How do self-employed individuals file income tax in Singapore using Form B or B1?

Self-employed individuals in Singapore file their income tax using Form B or Form B1, depending on their situation:

Form B vs Form B1:

• Form B: For individuals who are self-employed (sole proprietors, partners in a partnership, freelancers) or have self-employment income alongside employment income.
• Form B1: For individuals with only employment income and no self-employment income. If you have any trade, business, or professional income, you must use Form B.

Filing requirements for self-employed persons:

• Declare your net trade income in the Trade, Business, Professional or Vocation section of Form B.
• Net Trade Income = Gross Revenue minus Allowable Business Expenses.
• Attach the 4-line statement if your annual revenue is S$500,000 or less (simplified reporting: Revenue, Gross Profit, Allowable Expenses, Net Profit).
• Prepare certified financial statements if your revenue exceeds S$500,000.

Key deadlines:

• Paper filing: 15 April 2025 (for YA2025).
• E-filing: 18 April 2025.

Important reporting items:

• Report all income sources, including freelance work, commissions, and partnership income.
• If you are a partner, report your share of the partnership income as declared in the partnership's Form P.
• Declare income on an accrual basis (when earned, not when received).

Common mistakes to avoid:

• Failing to report small freelance or gig economy income.
• Claiming personal expenses as business expenses.
• Not separating business and personal bank accounts.
• Forgetting to include the mandatory MediSave contribution as a deduction.

Keep proper accounting records and supporting documents for at least 5 years from the relevant YA.