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How will the Contribute-As-You-Earn (CAYE) scheme affect my income declaration to IRAS for tax purposes?

There will be no change to Self-Employed Person (SEP)’s declaration of income for tax purposes. SEPs should continue to declare his annual income earned up to 31st December of the preceding year in the Income Tax Return for the current Year of Assessment (YA). For example, the SEP needs to declare his gross income for services provided between 1 January 2024 and 31 December 2024 in Income Tax Return for YA2025, even if it is invoiced only in January 2025. This is regardless of when the Contribute-As-You-Earn (CAYE) contributions for the said services are made.