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 individual income tax return.
Reporting for Self-Employed Partners
Self-employed partners are required to report in the Individual Income Tax Return (Form B or Form 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. To determine if you are a partner that is employed or self-employed, please refer to Am I an Employee or a Self-Employed.
Completing Form B
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 should report the income in Appendix 1.
Completing Form B1
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
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).
Filing Form B/B1 for Self-Employed Partners
Modes of Filing
Filing Due Dates
|Mode of Filing||Original Filing Deadline|
|e-Filing||18 Apr 2021|
|Paper Filing||15 Apr 2021|
Guides and Tips on Filing