By MoneyBees
Work out what a side hustle leaves you after expenses, the extra income tax on top of your salary, self-employed MediSave once profit passes S$6,000, and what you earn per hour.
Yes, if it is a business you run for money. IRAS says you can be an employee and self-employed at the same time, and side income goes in your tax return under trade, business, profession or vocation. Money from a hobby is not taxable unless you do it repeatedly or habitually for money.
The profit is added to your salary and taxed at your top rates, so the tax on it depends on your other income. On a S$5,000 monthly salary, S$15,000 of side profit adds S$982.80 of tax once MediSave relief is counted.
Only MediSave, and only if your net trade income is above S$6,000 a year. CPF says this applies on top of the CPF you pay on your salary. The rate depends on your age and income; at S$15,000 of profit and under 35, it is S$960.
IRAS asks self-employed people to file if total income is above S$22,000 or self-employed profit is above S$6,000. If your takings are S$200,000 or less, you fill in the 2-line statement: revenue and adjusted profit. Filing runs from 1 Mar to 18 Apr.
Only some groups can. IRAS lets commission agents (25%), delivery workers (20% to 60% by vehicle) and private hire or taxi drivers (60%) use a fixed expense ratio. Everyone else claims the actual expenses of the business and keeps records for at least 5 years.
When taxable turnover is above S$1 million at the end of a calendar year, or is expected to be above S$1 million in the next 12 months. Few side hustles get there, but the GST registration calculator works out the dates.
Yes. Platform workers pay CPF through the platform operator each month, and those earnings are left out of the net trade income used for self-employed MediSave. Use the freelancer vs full-time calculator for platform work.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).