25% Commission-Agent Expense Deduction: A Worked Example

Key steps and distinctions

The option applies to qualifying agents with annual gross commission of up to S$50,000. The illustration starts with S$50,000 gross income, deducts S$12,500 of deemed business expenses at 25%, and arrives at S$37,500 adjusted profit. This is an expense deduction, not a 25% tax rebate or a tax rate on commission. myTax Portal automatically calculates the 25% deduction for qualifying agents. Where actual allowable business expenses exceed that amount, the individual may choose actual expenses during e-Filing instead. The infographic provides a calculation illustration rather than a complete eligibility checklist; the accompanying FAQ explains conditions such as having incurred deductible expenses and the exclusion of partnership income. Keep the gross commission figure accurate when comparing the two methods.