Common tax-filing mistakes to avoid
It’s tax-filing season again! If you need to submit an income tax return for Year of Assessment (YA) 2021, do so by 15 April for paper filing and 18 April 2021 for e-Filing to avoid penalties.
If you need more time to submit your tax return, request for an extension to file online via myTax Portal.
If you are not sure on how to file your tax correctly, here are some tips for you!
Tax-filing mistakes to avoid – for employees
Tax-filing for self-employed persons
Tax-filing is treated differently between an employee and a self-employed person. For instance, a self-employed person can claim trade losses against his trade income whereas an employee is not entitled to such claims.
As a self-employed with your own business, you work for yourself and you are in the position to realise a business profit or loss. Your income is derived from the buying and selling of goods, or from providing professional or personal services.
Some examples of a self-employed person include:
- Insurance agent
- Real estate agent
- Direct seller
- Freelancer (e.g. you receive fees for providing services as a delivery rider, consultant, graphic designer)
- Hawker (you are the owner of a hawker business or a food stall)
- Owner of a business that buys and sells goods and/ or services
- Owner of an online business (i.e. you buy and sell goods or provide services through the Internet)
- Owner of your own practice (e.g. accountant, architect, doctor, lawyer)
- Taxi driver / Private-hire car driver
- Private tutor (you look for your own students by yourself or through agencies and do not receive a salary from a tuition centre)
Tax-filing mistakes to avoid – for self-employed
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Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.