Side hustle selling on Shopee, do I need to register business and declare income to IRAS?

Question

Started selling imported phone accessories on Shopee as a side thing, still holding my full-time job. Making maybe 800 to 1500 profit a month now. Getting a bit worried, do I legally need to register a business with ACRA? And must I declare this income to IRAS even though it's small and part-time? Don't want to kena in trouble but also don't fully understand the rules for small side hustles.

Tiger Mum Serene · Accepted Answer

Two separate things here, both important. First, ACRA registration: if you're doing business under your own name exactly as per NRIC and it's a sole activity, you technically may be exempt, but the moment you use a business name (like 'XYZ Accessories') or want it to look legit, you should register a sole proprietorship with ACRA, it's about 100 to 115 dollars a year and takes 15 minutes on BizFile. Second, and non-negotiable: yes, you MUST declare the income to IRAS. All trade or business income is taxable regardless of how small or part-time, and it gets added to your employment income for your total assessable income. Keep records of sales and costs (your profit is what's taxed, not gross revenue), and declare it in your annual tax filing. IRAS does data-match with platforms, so don't risk it, the penalties for non-declaration far outweigh the tax on 1k a month.

NSman Wei Jie · Answer

On the tax part specifically: you're taxed on net profit, so keep every receipt, your cost of goods, Shopee seller fees, shipping, packaging, even a reasonable portion of relevant expenses are deductible. So your taxable amount from the side hustle isn't the full 800 to 1500, it's after legitimate business costs. Set up a simple spreadsheet from day one tracking every sale and expense. Come filing season you just add the net figure to your Form B or the relevant section. Good records save you money and headaches.

Divorce Survivor Karen · Answer

Register the sole proprietorship, it's cheap and gives you legitimacy plus lets you open a proper business bank account, which makes tracking income and expenses way easier at tax time. Sole prop is the simplest structure, you and the business are legally the same, profits just flow to your personal income tax. Once your side hustle grows bigger you can consider a Pte Ltd for liability protection, but at 1k a month sole prop is more than enough. The BizFile process is fully online via Singpass.

NSman Wei Jie · Answer

Also think about GST, though you're far from it now. You only need to register for GST if your business turnover exceeds 1 million dollars a year, so at your scale absolutely not a concern, don't let anyone scare you into it. Just focus on the two basics: register the sole prop if using a business name, and declare the net income to IRAS annually. Keep it simple and compliant at this stage.

Auntie Lay Hoon Wet Market · Answer

One more angle, check your employment contract. Some companies have clauses about employees running side businesses or requiring disclosure/approval, especially if there's any conflict of interest. Phone accessories probably won't conflict with most jobs, but if you're in a strict corporate or civil service role, better to check the staff handbook or clear it with HR to avoid trouble on the employment side. The IRAS and ACRA stuff is separate from your employer's rules, cover both bases.

Side hustle selling on Shopee, do I need to register business and declare income to IRAS?

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