In Singapore, it is compulsory for everyone who are receiving employment income or profit for self-employed to declare its annual earning to IRAS through form B.

Under this Form B, you are able to determine your income tax payable subtracting your qualifying tax reliefs.

Business income is income earned from carrying on a trade, business, profession, or a vocation and it taxable in the sole-proprietor, partner, or self-employed person’s name. And thus has to be reported in form B along with other forms of income such as rent/property/estate, trust and royalty income.

The due date for submission of completed paper tax form to IRAS is by 15 Apr. If you e-File, you have up to 18 Apr to do so.

How does it work?

For the sole proprietor, we require the client’s certified statement of account with the Income Tax Return if the revenue is $500,000 or more, and the computation of adjusted profit and loss.

Certified meaning signed by you to be true and correct, statement of account refers to trading profit and loss and balance sheet.

For the partner, we require the client’s information on his/her partnership profit or loss, salary/bonus/CPF and benefits that emerged from partnership. Under-declaring or not declaring may result in you being liable to a penalty.

After collecting this information, we advance to tax computation based on the documents provided, give suggestion to clients on further tax reliefs that he or she may be eligible for by IRAS.

If you do not have the relevant statement of account prepare, you may also look into Accounting Service – Do note that the tax computation is done based on the latest tax rates.