<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Read Me First

<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> When To File A Tax Return

You will need to file a tax return if you have received a letter, form or SMS from IRAS informing you to file a tax return.

Even if you did not hear from IRAS, you will still need to file a tax return -

<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Frequently Asked Question

Question

My annual net trade income is $4,000 and employment income is $20,000. Do I need to file a tax return?

Answer

Yes. Although your annual net trade income does not exceed $6,000, your total annual taxable income is $24,000 which is more than the income reporting threshold of $22,000. You will need to file a tax return, even if you did not hear from IRAS informing you to do so.

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<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Voluntary Disclosure of Errors for Reduced Penalties

IRAS understands that some taxpayers may occasionally make errors in their tax returns due to lack of care or awareness of their tax obligations.

The IRAS Voluntary Disclosure Programme (VDP) encourages taxpayers who have made errors in their tax returns to come forward voluntarily, in a timely manner, to correct their errors.

IRAS is prepared to reduce penalties for voluntary disclosures which meet the qualifying conditions.

Learn More

**https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/voluntary-disclosure-of-errors-for-reduced-penalties**

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<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Qualifying Conditions for SRK

Since 1 Jan 2020 (Year of Assessment 2021), a small business that meets all of the following conditions can qualify for SRK :

  1. The business’ annual revenue must be less than $200,000 for the past two financial years
  2. The business’ assets amounted to less than $100,000 as at the end of the latest financial year
  3. The business is not in the business of investment holding or property development
  4. The business is a sole-proprietorship or partnership that is not GST-registered </aside>

<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Commission Agents

If you are part of any affiliate programs, you are considered as a self-employed commission agent. For example, you earn $20 in referral fees i.e. commission income when someone signs up for a service (e.g Endowus) from your referral link.

From YA 2020, qualifying self-employed commission agents with annual gross commission income of up to $50,000 can opt to claim a deemed amount of expenses based on 25% of their income.

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Educational Circular from IRAS

Essential Tax Information for Self-Employed Commission Agents.pdf

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<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Compulsory Contributions To Medisave

As a self-employed person, you are required to make compulsory contributions to your Medisave Account as long as you are a Singapore Citizen or Permanent Resident, and your net trade income exceeds $6,000 per annum.

You will receive the Notice of Computation (NOC) of CPF Contributions from IRAS if your assessed net business income exceeds $6,000.

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Disclaimer

I am not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this eResource is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.