Singapore's tax system is straightforward and business-friendly, making it an ideal environment for self-employed individuals. If you're self-employed, understanding your income tax obligations is crucial for staying compliant with the Inland Revenue Authority of Singapore (IRAS) while maximizing potential tax savings.
A self-employed person in Singapore refers to an individual who earns income through their own business or trade rather than being employed by a company. Examples include:
Your tax residency status determines how your income is taxed:
Your taxable income includes all earnings derived from your trade, business, or profession, such as:
| Chargeable Income (S$) | Tax Rate (%) | Gross Tax Payable (S$) |
|---|---|---|
| 0 - 20,000 | 0 | 0 |
| 20,001 - 30,000 | 2 | 200 |
| 30,001 - 40,000 | 3.5 | 350 |
| 40,001 - 80,000 | 7 | 2,800 |
| 80,001 - 120,000 | 11.5 | 4,600 |
| 120,001 - 160,000 | 15 | 6,000 |
| 160,001 - 200,000 | 18 | 7,200 |
| 200,001 - 240,000 | 19 | 7,600 |
| 240,001 - 280,000 | 19.5 | 7,800 |
| 280,001 - 320,000 | 20 | 8,000 |
| Above 320,000 | 22 | Variable |
Common deductions include:
Self-employed persons must contribute to MediSave based on net trade income. Late payments may result in penalties.
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