Difference in Personal Income Tax between Employee vs Self-employed

Difference in Personal Income Tax between Employee vs Self-employed

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Difference in Personal Income Tax between Employee vs Self-employed

Personal tax varies for employed and self-employed individuals in Singapore according to the tax regulations set by IRAS. It is important to know where you lie. So, which are you?

 

  1. Employees: In Singapore, an individual who is serving a contract of service is considered an employee. This means that the person is entitled to receive a regular salary and incentives and is under the rule of an employer.

  2. The self-employed: A self-employed individual in Singapore is the one who offers services to others, works for himself, and earns taxable income. Under this category, there are freelancers, hawkers, baby sitters, direct sellers, traders, agents, etc. Hence, a self-employed can either be the sole owner of their proprietorship or have a partnership in business.