SG Online Seller Tax Guide Part I

31 May 2026

1. Identifying Taxable Online Activities: Business vs. Hobby

I often see sellers confuse "side-hustles" with "personal disposal." IRAS is clear: if you are operating for profit in a repeated, organized manner, you are in business.

Consider Ms. Amy, who clears her wardrobe on Carousell; because her clothes were bought for personal use, her sales are non-taxable. Contrast this with Mr. Brandon, who started by selling his personal antique collection but then began actively sourcing new antiques to resell for profit. Mr. Brandon’s activities shifted from a hobby to a taxable trade the moment profit intent and repetition took over.

Is Your Side-Hustle a Taxable Business?

• Profit Intent: Is the primary goal of the activity to generate income?

• Repetitive Activity: Do transactions occur regularly rather than as one-off events?

• Organization: Do you use dedicated storefronts, social media marketing, or systematic order fulfillment?

• Content Monetization: Are you receiving advertising revenue, subscriptions (e.g., Patreon/Twitch), or commissions for digital influence?

2. Filing Thresholds and Mandatory Obligations

Ignorance of the law is no defense. You are legally required to report income if you meet these triggers, even without a notification from IRAS.

• Total Taxable Income: More than $22,000 (Sum of employment and trade income).

• Net Trade Income: More than $6,000 (Revenue minus allowable expenses).

• MediSave Requirement: If you are a Singaporean/PR with Net Trade Income >$6,000, compulsory MediSave contributions apply regardless of your income tax liability.

Strategic Filing Intel

• Filing Window: 1 March to 18 April.

• Action: File via myTax Portal using Singpass.

• Minors: Sellers under 21 are still assessable; guardians are responsible for the filing.

3. The Anatomy of a Tax Declaration: 2-Line vs. 4-Line Statements

Accuracy is non-negotiable. IRAS does not accept rounded estimates. You must extract actual figures from your statement of accounts. The complexity of your filing depends on your revenue.