Self-employed income tax in Singapore is charged on your net profit, not your revenue. You add that profit to any other income, subtract personal reliefs, and pay the same 0% to 24% resident rates as employees. You must file if your net self-employment profit was more than S$6,000 or your total income was more than $22,000.
The difference from employees is that nobody does it for you. You track expenses, pay compulsory MediSave, and set aside money for a tax bill that arrives the year after you earn.
Who This Covers
IRAS treats you as self-employed if you carry on a trade, business, profession or vocation on your own account. That includes freelancers, sole proprietors, commission agents, private-hire drivers, delivery riders and other platform workers.
Business income is taxed in your own name and reported on your individual return, Form B or B1. For Year of Assessment (YA) 2027, that covers income earned in 2026, filed between March and April 2027.
Self-Employed Income Tax: From Revenue to Net Trade Income
IRAS works it out like this:
| Step | Example (illustration only) |
|---|---|
| Revenue | $80,000 |
| Less: allowable business expenses | $12,000 |
| Less: capital allowances and trade losses | $0 |
| Net trade income | $68,000 |
Filing format. If your revenue is $200,000 or less, IRAS asks for a 2-line statement: revenue and adjusted profit or loss. Above $200,000 you give a 4-line statement, and at $500,000 or more you must upload certified accounts.
The short version: Tax is on revenue minus allowable expenses. Keep five years of records, file if profit exceeds $6,000, and budget for both income tax and MediSave.
What Expenses Are Allowable
IRAS’s general rules for an expense to be deductible:
- it must have been incurred, meaning the liability to pay has arisen
- it must relate to the business, and you must be able to show why it was needed to earn the income
- it must not be personal or private
- it must not be capital in nature; equipment is claimed through capital allowances instead
IRAS gives these as examples of disallowable expenses: your own salary, bonus, allowances and CPF or MediSave contributions; your personal drawings, medical fees, income tax, insurance and donations. Donations and MediSave are instead dealt with as personal deductions and reliefs.
Fixed Expense Ratios: The Shortcut
Some groups can skip itemising and deduct a set percentage of revenue:
- commission agents with gross income of up to $50,000: 25%
- private-hire car and taxi drivers, and delivery workers: their own industry ratios
- from YA 2027, everyone else with revenue of up to $50,000: a new broad-based 20% ratio
It is optional. If your actual expenses are higher, claim those. Our news story on the 20% fixed expense deduction ratio has a worked comparison.
MediSave: Compulsory Above $6,000
If you are a Singapore Citizen or PR with net trade income above $6,000, you must contribute to MediSave. After IRAS issues your tax bill, the CPF Board sends a notice of the amount, payable within 30 days or by GIRO instalments.
The rate depends on age and income. For net trade income earned in 2025 (YA 2026), IRAS shows:
| Age on 1 Jan 2025 | Rate above $18,000 | Annual maximum |
|---|---|---|
| Below 35 | 8% | $7,104 |
| 35 to below 45 | 9% | $7,992 |
| 45 to below 50 | 10% | $8,880 |
| 50 and above | 10.5% | $9,324 |
IRAS notes that net earnings from platform work are excluded from this table, as platform workers follow separate CPF rules. The 2026 figures, for YA 2027, are set by the CPF Board; check its self-employed contribution calculator. Our guide to CPF for the self-employed explains the CPF side.
Tax relief. From YA 2026, IRAS gives relief on the full amount of compulsory MediSave paid in the previous year, even if you had no assessable trade income. Before YA 2026 this relief was capped, including at 37% of net trade income.
Worked Example: A Freelance Designer, YA 2027
Illustration only. A 40-year-old freelance designer earns $80,000 in fees in 2026, with $12,000 of allowable expenses and no other income. During 2026 she paid $6,000 of compulsory MediSave, based on her 2025 income.
| Amount | |
|---|---|
| Net trade income | $68,000 |
| Less: Earned Income Relief | $1,000 |
| Less: MediSave relief (paid in 2026) | $6,000 |
| Chargeable income | $61,000 |
| Tax for YA 2027 | $2,020 |
Tax is $550 on the first $40,000 plus 7% on $21,000. On top, she will receive a MediSave notice in 2027 based on her $68,000 net trade income. At the 2025 rate for her age, 9%, that would be $6,120.
Setting aside around 12% of profit each month would cover both bills in this example. Our income tax calculator can test other figures.
Records and Deadlines
- Keep records of all business transactions for at least five years.
- File on myTax Portal between 1 March and 18 April (the 2026 window; check IRAS for 2027 dates).
- Pay tax within one month of your bill, or by GIRO in up to 12 interest-free instalments. See reading your Notice of Assessment.
What To Do Next
- Open a separate bank account for business income and expenses to make records easier.
- Compare your 2026 expenses with 20% of revenue before you file in 2027.
- Check who must file and when if your income is near the thresholds.
- For partnerships, GST registration or a business with staff, ask IRAS or a qualified tax professional.
