Home > e-Services > Businesses > Commission-Paying Organisations > e-Submission of Commission > Preparing Information for Submission
Frequently Asked Questions (FAQs) on Preparing Information for Submission
Questions
1.
When is commission considered as income earned? ..................................................................... 1
2.
Do commission-paying organisations only submit commission information for commission
earners who are taxable? ................................................................................................................ 1
3.
Should commission-paying organisations submit commission information for overseas earners?
......................................................................................................................................................... 1
4.
Should gross commission income submitted by the commission-paying organisation include
GST?................................................................................................................................................. 2
5.
Should benefits in kind (e.g. vouchers, accommodation, and flight tickets) given to commission
earners after achieving a target be considered commission? ........................................................ 2
6.
Should lucky draw prizes received from the commission-paying organisation be considered
commission income? ....................................................................................................................... 2
7.
Should sole-proprietors earning commission from their sole-proprietorships include their own
commission information in the file submission? ............................................................................ 2
8.
Should commission-paying organisations include rebates (e.g. rebates given when a specific
targeted sales amount is achieved) given to the commission earner in the submission? ............. 2
9.
Should commission income be reported in Singapore or foreign currency? What is the exchange
rate that we should use?................................................................................................................. 3
10. Should commission-paying organisations submit information of referral fees to freelancer? ...... 3
11. Should commission-paying organisations include commission earners who join the organisation
for a short period? .......................................................................................................................... 3
12. Should commission paid to cedants/ reinsurers/ brokers be reported to IRAS? ........................... 3
13. A token of appreciation was given for sales referral. Should the commission-paying organisation
submit this information? ................................................................................................................. 4
14. What is the commission amount to be submitted if the commission-paying organisation has
deducted fees or penalties from the gross commission earned by the commission earner (e.g.
for the use of office space, telephone charges etc)? ...................................................................... 4
15. How should a commission-paying organisation (e.g. estate agency) submit co-broking
transactions for their commission earners (e.g. salesperson)? ...................................................... 4
16. How should commission-paying organisations submit commission information for jointmembership? .................................................................................................................................. 5
17. How should commission-paying organisations report the commission income if there is a
clawback paid by the commission earners?.................................................................................... 5
Home > e-Services > Businesses > Commission-Paying Organisations > e-Submission of Commission > Preparing Information for Submission
Frequently Asked Questions (FAQs) on Preparing Information for Submission
Answers
1. When is commission considered as income earned?
Commission is considered as income earned when it is accrued (due and payable),
regardless of the payment date, i.e. once there is a liability to pay commission to the
commission earner for the services rendered.
If the payment is conditional on the commission earner achieving a certain target,
commission is considered accrued once the target has been achieved.
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2. Do commission-paying organisations only submit commission information for
commission earners who are taxable?
No, commission-paying organisations should submit the commission information of
all commission earners, regardless whether they are taxable. However, exclude
those who did not earn any commission in the year.
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3. Should commission-paying organisations submit commission information for
overseas earners?
Commission-paying organisations should submit information relating to Singapore
sourced income.
If the commission income is sourced in Singapore, it is taxable in Singapore
regardless of whether the commission earner is a local or foreigner.
Commission-paying organisations do not need to submit the commission information
if commission is paid to an overseas commission earner who:
 Has no permanent establishment in Singapore; or
 Did not conduct any work in Singapore.
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Home > e-Services > Businesses > Commission-Paying Organisations > e-Submission of Commission > Preparing Information for Submission
Frequently Asked Questions (FAQs) on Preparing Information for Submission
4. Should gross commission income submitted by the commission-paying
organisation include GST?
GST should not be included in the submission.
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5. Should benefits in kind (e.g. vouchers, accommodation, and flight tickets)
given to commission earners after achieving a target be considered
commission?
If the benefits in kind were given as a result for the services rendered, it should be
included as part of the commission.
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6. Should lucky draw prizes received from the commission-paying organisation
be considered commission income?
Lucky draw prizes that the commission earners receive from company events are
generally not taxable and hence should not be submitted as part of the commission
income.
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7. Should sole-proprietors earning commission from their sole-proprietorships
include their own commission information in the file submission?
No, sole-proprietors are not required to submit their commission income information
in e-Submission of Commission. They should report the commission income as part
of their trade income when filing their Income Tax Returns.
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8. Should commission-paying organisations include rebates (e.g. rebates given
when a specific targeted sales amount is achieved) given to the commission
earner in the submission?
Yes, commission-paying organisations should submit the gross commission,
including cash and product rebates.
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Home > e-Services > Businesses > Commission-Paying Organisations > e-Submission of Commission > Preparing Information for Submission
Frequently Asked Questions (FAQs) on Preparing Information for Submission
9. Should commission income be reported in Singapore or foreign currency?
What is the exchange rate that we should use?
Commission is to be reported in Singapore currency. Commission-paying
organisation can use the exchange rates recorded in their books or the exchange
rates from Monetary Authority of Singapore.
The Monetary Authority of Singapore exchanges rates can be found at:
https://secure.mas.gov.sg/msb/ExchangeRates.aspx
Commission-paying organisations may consolidate the amount accrued to the
commission earner in a year and apply the average exchange rate.
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10. Should commission-paying organisations submit information of referral fees to
freelancer?
If the commission paid for closing the deal are paid directly to commission earner and
freelancer (for referrals), the commission-paying organisation is required to submit
the information for both commission earner and freelancer.
If the commission is only paid to commission earner and not freelancer, the
commission-paying organisation should only submit the gross commission
information earned by the commission earner. The payment of the commission from
the commission earner to the freelancer is a private arrangement between them. In
this case, the commission earner will claim business expenses paid to the freelancer
when he e-Files.
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11. Should commission-paying organisations include commission earners who
join the organisation for a short period?
Yes, commission-paying organisations should include all commission earners
regardless of the duration that they were with the organisation.
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12. Should commission paid to cedants/ reinsurers/ brokers be reported to IRAS?
Yes, commission-paying organisations are required to include ceding commission
and brokerage paid to commission earners in their submission.
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Home > e-Services > Businesses > Commission-Paying Organisations > e-Submission of Commission > Preparing Information for Submission
Frequently Asked Questions (FAQs) on Preparing Information for Submission
13. A token of appreciation was given for sales referral. Should the commissionpaying organisation submit this information?
Yes, it should be submitted in the submission file.
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14. What is the commission amount to be submitted if the commission-paying
organisation has deducted fees or penalties from the gross commission
earned by the commission earner (e.g. for the use of office space, telephone
charges etc)?
The commission-paying organisation should submit the gross commission before
deductions. The commission earner can claim these as his business expenses during
tax filing.
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15. How should a commission-paying organisation (e.g. estate agency) submit cobroking transactions for their commission earners (e.g. salesperson)?
If salesperson A has entered into a co-broking deal with Salesperson B through their
respective estate agencies, both the salespersons will receive their share of
commission (co-broking fees) from their own estate agencies on their services
rendered.
The commission received by the respective salespersons from the co-broking deal
will form part of their total commission received for the year. The estate agencies will
transmit the information of the total commission earned by their respective
salesperson in their e-submission to us.
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Home > e-Services > Businesses > Commission-Paying Organisations > e-Submission of Commission > Preparing Information for Submission
Frequently Asked Questions (FAQs) on Preparing Information for Submission
16. How should commission-paying organisations submit commission information
for joint-membership?
Commission earners under joint-membership should inform their commission-paying
organisation on the basis of sharing of the commission income earned by the
respective joint account holders.
If the commission earners have not informed the commission-paying organisation on
the basis of sharing of the commission income, the commission-paying organisation
may submit the commission income based on the commission paid to the respective
account holders.
If the commission earners disagree on the information submitted, they may amend
the information (Revenue) in their Income Tax Return and inform their organisation
on the correct share of commission income earned by the respective account holders.
The commission-paying organisation will be required to submit an amendment file
accordingly.
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17. How should commission-paying organisations report the commission income
if there is a clawback paid by the commission earners?
Commission-paying organisation is required to report all commission income
received by the commission earner in the year regardless of the commission
clawback paid. The commission earner can claim the amount paid as an expense in
the year of the clawback.
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The information provided is intended for better general understanding and is not intended to comprehensively address all
possible issues that may arise. The contents are correct as at 08 Feb 2017 and are provided on an “as is” basis without
warranties of any kind. IRAS shall not be liable for any damages, expenses, costs or loss of any kind however caused as a
result of, or in connection with your use of this user guide.
While every effort has been made to ensure that the above information is consistent with existing policies and practice, should
there be any changes, IRAS reserves the right to vary our position accordingly.
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