Singapore income tax season YA2023
It is the time of the year to file income tax again for YA2023. This is a complete guide on how to file income tax return for self-employed person in Singapore, including sole-proprietor and individual partner.
How to define a self-employed person in Singapore
You are self-employed when you own a business and work for yourself. In Singapore, a self-employed person is usually a sole-proprietor or a partner in a partnership.
As a self-employed,
- You inject capital investment into your business.
- You earn by either selling goods or providing services under a contract for service.
- You incur costs in managing your business.
- You are in charge of the operations of your business, from hiring a worker to managing the expenses.
- You are not paid a regular wages like an employee.
Examples of self-employed person:
- Sales consultant (insurance, real estate, etc.)
- Hawker owner
- Taxi driver
- Small/ online business owner
How to define a partnership in Singapore
A partner in a partnership who is registered with the Accounting and Corporate Regulatory Authority (ACRA) is also a self-employed person.
In some cases, a partner can also be concurrently employed under an employment contract by the partnership. A partner under this scenario is an employee and not regarded as self-employed.
How to submit income tax for self-employed person in Singapore
Follow the steps below to file income tax for sole proprietors and individual partners under Form B/B1:
- Prepare your trade income. Refer to this page on to how to calculate your trade income. You will need to prepare statement of accounts and keep record of your business transactions for at least 5 years.
- Depending on your revenue, you will need to report the following:
- For revenue of $200,000 or less, report 2-line statement: Revenue and Adjusted Profit/Loss
- For revenue of more than $200,000 and less than $500,000, report 4-line statement: Revenue, Gross Profit/Loss, Allowable Business Expenses and Adjusted Profit/Loss
- For revenue of $500,000 or more, report 4-line statement and submit a set of certified statement of accounts and adjusted profit/loss computation
- If you are filing Form B, enter the trade income details under “Trade, Business, Profession or Vocation”, together with salary, bonus, CPF and other benefits.
- If you are filing Form B1, enter the trade income details under ‘Other Income’ section and give the details of the income in Appendix 1.
- Tax will be calculated based on the submitted business income at individual personal income tax rates.
When is the deadline for filing income tax for self-employed person for YA2023
If you are e-filing, the deadline is 18 April 2023. If you are paper filing, the deadline is 15 April 2023.