- Freelancers pay income tax on their net trade income at individual rates and file with IRAS by 18 April each year.
- MediSave is compulsory once net trade income passes S$6,000 a year, while GST registration only becomes mandatory above S$1 million in taxable turnover.
- Keeping business and personal money separate, with records held for five years, is what lets you claim deductions and file accurately.
Freelancer and self-employed tax in Singapore comes down to three separate obligations, not one: income tax, GST and MediSave. Get the differences wrong, and you either overpay or end up with a late-filing notice from IRAS. The reassuring part is that each obligation has a clear rule you can plan around, and steady accounting and tax support keeps them from piling up. This guide walks through what you owe, when it falls due, and the single threshold that decides whether GST applies to you at all.
|
At a glance Yes, freelancers and the self-employed in Singapore pay tax, but through three obligations that work independently:
Keep proper records for at least five years to support everything you file. |
Are you self-employed for tax purposes?
You are self-employed for tax purposes if you earn income from a trade, business, profession or vocation in your own name rather than as someone’s employee. Most freelancers in Singapore operate as sole proprietors, which means the business and the person are the same taxpayer. There is no separate company return: your business profit is added to your personal income and taxed in your name.
That is the key line to get right, because it changes who reports the income and how. A private limited company is taxed separately at the corporate rate, so if you have incorporated, different rules apply. If you are weighing the two, choosing your business structure is a decision worth making before tax season, and it helps to understand how freelancing differs from traditional employment in practice.
|
What changes |
Traditional employee |
Freelancer / self-employed |
|---|---|---|
|
Who reports the income |
Employer reports it to IRAS under the Auto-Inclusion Scheme |
You compute and file it yourself in Form B or B1 |
|
CPF |
Employer and employee both contribute |
Only MediSave is compulsory, once net trade income tops S$6,000 |
|
Expense deductions |
Limited to a few employment expenses |
A wider range of costs incurred wholly to earn the income |
|
GST |
Not your concern |
Register only once taxable turnover crosses S$1 million |
In short, the shift from employee to freelancer moves three jobs onto your plate: reporting your own income, tracking deductible costs, and watching the GST and MediSave thresholds. The rest of this guide takes each one in turn.
What income tax do freelancers pay, and how do you file?
You pay income tax on your net trade income, which is your gross earnings minus allowable business expenses. That figure is added to any other personal income and taxed at Singapore’s resident individual rates, which run progressively from 0% on the first S$20,000 of chargeable income up to 24% on income above S$1 million. There is no separate, higher “freelancer” rate.
You report it in Form B or B1 through myTax Portal with your SingPass, and IRAS opens filing from 1 March, with the e-filing deadline on 18 April (15 April for paper). If your revenue is S$200,000 or less, you complete a simple 2-line statement; above that, you use the 4-line statement. You can review the individual income tax rates to estimate your bill, and these tax filing tips for freelancers cover the common slip-ups.
Do you always have to file?
Not always, but do not assume you are off the hook. If IRAS sends you a filing notification by SMS, letter, or paper form, you must file no matter how little you earned. Some self-employed people are placed on the No-Filing Service, where income is pre-filled, and you only need to file if you want to add income or claim expenses. When in doubt, log in to myTax Portal and check your status.
Do freelancers need to register for GST?
Most freelancers do not. GST registration only becomes compulsory once your taxable turnover exceeds S$1 million in a calendar year, or you can reasonably expect it to. Below that ceiling, registration is voluntary rather than required, so the majority of solo operators never touch GST at all. This is the single most misunderstood point for freelancers, so it is worth stating plainly.
If you do cross the threshold, you charge GST at 9% on your taxable supplies, file regular returns, and pass the collected tax to IRAS after offsetting what you paid on business costs. Voluntary registration is possible earlier, but it comes with a minimum two-year commitment and added admin, so weigh it carefully. Before you decide, it helps to check whether you need to register your freelance business at all.
CPF and MediSave when you work for yourself
MediSave is the one CPF contribution you cannot skip. Once your net trade income for the year is more than S$6,000, contributions to your MediSave account are compulsory, and this holds even if your income sits below the level where income tax kicks in. The other CPF accounts, Ordinary and Special, stay voluntary for the self-employed.
The amount is a percentage of your net trade income that rises with age and is capped each year. You will get a Notice of Contributions from the CPF Board after your income tax is assessed, and payment is due within 30 days or by GIRO instalments. For the exact bands, see self-employed CPF contributions, and if the accounts themselves are new to you, how CPF works is a useful primer.
What can you claim as a freelancer?
You can claim expenses that are incurred wholly and exclusively to earn your trade income, which is what brings your net trade income and your tax bill down. Think software subscriptions, professional development, a portion of home internet and phone used for work, and equipment through capital allowances. Private spending does not qualify, and mixing the two is the fastest way to lose a deduction.
Two habits make this painless: keep a separate business account so personal and business money never blur, and hold your records for at least five years, as IRAS requires. Accrual-based records give a truer picture of a lumpy freelance year than cash counting alone. If the distinction is fuzzy, the difference between accounting and bookkeeping explains where each one fits.
How Sleek helps you stay on top of freelance tax
Sleek’s accounting and tax service keeps your books in order, files your income tax return with IRAS, and sorts GST registration if your turnover ever crosses S$1 million, so the three obligations stop competing for your attention. From S$75 a month, you get an assigned accountant who knows Singapore’s rules for the self-employed, which means fewer surprises at filing time and more hours back for client work.
450,000
businesses worldwide.
from 4,100+ reviews.
FAQs: Freelancer and self-employed tax in Singapore
Do I have to file taxes if my freelance income is small?
Possibly. If IRAS sends you a filing notification by SMS, letter or paper form, you must file regardless of how little you earned. Filing runs from 1 March to 18 April on myTax Portal. If you are placed on the No-Filing Service, your income is pre-filled,d and you only file to add income or claim expenses.
How is freelance income taxed compared to a salary?
Your net trade income is added to your other personal income and taxed at the same resident rates, from 0% to 24%, not a special freelancer rate. The difference is that no employer reports it or contributes CPF for you, so you calculate the income yourself, claim your own deductions, and file it in Form B or B1.
When must a freelancer register for GST?
Registration is compulsory only once your taxable turnover exceeds S$1 million in a calendar year, or you expect it to. Most freelancers never reach this and can ignore GST entirely. If you cross it, you charge GST at 9%, file regular returns, and must register within 30 days of passing the threshold.
Do freelancers pay CPF?
Only MediSave is compulsory, and only when your net trade income tops S$6,000 for the year. Contributions to your Ordinary and Special accounts remain voluntary. The MediSave rate is a percentage of net trade income that increases with age and is capped annually. The CPF Board bills you after your income tax is assessed.
What expenses can I claim as a freelancer?
You can claim costs incurred wholly and exclusively to earn your trade income, such as software, work-related internet and phone use, professional development, and equipment via capital allowances. Private expenses do not qualify. Keep receipts and records for at least five years so you can support every deduction if IRAS asks.
