It is the tax-filing season again!
Here are some frequently asked questions (FAQs) if on tax-filing for Uber and Grab Drivers.
Are Uber/Grab drivers required to file taxes
Yes, all drivers regardless of you are full-time, part-time, ad-hoc or one-off drivers are required to declare. If you are employed as a driver under a limousine company, check with the company if they are under the auto-inclusion scheme or have they filed for you
Income from Social Carpooling such as GrabHitch
For private-hire drivers who provide social carpool services such as GrabHitch and Ryde, on top of providing the regular chauffeured ride services (JustGrab, UberFlash etc) are required to pay taxes on income derived from social carpooling.
Private-Car drivers who provide social carpool trips and adheres to the conditions set out in the Road Traffic (Car Pools) Exemption Order such as not making more than 2 social carpool trips a day and the amount collected for each carpool trip does not exceed what is required to cover the costs incurred to make that trip, the income is not taxable.
When is the deadline
Paper filing dateline is 15 April 2018, E-Filing dateline is 18 April 2018.
What can I declare as expenses
Commission paid out to Uber / Grab. The total earnings regardless whether the earnings have been cashed out, would constitute the revenue to be declared.
For expenses incurred by you on your Mobile Data Plan and mobile device, only that portion of the expenses incurred for your business usage is allowable as deductions. The portion of the charges incurred for your private use is not allowable.
Unless you have a mobile line purely for private-hire usage, it is quite impossible to break down the personal and business usage portion.
Business Licence Renewal Fees including renewal of Private-Hire Car Driver Vocational Licence (PDVL)
What about our expenses like Car Rental, Petrol, Mobile phone repairs, parking
IRAS: Expenses for a private hire car will be deductible only if the person is carrying on the business of hiring out cars and the private hire cars are used by the person principally for hiring.
Private-hire drivers will not be allowed deduction on their motor car operating expenses since they are not in the business of hiring out cars.
Thus, the private hire car expenses and hiring charges incurred by Private-hire drivers are not tax-deductible. Any expenses incurred directly or in the form of reimbursement on using private hire cars or private cars such as repair, maintenance, parking fees, petrol costs, car rental are disallowed.
ACRA registration/PDVL Business start-up expenses, such as ACRA registration fee, PDVL and training courses for the purpose of obtaining the first PDVL are capital expenses and not deductible.
How and Where to File
Go to IRAS website and login with your SingPass to file
You have to report the 4-line statement of your business as follows:
1. Revenue (Total fees received)
2. Gross Profit/Loss (For service business, the gross profit is equal to your revenue)
3. Allowable Business Expenses
4. Adjusted Profit/Loss
For Revenue of $100,000 or less, you have to report only 2-line statement ie REVENUE and ADJUSTED PROFIT/LOSS.
For Revenue of $100,001 to $499,999, you have to report 4-line statement as above.
For revenue of $500,000 or more, you are required to submit certified Statement of Accounts. A complete set of certified Statement of Accounts comprises the certified Profit & Loss Account and Balance Sheet.