Delivery Workers: 20%, 35% and 60% Expense Deductions

Key steps and distinctions

Eligible self-employed individuals may use 20% for walking or bicycles, 35% for power-assisted bicycles, motorised mobility devices or motorcycles, and 60% for vans. Full-time, part-time and ad-hoc work can qualify. Businesses employing drivers or engaging freelancers, including delivery businesses established as sole proprietorships, partnerships or companies, cannot use the delivery-worker concession. With several prescribed modes, apply the corresponding ratio to the income earned using each mode and elect the fixed-expense method consistently across all modes. If any mode is outside the prescribed list, such as a car, lorry or truck, no delivery income qualifies for FEDR; claim actual allowable expenses instead. During e-Filing, select the delivery-worker category and mode and report gross revenue. For example, S$40,000 revenue at a 35% deduction produces S$26,000 adjusted profit. Actual expenses remain an alternative and the method can change each year. A return may be refiled once by 18 April; after assessment, amendments must be lodged within 30 days of the bill date. Business records remain required, with simplified record keeping available only where its conditions are met.