Self-Employed Tax in Singapore

How does Singapore tax self-employed income?

A sole proprietor's business income flows directly into their personal income tax return (Form B), filed annually with the Inland Revenue Authority of Singapore (IRAS). Net trade income -- gross business revenue minus allowable business expenses -- is added to any other personal income and taxed at the same progressive resident rates that apply to employees. Singapore has no separate self-employment tax or payroll tax levied on earned income. There is no employer to withhold tax during the year; the self-employed individual pays any balance owed after filing. IRAS administers income tax under the Income Tax Act 1947 (Singapore Statutes, Cap. 134).

YA2026 covers income earned in calendar year 2025. Filing opens 1 March and closes 18 April 2026 for e-filing via myTax Portal (authenticated with Singpass). A paper Form B may be mailed by the same 18 April deadline. Late filing carries a penalty of up to SGD 1,000, with IRAS able to issue estimated assessments where returns are missing.

What are the resident individual income tax rates for YA2026?

Singapore uses a multi-band progressive schedule. Only income within each band is taxed at that band's marginal rate; lower income within lower bands is taxed at the lower rate. The first SGD 20,000 of chargeable income (after reliefs) is tax-free. The table below reflects the rates published by IRAS for YA2026 (income year 2025) and confirmed as unchanged from YA2024 and YA2025.

Source: IRAS Individual Income Tax Rates (iras.gov.sg), verified 2026-06-09.

A sole proprietor with SGD 80,000 net trade income and no reliefs would owe: SGD 0 + SGD 200 + SGD 350 + SGD 2,800 = SGD 3,350 -- an effective rate of approximately 4.2%. Personal reliefs (earned income relief, CPF relief, course-fee relief and others) typically reduce the chargeable income base further.

What is MediSave and why does it apply to sole proprietors?

Singapore citizens and Permanent Residents who earn more than SGD 6,000 in net trade income in a work year must make a compulsory contribution to their CPF MediSave Account (MA). MediSave funds healthcare costs and MediShield Life premiums. There is no employer to make contributions on the sole proprietor's behalf, so the full amount falls on the individual.

Net trade income for MediSave purposes is gross business revenue minus all allowable business expenses, capital allowances, and trade losses -- the same figure reported on Form B. CPF Board uses the IRAS-assessed net trade income to calculate the contribution due and issues a notice requiring payment within 30 days.

MediSave contribution rates by age group (as of work year 2025, rates apply to NTI above SGD 18,000; a phased lower rate applies to NTI of SGD 6,001-18,000):

• Below 35: 8% of NTI (maximum approximately SGD 5,760 per year)
• 35 to below 45: 9% of NTI (maximum approximately SGD 6,480 per year)
• 45 to below 50: 10% of NTI (maximum approximately SGD 7,200 per year)
• 50 and above (up to 64): 10.5% of NTI (maximum approximately SGD 7,560 per year)
• 65 to below 70: 8% of NTI
• 70 and above: 7% of NTI

Contributions are capped once the MediSave Account reaches the Basic Healthcare Sum applicable to the member's age (published annually by CPF Board). Contributions in excess of the Basic Healthcare Sum are redirected to the Ordinary Account. The annual CPF salary ceiling for contribution-rate purposes is SGD 102,000. MediSave contributions paid are fully deductible against assessable income as a tax relief.

Are CPF Ordinary and Special Account contributions voluntary or compulsory?

For the self-employed, only MediSave contributions are compulsory. Contributions to the CPF Ordinary Account (OA) and Special Account (SA) are entirely voluntary. An individual who makes voluntary contributions has them allocated across all three CPF accounts (OA, SA, MA) using the prevailing CPF allocation rates based on age.

Voluntary CPF contributions qualify for tax relief under Section 39 of the Income Tax Act 1947. The relief is the lowest of: (a) 37% of assessed net trade income, (b) the prevailing CPF Annual Limit (SGD 37,740 in 2025/YA2026 -- mandatory plus voluntary combined), or (c) actual contributions made. This means a sole proprietor on SGD 102,000 NTI who maximises voluntary contributions can shelter a significant portion of income at rates that compare favourably to the personal marginal rates in the table above.

When does GST registration become compulsory?

Goods and Services Tax (GST) registration is mandatory under the Goods and Services Tax Act 1993 once a sole proprietor's annual taxable turnover exceeds SGD 1 million. There are two tests. Under the retrospective test, a person must register if taxable turnover in any calendar year (ending 31 December) exceeded SGD 1 million. Under the prospective test, registration is required within 30 days if there are reasonable grounds to expect taxable turnover in the next 12 months to exceed SGD 1 million. The GST rate is 9% (raised from 8% effective 1 January 2024). Voluntary registration is available to businesses below the threshold, which can be advantageous where significant GST is paid on business inputs.

What are the record-keeping and accounting requirements?

IRAS requires sole proprietors to retain all accounting records and supporting documents for at least 5 years from the close of the Year of Assessment to which they relate. Records include: invoices issued and received, sales ledgers, bank statements, payment receipts, and details of MediSave/CPF contributions made. Where annual revenue is SGD 200,000 or less, IRAS accepts a simplified 2-line statement (revenue and adjusted profit or loss) rather than a full set of accounts. Where revenue exceeds SGD 200,000, a 4-line statement is required: revenue, gross profit or loss, allowable business expenses, and adjusted profit or loss. In either case, the underlying documents must still be retained for 5 years; only the level of disclosure in the tax return differs.

For GST-registered businesses, separate GST records must also be retained for 5 years. IRAS publishes an e-Tax Guide on simplified record keeping for small businesses, available on the IRAS website.

The information on this page reflects publicly available guidance from IRAS and CPF Board as of 2026-06-09. Tax rules change. Anyone with questions about their specific position should consult a qualified tax professional registered with the Singapore Institute of Accredited Tax Professionals (SIATP) or a CA(Singapore) member firm. For a broader overview of Singapore's tax system see the Singapore country overview.