Tax Rates and Exemptions Sole Proprietorship

A sole proprietos is regarded as a self-employed receiving business income derived from carrying on a trade, a business, a profession, or a vocation. Business income is taxable in the sole-proprietor's name and needs to be reported in hish/ers individual tax return, where it becomes subject to personal income tax rates.

The reporting procedure depends the on amount of the business revenue and comprises

1. Preparing statements of accounts with (1)
   • Trading and Profit and Loss Account
   • Balance Sheet
2. Report 2-line Statement with (2)
   1. Revenue
   2. Adjusted Profit/Loss
3. Report 4-Line Statement with (3)
   • Revenue
   • Gross Profit/Loss
   • Allowable Business Expenses
   • Adjusted Profit/Loss
   • Submit certified statement of accounts and Computation of Adjusted profit/Loss together with your Income Tax Return (4)

   Amount of Revenue (1) (2) (3) (4 ) Revenue >/= $100,000 Revenue > $100,000 < $500,000 Revenue =/> $500,000

    

Information on GST

Download tax guide from IRAS

 

• Business expenses
• Productivity and Innovation Credit
• Employment expenses
• Rental and Net Annual Value (NAV) Expenses
• Donations
• Reliefs
• Parenthood tax rebate
• One-off personal tax rebate (for YA 2009)
• Highlights of Enhanced Marriage & Parenthood Tax Measures

Singapore has various relief schemes to reduce income tax:

• Course fees relief
• CPF cash top-up relief
• CPF/provident fund relief: for self-employed/employee who is also self-employed
• Earned income relief
• Foreign maid levy rlief
• Grandparent caregiver relief
• Handicapped brother/sister relief
• Life insurance relief
• NSman (self/wife/parent) relief
• Parent/handicapped parent relief
• Qualifying/handicapped child relief
• Supplementary Retirement Scheme (SRS) relief
• Spouse/handicapped spouse relief NEW!
• Working mother's child relief