tax guide for EP holders.
Breaking Japanese tax residency — and the Japan-Singapore DTA
Japan treats individuals as tax residents if they maintain a domicile or residence in Japan for one year or more. To cease Japanese tax residency, you must establish your habitual abode outside Japan — typically by spending fewer than 183 days in Japan in the relevant tax year and severing domestic ties (terminating employment, releasing property, deregistering at the ward office, and so on). From the date residency ceases, Japanese-source income (such as rental income from a Japan property) remains taxable in Japan as non-resident income.
The Singapore-Japan Double Taxation Agreement (DTA) prevents the same income from being taxed in full by both countries. Under the DTA, employment income earned in Singapore is taxable only in Singapore (where you work), not in Japan — provided you have effectively ceased Japanese residency. Japanese nationals should obtain a Certificate of Residence from IRAS if their Japanese bank or employer requests confirmation of Singapore tax status.
Japan exit tax on financial assets
Japan imposes an exit tax on individuals who have held large financial assets (securities, derivatives) exceeding JPY 100 million (approximately SGD 900,000) and who cease to be Japanese tax residents. The exit tax is levied as if those assets were disposed of at market value on the day of departure. Individuals relocating to a DTA partner country (including Singapore) may apply for a five-year deferral of the exit tax, provided security is posted with Japan’s National Tax Agency (NTA). Japanese nationals with substantial securities portfolios should seek specialist Japanese tax advice before finalising their Singapore relocation timeline.
Bringing Your Family: Dependant’s Pass Entitlements
Japanese EP holders earning SGD 6,000 or more per month may sponsor their spouse and unmarried children under 21 on a Dependant’s Pass (DP). DP holders who wish to work in Singapore must hold their own work pass — the DP Letter of Consent route was substantially narrowed in 2024, so EP-sponsored spouses who plan to work should apply for their own S Pass or EP, ideally before or shortly after arriving in Singapore. For EP holders earning below SGD 6,000, the spouse may apply for a Long Term Visit Pass (LTVP) under specific eligibility conditions.
Parents of the EP holder may apply for a Long Term Visit Pass (LTVP for parents), subject to the EP holder earning above the relevant income threshold. For a complete breakdown of family pass options, school enrolment, housing, and cost of living, see our relocating to Singapore as a family guide.
Japanese School and Community in Singapore
Japanese families relocating to Singapore benefit from a well-established community infrastructure. The Japanese School Singapore (JSS) on Clementi Road operates the Japanese national curriculum from Primary 1 through Lower Secondary, with approximately 3,000 students enrolled. Waiting lists exist for popular year groups, so enrolment enquiries should be made at least six months before the intended entry date, and ideally at the same time as visa applications are initiated.
For families preferring an international curriculum (IB or British A-Levels), a number of Singapore’s established international schools — including United World College South East Asia (UWCSEA) and Tanglin Trust School — have Japanese student communities and Japanese language support programmes. Lead times of 12 months or more are common for oversubscribed year groups.
Cost of Living: Singapore vs Japan
Singapore’s housing market for expatriates is active. Three-bedroom apartments in Clementi, Buona Vista, and Holland Village — areas popular with Japanese families for their proximity to JSS — typically rent for SGD 5,000 to SGD 9,000 per month. Tokyo’s equivalent expat-grade residential market is broadly comparable at the upper end, but Singapore’s transport infrastructure and proximity to nature reserves make the residential proposition different in character. For current cost benchmarks across housing, education, healthcare, and daily living, see our cost of living in Singapore for expats guide.
Employers: IR21 Tax Clearance for Japanese Staff Returning to Japan
Singapore employers who are seconding Japanese staff back to Japan, or who have Japanese EP holders resigning and departing Singapore, must file Form IR21 with IRAS for tax clearance no later than one month before the employee’s last day in Singapore. For a full explanation of the timeline and penalties for non-compliance, see our IR21 Tax Clearance guide.
How Little Big Employment Agency Can Help
Navigating Singapore’s EP framework, COMPASS scoring, Japan-Singapore DTA implications, and the Japan exit tax transition requires specialist guidance. Singapore Employment Agency — the consumer brand of MOM-licensed Little Big Employment Agency Pte Ltd (Licence 19C9790) — assists Japanese professionals and their Singapore employers with Employment Pass, ONE Pass, and Dependant’s Pass applications from eligibility assessment through MOM submission and appeals. Contact us at +65 8501 7133 or [email protected].
For Singapore company incorporation and corporate secretarial services to support your Japan-Singapore business operations, contact Raffles Corporate Services.
— The Editorial Team, Little Big Employment Agency