Self-Employed Business Expense Deductions: Who Qualifies and What You Get
Learn how freelancers and sole proprietors in Singapore can lower their taxable income by deducting legitimate business-related costs.
This scheme allows self-employed individuals to reduce the total amount of income they are taxed on by subtracting the costs of running their business.
Who it's for
This is designed for freelancers and sole proprietors who manage their own business operations.
What you get
You can lower your taxable income by deducting business-related costs from your total earnings. This means you only pay tax on your actual profit rather than your total revenue.
What it costs you
There is no fee to use this system, but it requires significant organization. You must keep all your receipts and documentation for at least 5 years to prove your claims.
The catch to know
A common mistake is mixing personal spending and business spending within the same bank account. Keeping these finances separate makes it much easier to track what is a legitimate deduction.
How to apply
- Track all spending related specifically to your business activities.
- Save and organize every receipt for at least 5 years.
- Subtract your total business expenses from your total income when filing your taxes.