Tax treatment of business income

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. The sole-proprietor, partner, or self-employed person who receives this income has to report the income in his/her individual Income Tax Return (Form B/B1).

The business income is added to your other sources of personal income. The total amount is then subject to individual income tax rates.

Reporting for self-employed partners

Self-employed partners are required to report in the individual Income Tax Return (Form B/B1) their:

  1. Share of partnership profit/loss; and
  2. Salary, bonus, CPF, and other benefits from the partnership.

Please check with your precedent partner on your share of income from the partnership.

If the partnership e-files the Form P by 28 Feb, the partnership allocation will be pre-filled in the respective partners' Income Tax Return. With this pre-filling initiative, the precedent partner need not separately inform the respective partners of their share of the partnership income. 

The respective partners will only need to verify the pre-filled income from 1 Mar onwards and submit their individual Income Tax Return (Form B/B1) by the due date.

To determine if you are a partner that is employed or self-employed, please refer to Am I a self-employed person.

Not declaring or under-declaring your partnership income is an omission which may render you liable for penalties under the law.

Filing Form B/B1 for self-employed partners

Mode of filingWhen can I file?How can I file my partnership income?

e-Filing

1 Mar to 18 Apr

  1. Login to myTax Portal with your Singpass or Singpass Foreign User Account.
  2. Go to “Individuals” > “File Income Tax Return”.
  3. Select “Edit My Tax Form”.
  4. Go to section: “2. Trade, Business, Profession or Vocation” > “Partnership” and click on “Update”.
  5. Report your share of partnership profit/loss and your salary, bonus, CPF, and other benefits from the partnership under “Partnership 1”.


    Note:
    Please do not enter the partnership income under “1. Employment Income and Employment Expenses: Section B” of the Form B/B1. 

  6. To declare your 2nd and subsequent partnership income sources, click on “Add Partnership” at the end of each partnership source.

Paper filing

1 Mar to 15 Apr

Form B

  1. Report your share of partnership profit/loss and your salary, bonus, CPF, and other benefits from the partnership in Page 2 of Form B > “1. Trade, Business, Profession, or Vocation” section’ > “Partnership 1".
  2. If you are a partner of more than one partnership, please complete Appendix 1 (Part 2) for Partnership 2 and 3.

Form B1

  1. Report your total income from the partnership in Page 2 of Form B1 > “Section A” > “3. Other Income”.
  2. Provide details of the income in “Appendix 1” > 1. Trade, Business, Profession or Vocation”.

Other sources of income

Report your income from all sources (e.g. sole-proprietorship business, employment, rent, other income from property, royalty, charge and estate/trust income, etc.) in the relevant sections of the individual Income Tax Return (Form B/B1).

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