It’s tax filing time, and we know you have questions on what you should do as a GrabCar driver. We worked with IRAS to compile a list of frequently asked questions below to assist in your filing. Please refer here for the Essential Tax Information for Players of the Sharing Economy.
Frequently Asked Questions
1.–When should I file tax?
Tax filing has already started. GrabCar drivers are required to submit the completed paper Form B by 15 Apr. For e-filing, the due date is 18 Apr.
2. I am driving part time, do I file my Grab income with my employment income tax?
As a part-time GrabCar driver, you are considered as a self-employed person. You should declare your income from driving with GrabCar as trade income under “Trade, Business, Profession or Vocation” under your personal Income Tax Return. This is separate from your employment income which you would declare under “Employment” source in the tax return.
3. As a sole proprietor, where should I go to file taxes?
As a sole-proprietor, GrabCar drivers should report your business income in your income tax return under ‘Sole Proprietorship’ in the ‘Trade, Business, Profession or Vocation’ section.
4. Is there a standard format required by IRAS for submission of my business accounting?
GrabCar drivers with revenue of $100,000 or less per financial year only have to report:
- Revenue (Total earnings received)
- Adjusted Profit/Loss
Should you choose to, you can also include:
- Gross Profit/Loss (This should be equal to your revenue)
- Allowable Business Expenses
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.
5. Do I need to declare:
- My cash incentives?
- Free credits (e.g. incentives, sign up credit, promotional credit)?
- GrabPay earnings that have not been cashed out?
- Referral incentives?
Yes, drivers have to include such additional income as part of their revenue for the year when the incentives and credits are provided to them(even if they have not been “cashed out” or used).
6. What can I claim / not claim for tax deductions purposes?
- GrabCar levy: Admin charges by Grab car for reprint of statement and topping up of “Credit wallet”.
GrabCar drivers’ Credit Wallet that has been charged by GrabCar and the Admin charges imposed by GrabCar as part of their business operating–expenses are tax deductible. Please declare the gross revenue amount (i.e. 100% of the fares) and claim the Credit Wallet deductions and Admin charges paid to GrabCar as business expense.
- Mobile Data Plan/Mobile device
For expenses incurred by GrabCar drivers on your Mobile Data Plan and mobile device, only that portion of the expenses incurred for your business usage is allowable are tax deductible. The portion of the charges incurred for your private usage is not allowed.
- ACRA registration
The initial ACRA registration cost is not deductible, but subsequent business license renewal fees are allowable.
- Petrol costs, Car rental, Rental deposit, Maintenance costs (if applicable), Car accessories (e.g. handphone holder), LTA fees (e.g. car conversion -costs), ERP, Parking / parking fines / road tax
GrabCar drivers’ car operating expenses are non-tax deductible.
- Insurance costs, Mandatory medical checkups
GrabCar drivers’ insurance and medical checkups expenses are private in nature and are non-tax deductible.
7. If I have further tax enquiries, which number should I call?
Please call 1800-3568300 for more information.