Which country has the best private equity salary after tax?
If you took the top PE firms in each country, which people at the top would make the most after tax?
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Singapore (24% top bracket), Hong Kong (17% top bracket) and maybe the UAE depending on the shop (USD + no income tax). In addition to lower income tax, there is also an “expat adjustment” (basically more comp so talent globally will move there).
The folks I know who went abroad earn more - on a net basis - in 1 year than they did in the 2 to 3 years in NYC. Good international community, great food and very safe (you can walk alone at night as a single woman in public transit without having to worry about getting stabbed). I think the general plan for them is to retire by mid 40s and come back to the states.
So to clarify, an MD at top Singapore PE firm would generally make more than top firms in other countries?
With all else equal, that’s what I’d expect on a net basis given the significantly lower income tax rate + expat bonus. But then again there is a very large spectrum of pay at the top for PE (and it’s usually private/not well disclosed).
But again, this is just my own professional circle. Others may have seen different things.
Worth mentioning that the 24% top bracket only kicks in for income above $1m SGD (c750k USD) and that there's no capital gains tax, meaning that the total tax burden for high-earners is actually much lower than it seems based on the top bracket alone - just throwing it out since I've seen people ask why SG is considered a low-tax jurisdiction when a superficial glance doesn't show the tax here being all that attractive compared to HK/UAE.
With that said, I'm surprised to hear that post-tax income is supposedly so much higher than NYC - my general impressions of high finance here is that salaries are also quite depressed compared to US across all levels/fields and hence the impact of the lower tax rates are largely mitigated.
how much are we talking about? I for some reason thought that tax rates don't matter as much as the salary itself and the salary is based on deals and fund sizes which are based on the market and economy which are magnitudes better in US than anywhere else in the world.
USA
This is honestly what I think as well, just based on how much higher gross salaries are in the USA compared to everywhere else.
A close high school friend of mine is (now) a fairly senior recruiter at Henkel: US gross comp really isn’t that much higher than SG/HK/UAE.
Miami. 37% income tax but 24% capital gains. US salaries typically material premium to Singapore / HK
US but in no state income state taxes like Florida or Texas. US salaries are much higher than no-tax countries - and unless you totally renounce your US citizenship you're still going to have to pay US tax anyway
Defo NOT the UK - worst of both worlds here.
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