Learn about taxes and government assistance

Step 4: Learn about taxes and government assistance

Now that you have a better understanding of the regulations for your industry, the next thing to find out is which tax requirements apply to your business, as well as the government assistance schemes and grants that are relevant.

Employee CPF Contributions

You may choose to hire employees under the Home Office Scheme.

Under the CPF Act, as an employer, you’re required to pay CPF contributions for your employees who are Singapore Citizens or Singapore Permanent Residents and who are earning total wages of more than $50 per month. Use this guide by CPF to work out the amount of CPF contributions you need to pay.

Taxation

If your home business is non-registered or registered as a sole proprietorship, partnership, or limited liability partnership, your income must be declared as personal tax under “Business Income”.

If your business is registered under the Companies Act or any law in force in Singapore, the profits of your company will be taxed under corporate tax.

You may refer to more detailed guidelines by IRAS for taxation matters.

Registering for GST is compulsory if your taxable turnover at the end of the calendar year is more than $1 million OR you reasonably expect the turnover to exceed $1 million for the next 12 months. Alternatively, you may also choose to voluntarily register for GST subject to these conditions.

Read more about GST registration on IRAS’ website.

GST InvoiceNow Requirement

If you are intending to register for GST voluntarily, you will be required to share invoice data with IRAS using InvoiceNow solutions via the InvoiceNow network.

This new requirement will be implemented in phases from 1 November 2025, starting with newly incorporated companies that register for GST voluntarily.

For more information on the GST InvoiceNow requirements and deadlines, please visit IRAS’ website.

Government Grants and Assistance

From funding support to references and programs for building capabilities, skills and knowledge, GoBusiness can help you find the government assistance you need. Find out with e-Adviser for Government Assistance, a free online tool to help you select the relevant assistance schemes for your business.

Below are some government support schemes that you may find useful. This list is not exhaustive and serves as a guide.

• NTUC/e2i - SEP Training Support Scheme
  For Self-Employed Persons (SEPs) to receive training allowance when they attend and complete courses under SkillsFuture series and approved sector-specific training programmes.

• Workfare Income Supplement (WIS) Scheme
  WIS encourages eligible workers to work and build up their CPF savings for their retirement, housing and healthcare needs, by supplementing their income and retirement savings through cash payments and CPF contributions.

• Productivity Solutions Grant (PSG)
  The Productivity Solutions Grant (PSG) supports businesses in the adoption of IT solutions or equipment that improve productivity.