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Businesses

 

Common filing mistakes

What you need to do
1

Declaration of Freelance,Trade, Business,Vocation Income(Form B/B1)

I am a:
- Taxi Driver
- Property Agent
- Insurance Agent
- Private Tutor
- Hawker
- Remisier
- Commission Agent


I declare my income as Employment or Other Income

You are considered as a Self-employed person.

When e-Filing:
You have to declare your income as trade income under item 3 "Trade, Business, Profession or Vocation".

When Paper Filing:

  • Form B: Complete items 6 to 9 on Page 2.
  • Form B1: Complete item 1 "Trade, Business, Profession or Vocation" of Appendix 1 and item 3 "Other Income" on Page 2 of Form B1
2 I am a Property/Insurance agent. I do not have to declare my income as my company is participating in the Auto inclusion Scheme.

As an agent earning commission, your income will not be auto-included in your assessment. You have to declare your commission under "Trade, Business, Profession or Vocation".

As you are providing a service, your Revenue is equal to your Gross Profit. Your Adjusted Profit (i.e. net profit) is equal to Turnover/Gross Profit minus Allowable Business Expenses.

3 I declare an estimated trade income as I do not keep proper records of my daily earnings/ commission/expenses.
As a self-employed person, you are required to keep proper records and accounts of your business transactions. Estimates and improper records are not acceptable. For more information, click keep proper record.
4 Declaration of Partner’s Income in Form B/B1 

I declare my partnership salary as Employment /Sole-Proprietorship Income.

You should declare your partnership salary/bonus/CPF/benefits (remuneration) as Partnership Income.

When e-Filing:
You have to declare it as ‘partner’s salary, bonus & CPF’ under item 3 "Trade, Business, Profession or Vocation" >>> “Partnership”.

When Paper Filing:
• Form B: Complete item 1b(4) on Page 2.
• Form B1: Complete item 1 "Trade, Business, Profession or Vocation" of Appendix 1 and item 3 "Other Income" on Page 2 of Form B1.

5 I do not know my share of the Partnership income, so I:
• do not declare it in my Form B; or
• declare the total Partnership Income in my Form B.
You should obtain your share of the Partnership income from the precedent partner and declare it in your Form B before submitting it.
6 My Precedent Partner has submitted the Form P, so I do not need to file my Form B or declare my share of Partnership Income in my Form B.
You are required to file your Form B to declare your share of the Partnership Income and your income from other sources, if any.
7 I declare my Partnership
Rent
income as Other Income.

You should declare your Partnership Rent income under Item 1b “Partnership”.

When e-Filing:
Item 3 "Trade, Business, Profession or Vocation" >>> “Partnership”
You have to declare it as Partner’s Other Income.

For Paper Filing:
• Form B: Complete item 1b(7) on Page 2.

• Form B1: Complete item 1 "Trade, Business, Profession or Vocation" of Appendix 1 and item 3 "Other Income" on Page 2 of Form B1.

8

Declaration of Partnership income (Form P)

Salary, bonus and CPF paid to partner can be claimed under ‘Allowable Business Expenses’.

Partners’ salary, bonus, CPF are not to be included under Allowable Business Expenses. You should enter it under the column: Partner's salary, Bonus & CPF.

9

My partner(s) had already sent in his/her Form B, so I do not need to file the Form P.

The Precedent Partner is still required to file the Form P on the partnership income.
10

Claim for Self-employed CPF Relief

I have contributed CPF as a self-employed person last year, therefore I should indicate the amount contributed in my Form B so as to qualify for the relief.

CPF relief for a self-employed is allowed automatically based on information received from CPF Board. You need not indicate your claim.

Self-employed CPF relief is allowable if :
- you have declared trade income
- you are making the contribution as a self-employed person
- your contribution was made before 31 Dec of the preceding year.

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Last Updated on 2 December 2014


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