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The Tax Reality Behind Singapore's Side Hustle Boom

Sharon Salim recently wrote: "Beyond the 9 to 5: Why side hustles are becoming a way of life for more full-time workers in Singapore" in The Straits Times (Published July 7, 2025)
The side hustle revolution in Singapore has reached unprecedented levels. From Joey Chan managing five pet-sitting visits daily while working full-time at The Mind Cafe, to Tris Su's matcha business growing from 15 cups to over 60 cups per weekend, we're witnessing a fundamental shift in how Singaporeans approach work. The post-pandemic world has transformed moonlighting from a frowned-upon practice into celebrated "polyworking" and "slash careers."
Home-based F&B businesses are thriving on platforms like Acuppa, which lists 140 businesses mostly run by full-time employees operating on weekends. From Bangkok-inspired home cafés to specialised matcha brewing that takes a year to perfect, these ventures exemplify genuine entrepreneurial passion, not just quick income grabs.
Companies are increasingly supportive when performance stays strong, with some even valuing the fresh perspectives and practical skills employees acquire. As one accounting firm co-founder noted, assistants with side businesses bring capabilities "hard to build in traditional roles alone." However, tolerance varies considerably across industries - retail and F&B employers remain cautious about employee fatigue impacting performance.
With 33% of Singaporeans now involved in side hustles, IRAS has clear guidelines that earnings are subject to tax as self-employment income, regardless of business registration status. You must declare income if your total exceeds $22,000, you profit over $6,000 from self-employment, or you're a non-resident earning Singapore income. IRAS's clear approach to side hustle taxation indicates official recognition that these are not merely weekend hobbies - they are legitimate income sources that deserve proper treatment. You can lower taxable amounts by claiming allowable business expenses, making compliance both straightforward and fair.
Whether you're building the next Acuppa or perfecting matcha recipes like the entrepreneurs transforming Singapore's gig economy, transparency with employers and IRAS isn't just good practice - it's vital for sustainable success. As side hustles become mainstream, proper financial management becomes the foundation for turning passion projects into enduring ventures.
In Q4, we plan to launch an affordable compliance solution designed to help gig economy workers fulfil their tax responsibilities. More details will be provided soon.
Velten Advisor Founder

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For more information please contact Michael Velten.

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+6590687547
michael@veltenadvisors.com
391B Orchard Rd, Level 22,
Ngee Ann City Tower B,
Singapore, 238874
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