Affects Earned Income Relief and MediSave rates.
Annual Take Home
$81,977.65
Monthly Take Home
$6,831.47
Eff. Rate
4.3%
MediSave
$4,110.00
MediSave for Self-Employed
Self-employed Singapore Citizens and Permanent Residents must contribute to MediSave based on their net trade income. The MediSave contribution rates range from 4% to 10.5% depending on your age and income level. This is compulsory and separate from voluntary CPF contributions.
Earned Income Relief
Self-employed individuals can claim Earned Income Relief: S$1,000 for those below 55, S$6,000 for ages 55-59, and S$8,000 for 60 and above. This is automatically applied to reduce your chargeable income.
Deductible Business Expenses
You can deduct expenses incurred wholly and exclusively for producing your income: office rent, utilities, supplies, professional fees, transport, CPF contributions (within limits), and more. Capital expenses are generally not deductible but may qualify for capital allowances.
IRAS-Aligned: Uses YA 2025 progressive tax rates and MediSave contribution rates. Consult a tax professional for your specific situation.
How sole traders and freelancers pay income tax, MediSave, and file with IRAS
How is self-employment income taxed in Singapore?
Self-employed income is taxed at the same progressive rates as employment income — from 0% to 24%. You report your gross business income, deduct allowable expenses, and pay tax on the net trade income. For example, if you earn S$100,000 in fees and have S$20,000 in business expenses, your net trade income is S$80,000. After reliefs, your tax bill would be around S$2,900.
What MediSave contributions must self-employed people pay?
If your net trade income exceeds S$6,000 per year, you must contribute to MediSave. The rate depends on your age: 8% if you are under 35 with income below S$18,000, rising to 10.5% for income of S$18,000 and above. For someone under 35 earning S$80,000 net, that is S$8,400 per year. MediSave contributions are separate from income tax and paid to CPF Board.
What business expenses can you deduct?
You can deduct any expense that is wholly and exclusively for earning your business income. Common deductions include: office rent, equipment and software, business insurance, professional fees, marketing costs, transport to clients, and staff wages. Home office costs (a portion of rent, utilities, and internet) can also be claimed if you work from home regularly.
Do you need to register a business to be self-employed?
If you operate under a business name (other than your own full name), you must register with ACRA. A sole proprietorship costs S$100 for one year or S$160 for three years. If you use your own name (e.g., "John Tan, Consultant"), registration is not required but is recommended. Registration gives you a UEN, which helps with business banking and credibility with clients.
How do you file your self-employed tax return?
File Form B with IRAS by 15 April (paper) or 18 April (e-filing) each year. You must declare your trade income using a two-line or four-line statement. Businesses with revenue under S$200,000 can use the simpler two-line statement (revenue and adjusted profit only). Above S$200,000, you need a four-line statement with more detail on gross profit and expenses.
Can you carry forward business losses?
Yes. If your business makes a loss in a year, you can carry it forward indefinitely to offset future profits. You can also set it off against other income in the same year (like employment income). To qualify, the loss must be from a genuine trade, and you must meet the shareholding test if your business is a company. Keep proper accounts to prove the loss.
What tax reliefs are available for self-employed individuals?
You can claim: Earned Income Relief (up to S$1,000 if under 55), CPF/MediSave Relief (based on your compulsory contributions), SRS contributions (up to S$15,300 per year), course fees relief (up to S$5,500), and charitable donations (250% tax deduction for approved charities). These reduce your chargeable income and can save you hundreds or thousands of dollars in tax.
IRAS-Aligned: Based on 2025 IRAS rates and thresholds. For personal advice, speak to a qualified tax professional.
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Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms