Do you need to pay income tax for profits from carousell, flea markets, online marketplaces, etc? - Seedly
 

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Asked by Anonymous

Asked on 04 Nov 2019

Do you need to pay income tax for profits from carousell, flea markets, online marketplaces, etc?

Is there a maximum you are allowed to earn before you need to contribute tax?

Mostly just selling unwanted household items / pre-loved items.

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Royalchem
Royalchem
Level 5. Genius
Answered on 05 Nov 2019

Selling pre-loved items and unwanted i believed is fine. In a way there was no profit from it. It is still better to check iras website.

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IRAS guidance below - if you are " carrying on a trade, business, profession " then considered self employed and gains would be taxable https://www.iras.gov.sg/irashome/Businesses/Self-Employed/Learning-the-basics/Basic-Guide-for-Self-Employed-Persons/

There is no specific number but if it came to it; would look into whether factors existing showing a structured business (seperate accounting records, vendor contract/relationships, etc) to make the judgement.

if you are just selling unwanted stuff on adhoc basis; wouldn't be taxable.

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Gabriel Tham
Gabriel Tham
Level 9. God of Wisdom
Answered on 05 Nov 2019

If you are just a casual seller of 2nd hand stuff, then is really up to you. Optional. If carouselling is your only source of income and you need to buy HDB or buy car with loan, then they will require your income statement. This case, you would have to decalre an income to take up loans.

If you are an online shop, yes, must declare.

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Revenue is not equal Profit.

Profit is revenue minus costs (R - C = P)

If you are selling secondhand items where the cost of the goods is actually higher, then in accounting, you are not turning a profit, you are running a loss. (hence no income tax needed)

Unless you are running a 2nd hand business where you actively buy goods from others (like 2ndhand computers, secondhand furnitures, secondhand bags etc) and then sell it to others where you are making a profit, then you should document it down.

First $20,000 individual income in each financial year is 0% tax rate, so you don't have to pay any tax if your business is generating less than $20,000 profits.

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Cassandra
Cassandra
Level 4. Prodigy
Answered on 23 Nov 2019

Nope, I think selling pre-loved items shouldn't be taxable.

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Axib Xny
Axib Xny
Level 4. Prodigy
Answered on 23 Nov 2019

Capital gains not taxable in Singapore....

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