How to File Your IRAS Tax as a Freelancer in Singapore

了解How to File Your IRAS Tax as a Freelancer in Singapore - 完整指南与实用信息

How to File Your IRAS Tax as a Freelancer in Singapore

In Singapore, anyone earning income from a trade, profession or vocation—such as freelance design, consulting, or driving for a ride‑hailing platform—is considered a self‑employed person by IRAS. You must file an income tax return if your net trade income (gross receipts less allowable business expenses) exceeds $6,000, or if your total assessable income from all sources tops $24,000 after reliefs. For the Year of Assessment (YA) 2026, covering income earned in 2025, resident tax rates begin at 0% on the first $20,000 of chargeable income and climb to 24% on amounts above $1 million.

Who Must File as a Self‑Employed Person

IRAS uses a bright‑line rule: if you receive income from a trade or profession without an employer‑employee relationship, you are self‑employed. Common indicators include issuing your own invoices, paying for your own equipment, and bearing business risks. Even if you hold a full‑time job on the side, you must report your freelance earnings.

You are mandated to file when your annual net trade income hits $6,000 or more. If you earned less but have other income (e.g., employment, rental) that pushes your total assessable income above $24,000, you still need to file. Those who fall below both thresholds may receive a “No‑Filing Service” notification and can skip filing for that YA.

Form B1 vs Form B: Which One Do You Use?

Freelancers who carry on a trade exclusively—with no employment income—and whose gross turnover does not exceed $500,000 file Form B1. It is a simplified return requiring only two lines of business income. If you also draw a salary or report rental/other income, you must file the full Form B. Both forms are accessible via myTax Portal from 1 March each year; the e‑filing deadline is 15 April.

Filing Form B1 means you only need to declare:

Calculating Your Estimated Chargeable Income

Your estimated chargeable income is the foundation for both the current year’s tax bill and the following year’s instalment plan (if applicable). The formula:

Gross trade receipts – Allowable business expenses = Net trade income
Add: other income (employment, rental, investment)
Minus: personal reliefs (e.g., Earned Income Relief, CPF relief, parent relief)
= Chargeable income

For YA 2026, the personal income tax rate structure (after a 50% rebate capped at $200 for residents) is:

Chargeable income ($)Rate
First 20,0000%
Next 10,0002%
Next 10,0003.5%
Next 40,0007%
Next 40,00011.5%
Next 40,00015%
Next 40,00018%
Next 40,00019%
Next 40,00019.5%
Next 40,00020%
Next 180,00022%
Next 500,00023%
Above 1,000,00024%

Self‑employed individuals are often required to pay taxes in instalments; IRAS sends a tax bill based on the most recent assessment.

Allowable Business Deductions That Trim Your Tax

You can deduct expenses that are “wholly and exclusively” incurred to produce your freelance income. Common deductions include:

Capital allowances on larger assets, such as a $6,000 workstation, are spread over the prescribed working life. Keep all invoices and receipts for five years; IRAS may conduct audits.

Personal Reliefs That Lower What You Owe

An automatic relief for self‑employed persons is Earned Income Relief. For YA 2026, the caps match those for employees:

The actual relief granted is the lower of your net trade income or the age‑based cap. You can also claim CPF Relief if you voluntarily topped up your MediSave, Life Insurance Relief, and parent/handicapped sibling reliefs where qualifying conditions are met. Count them all before arriving at your final chargeable income.

Filing Step‑by‑Step via myTax Portal

  1. Log in to myTax Portal with Singpass.
  2. Select “Individuals” > “File Income Tax Return”.
  3. Choose the Form B1 (or B, if required).
  4. Enter your gross trade revenue and total deductible business expenses.
  5. Add any other income sources.
  6. Review and adjust relief claims; the system pre‑fills many based on IRAS records.
  7. Confirm your estimated chargeable income. The portal computes the tax payable instantly.
  8. Submit before 15 April. Late filing attracts a penalty of up to $200, with further enforcement for continued non‑compliance.

Common Mistakes Freelancers Should Avoid

FAQ

Q: What if my freelance income is irregular and below $6,000 some years?
A: If your net trade income in a year is $6,000 or less and your total income remains under $24,000, you may not need to file. IRAS may still send a digital tax bill showing zero tax payable if you were previously in the system.

Q: Can I deduct home office expenses?
A: Yes, but only the incremental costs incurred because you work from home. You cannot claim a percentage of your mortgage. Deductible items include extra electricity used for a dedicated workspace and office furniture purchased for business use.

Q: How is my tax payable calculated when I start freelancing mid‑year?
A: Your trade income is assessed on a calendar‑year basis. Report all freelance earnings from 1 January to 31 December 2025 in your YA 2026 return. Partial‑year rules are no different; you simply report what was earned.

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