Gig work and worker status
The six-page guide describes independent short-term/on-demand assignments, including consultants, coaches, designers, delivery riders, PHC drivers, tutors, babysitters and home bakers. An employee works under a contract of service, employer control/instructions and normally no business profit/loss risk. A self-employed person works under a contract for service with independence. Gig work is generally the latter, but the real arrangement matters.
Income includes part-time and non-cash payments
Trade income under section 10(1)(a) includes casual, intermittent and supplementary work, with money, goods and services all included. Incentives, referral bonuses, tips and platform-paid insurance premiums are examples. Aggregate calendar-year gigs with other taxable income at individual rates; the guide gives 2020 income reported in YA 2021. Work performed in Singapore remains Singapore-source even with overseas clients or payment.
Two-line or four-line reporting
A two-line statement reports revenue and adjusted profit/loss. A four-line statement adds gross profit/loss and allowable business expenses, with adjusted result equal to gross profit less allowable expenses. Service-only gross profit equals revenue where no goods are sold. The revenue threshold for two-line reporting rose from S$100,000 to S$200,000 from YA 2021; the guide uses not more than that amount.
When filing is required
File when sent Form B/B 1 or an IRAS notification. Without one, annual net trade income exceeding S$6,000 or total income exceeding S$22,000 requires filing through myTax Portal. The guide tells first-time filers to arrange activation with IRAS. Report gigs yourself unless participating intermediaries transmit the income under prefilling; the document’s limited list of PHC/commission organisations is its version-specific scope, not a permanent list of all present platforms.
Actual expenses and capital allowances
Expenses must be wholly/exclusively for income and not prohibited. Private/domestic/capital expenses are not deductible as ordinary business expenses. Apportion mixed utility/internet/phone bills to business usage; delivery-platform fees/commissions facilitating customers and payments are deductible. Qualifying machinery/equipment capital expenditure may attract capital allowances instead.
Commission and driving fixed expense ratios
The guide allows 25% of gross commission where annual commission does not exceed S$50,000; the deemed amount includes entertainment, travel, gifts and telecoms. PHC/taxi drivers may choose 60% of driving income, covering rental, repairs, maintenance, fuel, parking and booking fees. PHC car costs of these kinds may be deductible, but purchase price and capital allowances on private-hire cars are not. Do not add the same costs again on top of a ratio.
Records and simplified requirements
Keep accounts, engagement logs, expenses, invoices/receipts/vouchers for verification. The simplified-record threshold changed from less than S$100,000 to less than S$200,000 from YA 2021, with other qualifying conditions still needed. It permits business registers/listings without source receipts, but IRAS may request the original business records. This less-than wording differs from the two-line reporting threshold.
FAQ 6: MediSave
Annual net trade income over S$6,000 generally requires compulsory MediSave for a self-employed gig worker. NTI is gross receipts less allowable expenses, capital allowances and trade losses, rather than gross revenue. CPF Board issues a contribution notice after assessment; contributions are a capped percentage. Contributions paid may qualify for following-YA relief subject to conditions; consult CPF for actual rates.
FAQ 7: hobby or organised trade
Occasional receipts incidental to recreation differ from repeated/habitual paid activities. Indicators include planned/organised activity, accounts, separate business bank account, premises, licence/qualification, registered name, intention to profit and commercial-platform fees/access. The list is non-exhaustive and absence of one does not rule out trade. The guide’s S$6,000/S$22,000 filing examples do not create a blanket exemption for all small gig receipts.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗