New tax deduction options simplify the process for self-employed individuals in Singapore
Singapore’s Inland Revenue Authority (IRAS) has introduced streamlined tax filing options for commission agents and self-employed delivery drivers, making the process more efficient.
For over 100,000 commission agents working in insurance, real estate, financial services, and multi-level marketing, income information will now be pre-filled in their tax returns, thanks to data provided by 650 commission-paying organizations. Additionally, eligible agents can now benefit from Fixed Expense Deduction Ratio (FEDR), allowing them to deduct a fixed percentage of their annual gross income instead of manually calculating allowable business expenses.
Self-employed delivery workers earning S$50,000 or less annually also have the option to claim tax deductions under FEDR. The deduction rates vary based on the mode of delivery:
20% for walking
35% for personal mobility devices, power-assisted bicycles, and motorcycles
60% for vans
For those earning above S$50,000, deductions must be based on actual business expenses. Taxi and private-hire drivers making deliveries have already been eligible for FEDR deductions.
This initiative aims to simplify tax compliance while ensuring self-employed individuals benefit from fair deductions.
