Who can file the 2-line statement?

Sole proprietors and self-employed persons whose business revenue is below S$200,000 for the year can report just two lines — revenue and adjusted profit — in their income tax return.

What's the difference between the 2-line and 4-line statement?

The 4-line statement adds gross profit and allowable business expenses between revenue and adjusted profit. It's required once your revenue reaches S$200,000.

Do I still need to keep receipts if I file the 2-line statement?

Yes — IRAS requires you to keep full records and supporting documents for 5 years, even when you only report two lines.

The IRAS 2-line statement, explained (with examples)

If you're a sole proprietor or freelancer in Singapore, you don't file a corporate tax return — your business income goes into your personal income tax return (Form B/B1) as trade income. To keep that simple, IRAS lets smaller businesses report in a compressed format: the 2-line statement or the 4-line statement.

The 2-line statement — for revenue under S$200,000

If your business revenue for the year is below S$200,000, you report just two numbers:

Revenue — everything your business earned before any expenses.
Adjusted profit / loss — your profit after deducting allowable business expenses and adding back anything that isn't deductible.

The 4-line statement — from S$200,000 revenue

Once revenue reaches S$200,000, IRAS wants the longer version:

1. Revenue — total takings.
2. Gross profit — revenue minus direct cost of goods sold.
3. Allowable business expenses — rent, utilities, transport for work, supplies and other costs incurred wholly and exclusively to earn that income.
4. Adjusted profit / loss — what's actually taxed.

And if revenue reaches S$500,000, you must also prepare a certified statement of accounts (a profit & loss and balance sheet, signed by you).

What does "adjusted" profit mean?

It's your accounting profit with non-deductible items added back. Common add-backs for the self-employed: private expenses (personal meals, family phone bills), private car expenses (not deductible in Singapore even when used for work), fines, and your own "salary" or CPF contributions to yourself. Things like rent for your shop, materials, a work phone line and public transport for jobs stay deductible.

A worked example

Mei runs a home-bakery. This year she banked S$84,000 in orders. Ingredients and packaging cost S$31,000, delivery and platform fees S$6,500, and her oven repair S$400 — total allowable expenses of S$37,900. Her adjusted profit is S$46,100. Because her revenue is under S$200,000, she files the 2-line statement: revenue S$84,000 · adjusted profit S$46,100. Done.

Three rules people miss

Keep records for 5 years — receipts, invoices and statements, even on the 2-line format. IRAS can ask.
File by 18 April each year (e-filing) via myTax Portal.
Revenue is not profit — report the full takings as revenue; deduct expenses only in the adjusted-profit line.

The fast way: Bookly reads your receipts, invoices and bank statements, tallies income and expenses, and produces your 2-line or 4-line figures automatically — ready to copy into myTax Portal. Try it free with 30 documents — no card needed.

This guide is general information for Singapore self-employed persons, not tax advice. Thresholds and rules are IRAS's — check the latest guidance on iras.gov.sg or ask a certified accountant about your specific situation.