Property agent expenses in Singapore: the complete guide

A Singapore property agent’s tax picture is unusual in two ways. First, the car, which agents in other countries claim at the business-use share, is off the table: expenses on private cars are disallowed under the Income Tax Act even when the car is used only for work. Second, agents whose total income is $50,000 or less can skip the receipts entirely and claim a deemed 25% of gross commission as expenses. Agents above that line claim actual allowable expenses, and need the records to back them. This guide walks through the whole ledger with a verdict before the detail. Every figure is sourced to IRAS in the Sources section, retrieved 10 October 2026.

What this guide covers: the 25% fixed expense deduction ratio, actual expenses, why the car is disallowed, taxis and private hire rides, entertainment and gifts, marketing and phone, MediSave, GST, and records.

The agent’s ledger at a glance

The rest of this guide walks through each row, and every section opens with its verdict.

Where ExpenseFlow fits

An agent’s or agency’s purchase ledger is portal subscriptions, printing and flyers, phone bills, taxi receipts, client meals and the occasional car receipt that shouldn’t be there. ExpenseFlow captures each document (email forward, upload or phone), reads the line items and GST, codes each line with a written reason, and routes anything uncertain to a person before it posts. In Singapore its rules flag costs on an explicit S-plate car as blocked under Regulation 27, rather than apportioning them as it does for vehicles in other countries. After approval the bill syncs to Xero with the source document attached, or to QuickBooks Online as a coded bill.

What it does not do: it never decides whether you qualify for the 25% deemed expense, never files your income tax return and never calculates MediSave.

The ExpenseFlow for real estate agents page covers these checks across all five countries.

The 25% fixed expense deduction ratio

Qualifying commission agents can claim a deemed expense based on 25% of total gross commission income, and the amount is treated as the sum of all allowable business expenses, including entertainment, public transport, gifts and telecommunications ^[1] . To qualify you must carry on a trade or business, have incurred allowable business expenses on the commission, and have total annual gross income from all sources, including commission, referral fees, training fees, allowances and incentives, of $50,000 or less ^[1] . Above $50,000, claim the actual allowable expenses ^[1] . IRAS’s example: an agent earning $40,000 of commission claims $10,000; another earning $15,000 as an insurance agent and $40,000 as a real estate agent doesn’t qualify because the total is $55,000 ^[1] . An agent with expenses above 25% can claim actual expenses instead ^[2] .

The car: disallowed

Expenses on private hire cars or private cars (E, Q or S-plate), such as repairs, maintenance, parking fees and petrol, are disallowable whether paid directly or reimbursed, even if the car is used for business ^[2] . IRAS repeats the rule for delivery workers claiming actual expenses: no private car expenses, even if solely for business, because Section 15 of the Income Tax Act generally disallows them ^[1] . Input tax on a motor car’s purchase and running costs is blocked under Regulation 27 too ^[3] . Rides you take in taxis and on public transport for work are ordinary business expenses, and public transport is named in the costs the 25% deemed expense covers ^[1] .

Entertainment, gifts, phone and marketing

Allowable business expenses are those incurred wholly and exclusively in earning business income; others are disallowed under the Income Tax Act or because they aren’t for the business ^[2] . The 25% deemed expense expressly includes entertainment, public transport, gifts and telecommunications ^[1] . Keep supporting records if you claim actual expenses, because IRAS can ask you to substantiate them ^[2] .

MediSave and GST

Compulsory MediSave contributions apply to self-employed Singapore citizens and PRs whose net trade income is more than $6,000, and CPF relief is given on compulsory contributions subject to conditions ^[4] . From 1 November 2024 the contribution statement comes from the CPF Board ^[4] . GST registration is required once taxable turnover is more than S$1 million at the end of a calendar year, or is expected to be in the next 12 months ^[5] . The GST guide, record-keeping guide and tax deadlines guide cover the rest.

Common mistakes

• Claiming petrol, parking or servicing on your own car ^[2] .
• Claiming car costs on top of the 25% deemed expense ^[1] .
• Claiming the 25% when total income from all sources is over $50,000 ^[1] .
• Forgetting referral fees and incentives when testing the $50,000 limit ^[1] .
• Claiming actual expenses with no records to substantiate them ^[2] .
• Missing compulsory MediSave above $6,000 of net trade income ^[4] .