Filing responsibilities of self-employed persons (including individual partners)
All self-employed persons, including partners of a partnership, must report income earned from business activities as their business income, not as salary. Self-employed individual partners, including the precedent partner, must file Form B/B1 and report their share of the partnership profit/loss as part of their total personal income accordingly.
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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.
Tax Filing for Self-Employed Persons
As a Self-Employed Person (SEP), you are required to submit an Income Tax Return if you meet any of these criteria in the preceding calendar year:
- Your total annual income is more than $22,000; or
- Your self-employment income annual net profit exceeds $6,000; or
- You are a non-resident who derived income from Singapore
When filing your Income Tax Return
- Declare your self-employment income under “Trade, Business, Professional or Vocation” section
- Prepare a 2-line/ 4-line statement:
- Fill in the “2-Line Statement” if your revenue before any deductions is $200,000 or less
- Fill in the “4-Line Statement” if your revenue before any deductions is more than $200,000.
Please refer to e-Filing your Income Tax Return for the step-by-step instructions on e-Filing.
Keeping proper records and accounts
SEPs are required to keep full and accurate records and accounts of all business transactions from the start, and retain them for at least 5 years.
Filing Form B/B1 for Self-Employed Persons
| Mode of filing | When can I file? | How can I file my self-employment income? |
|---|---|---|
1 Mar to 18 Apr |
For revenue $200,000 or less For revenue more than $200,000 4. Declare your other sources of income (e.g. rental, royalty, estate/ trust income) in the relevant sections of your Income Tax Return, if any. Note: | |
| 1 Mar to 18 Apr | Form B
For revenue $200,000 or less For revenue more than $200,000 2. Declare your other sources of income (e.g. rental, royalty, estate/trust income) in the relevant sections of your Income Tax Return, if any. Form B1
Note: |
Reporting for self-employed partners
Self-employed partners are required to report in the individual Income Tax Return (Form B/B1) their:
- Share of partnership profit/loss; and
- 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.
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 filing | When can I file? | How can I file my self-employed partnership income? |
|---|---|---|
1 Mar to 18 Apr |
For revenue $200,000 or less 4. If you are a partner or more than one partnership, click on “add new” to report your share of partnership profit/ loss, and any salary, bonus, CPF, and other benefits received or due to you as a partner from the additional partnerships, and 5. Declare your other sources of income (e.g. rental, royalty, estate/trust income) in the relevant sections of your Income Tax Return, if any. Note: | |
| 1 Mar to 18 Apr | Form B
For revenue $200,000 or less For revenue more than $200,000 2. If you are a partner or more than one partnership, please provide more details in “Appendix 1 (Part 2)” to report your share of partnership profit/ loss, and any salary, bonus, CPF, and other benefits received or due to you as a partner from the additional partnerships, and 3. Declare your other sources of income (e.g. rental, royalty, estate/trust income) in the relevant sections of your Income Tax Return, if any. Form B1
For revenue $200,000 or less For revenue more than $200,000 3. If you are a partner of more than one partnership, please provide more details under “Appendix 1” to report your share of profit/ loss, and any salary, bonus, CPF, and other benefits received or due to you as a partner from the additional partnerships, and 4. Declare your other sources of income (e.g. rental, royalty, estate/trust income) in the relevant sections of your Income Tax Return, if any. Note: |