Business income is income derived from carrying on a trade, business, profession, or a vocation. Business income is taxable in the sole-proprietor's, partner's, or self-employed person's name. Therefore, a sole-proprietor, partner, or self-employed person who receives this income has to report the income in his individual income tax return.
The business income will be added to all other personal income. The total is then subject to personal income tax rates.
You have to report in the Individual Income Tax Return (Form B or Form B1):
- your share of partnership profit/loss
- your salary, bonus, CPF, and other benefits from the partnership
Please check with your precedent partner on your share of income from the partnership. Not declaring or under-declaring your partnership income is an omission which may render you liable for penalties under the law.
- Completing Form B
You need to report your share of partnership profit/loss and your salary, bonus, CPF, and other benefits from partnership in the 'Trade, Business, Profession, or Vocation' section under 'Partnership 1'. If you are a partner of more than one partnership, you have to report the income in Appendix 1.
- Completing Form B1
You need to include your total income from the partnership in the 'Other Income' section and give the details of the income in Appendix 1.
Other sources of income
You have to report your income from all sources (for example: sole-proprietorship business, employment, rent, other income from property, royalty, charge, estate/trust income) in the relevant sections of the Individual Income Tax Return (Form B or Form B1).
To help you in filing your tax, there are a few modes of filing available:
Please submit your completed Income Tax Return to us by 15 April. If you e-File, you have up to 18 April to do so.
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