Singapore Tax Guide for Self-Employed, Freelancers & Sole Proprietors 2026
If you operate as a freelancer, sole proprietor, partner, private-hire car driver, food delivery rider, or independent contractor in Singapore, IRAS classifies you as a Self-Employed Person (SEP). You are taxed on your Net Trade Income at the same progressive personal tax rates (0% to 24%) that apply to salaried employees.
1. Who is Classified as Self-Employed by IRAS?
IRAS considers you self-employed if you earn income from a trade, business, profession, or vocation in Singapore. Common categories include:
- Sole proprietors and business partners registered with ACRA
- Freelance designers, software developers, and consultants
- Ride-hailing drivers (Grab, Gojek, Tada) and taxi drivers
- Food delivery riders (Foodpanda, GrabFood, Deliveroo)
- Commission agents (real estate agents, financial advisors)
- Tuition teachers and sports coaches
2. Calculating Net Trade Income
Self-employed persons pay tax on Net Trade Income (NTI), computed as:
Allowable expenses include office rent, marketing costs, accounting software subscriptions, business broadband, and transport costs incurred strictly for trade purposes.
3. Fixed Deemed Expense Ratios
To reduce record-keeping burdens, IRAS offers prescribed fixed expense rates for specific self-employed groups:
| Self-Employed Vocation | Prescribed Deemed Expense Rate | Taxable Net Trade Income Ratio |
|---|---|---|
| Taxi & Private Hire Car Drivers | 60% of Gross Driving Fares | 40% of Gross Income |
| Commission Agents (Real estate, insurance) | 25% of Gross Commission | 75% of Gross Income |
4. Form B & Form B1 e-Filing Process
Self-employed individuals must file tax returns annually by April 18 using Form B / Form B1 via myTax Portal. If your net trade income is under S$20,000, no income tax is payable, but filing remains mandatory if IRAS issues a tax return notification.
5. Mandatory Self-Employed MediSave Contributions
Self-employed Citizens and PRs who earn an annual Net Trade Income exceeding S$6,000 are legally required to make mandatory Central Provident Fund (CPF) MediSave contributions. IRAS issues MediSave Notices of Computation alongside income tax bills.
Calculate your personal tax rates with our Singapore Personal Tax Calculator.
6. Frequently Asked Questions
Do freelancers pay income tax in Singapore?
Yes. Freelancers and sole proprietors are taxed on Net Trade Income at progressive rates (0%–24%).
What is the simplified expense deduction for drivers?
Private hire and taxi drivers can deduct 60% of gross driving fares as deemed business expenses without keeping detailed receipts.