Following the recent release of updated regulations and system enhancements by the Inland Revenue Authority of Singapore (IRAS), we are pleased to provide a technical summary of the key changes affecting individuals, employers, and intermediaries for the Year of Assessment (YA) 2026.
These updates cover new Central Provident Fund (CPF) contribution rules for platform workers, revised tests for tax residency, significant system enhancements for income submission, and clearer guidance on the taxation of self-employed individuals and social media influencers.
1. Mandatory CPF Contributions and Tax Relief for Platform Workers
With effect from 1 January 2025, platform operators are required to deduct and contribute CPF on behalf of platform workers (e.g., private hire car drivers, delivery riders). The tax treatment of these contributions is now aligned with the worker’s age and their chosen contribution structure.
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Younger Platform Workers (Born on or after 1 January 1995): These individuals are treated similarly to employees. Tax relief is automatically allowed on the worker’s share of mandatory CPF contributions. No relief is available for the operator’s share. Voluntary contributions made during the transitional period (2025-2028) are eligible for relief, subject to a cap.
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Older Platform Workers (Born before 1 January 1995): Those who do not opt for the increased contribution structure will continue with mandatory Medisave contributions. Tax relief is allowed on the full amount of such contributions.
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Key Takeaway: All eligible CPF relief for platform workers is automatically reflected in their tax assessments based on data from the CPF Board. No separate claim is required.
2. Determining Tax Residency Status
An individual’s tax residency status is critical as it determines the applicable tax rates and eligibility for personal reliefs. The determination is based on two primary tests.
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Quantitative Test: An individual is a tax resident if they are physically present or employed in Singapore for 183 days or more in the year preceding the YA. Any part of a day counts as a full day. Company directors are excluded from the 183-day employment test.
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Administrative Concessions: Foreigners may still qualify as residents under the:
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3-Year Concession: Applicable to individuals who have stayed or worked in Singapore continuously for three consecutive years, granting them resident status for all three years.
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2-Year Concession: Applicable to individuals (excluding directors and public entertainers) who have worked in Singapore for a continuous period straddling two calendar years, with a total stay of at least 183 days.
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Qualitative Test: When the quantitative test is not met, residency is determined by examining personal circumstances, including family ties, availability of accommodation, and the permanence of a home in Singapore. Citizenship alone does not confer tax residency.
3. System Enhancements for Income Submission
IRAS has introduced significant changes to the submission of employment and self-employment income information.
A. Auto-Inclusion Scheme (AIS) for Employers
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Streamlined Forms: Fields such as citizenship and allowance breakdowns have been removed from Form IR8A. Form IR8S is no longer required from YA 2026.
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Enhanced Reporting: Employers can now submit up to 10 accommodation records per employee in Appendix 8A and file back-year records for up to four previous years.
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Revised Amendment Method: Two submission methods are available: a “revision” submission that overwrites previous records, and an “amendment” submission that adjusts records.
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Data Pre-filling: The data link-up service now pre-fills particulars of foreign employees with details from the Ministry of Manpower (MOM).
B. Submission by Intermediaries of Self-Employed Persons (SEPs)
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Merged Digital Service: The digital services for submitting commission records and SEP income records have been merged into a single platform, allowing for submission of up to 2,000 records at a time.
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Clarity on Section 68A (Rule 2(1)): Following feedback, IRAS has narrowed the scope of information required. The focus is now on self-employed individuals and sole proprietorships acting as commission agents. Exclusions include third-party vendors (e.g., social media influencers engaged on a vendor basis), overseas agents, and individuals without a contract for service.
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Submission Threshold: From 2025, organizations paying 20 or more self-employed commission agents in a year are required to submit income information. Organizations with fewer agents may do so voluntarily. Existing submitters must continue regardless of the number.
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Income to Report: Organizations must report all payments, including allowances, referral fees, and critically, incentives and benefits-in-kind, which are commonly omitted.
4. Filing of Partnership Income Tax Return (Form P)
For YA 2026, a standardized Partnership Allocation Template (PAT) has been introduced for partnerships with more than 10 partners. This template simplifies filing by providing clear instructions and data validation. The key benefit is that it allows IRAS to finalize Form P early, enabling the automatic pre-filling of partners’ shares in their individual income tax returns. Partnerships are encouraged to e-file by 28 February 2026 to facilitate this pre-filling for their partners.
5. Taxation of Social Media Influencers (SMIs)
All payments and benefits received by SMIs from activities carried on as a trade or business are taxable as self-employment income. This includes part-time or casual gigs.
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Non-Monetary Benefits ($100 Threshold):
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Benefits are not taxable if they are provided on an ad-hoc basis for one-off consumption or testing and the value of each item is $100 or less.
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Benefits are taxable if they are provided in return for services, are part of a recurring supply, or have a value exceeding $100.
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Expenses and Capital Allowances: SMIs may claim expenses incurred wholly and exclusively in the production of income, as well as capital allowances for fixed assets like cameras or laptops used for their trade.
This technical note is intended to provide a general overview of recent developments. As individual circumstances can vary, we recommend seeking professional advice to ensure full compliance. For further details, please do not hesitate to contact our office.
Source: SCTP seminar, 5 February 2026