Question: Shopee Affiliate Program - S Pass

[jemzxc]

Hi everyone,

I am currently holding onto S Pass.

In Nov, Shopee reached out to me to join their ambassadorship program for 11.11 (2 instagram story for $100 voucher). I didn’t think much of it and went ahead with the posting and received the voucher.

However I did not realize that my affiliate link that people clicked on and purchased would generate commission. The amount is small ($20) - I believe it will reflect on IRAS as commissions are taxable.

I have emailed Shopee to remove me from the program as well as stop all the payment. Just want to ask everyone if I am in trouble for this.

Thank you in advance.

[abbby]

You will need to report in your tax returns to be taxed, it will not automatically show up in your tax statement. But it's only $20 and not $20,000, I don't see it as an issue?

[jemzxc]

You will need to report in your tax returns to be taxed, it will not automatically show up in your tax statement. But it's only $20 and not $20,000, I don't see it as an issue?

Hi Abby,

Thanks for your reply! I managed to remove myself from the program and also told them to cancel the pending payment.

The reason why I am worried is that as a S Pass holder I can’t work for another business. I believe taking part in the program is “working” of sort.

[Pal]

This is considered other income like commission or benefits. As long as you are not officially working for other business, I don't think there is any issue.

[sundaymorningstaple]

This is considered other income like commission or benefits. As long as you are not officially working for other business, I don't think there is any issue.

I might question that.

If you are a self employed person who contracts or does business via another business it is self employment unless you have registered yourself as a Pte Ltd company. I don't there there is a fixed amount at which point self employment income becomes non-taxable. Grab drivers using their own vehicles are paid via commission and are self employed but the revenue (not salary) is not reported on IR8As to IRAS at the end of the year Grab as these people are independent drivers with their own vehicles and therefore self-employed. Also a lot of Grab drivers work full time jobs and only drive in the evenings. The only way it wouldn't be taxable is if the job was being done outside of Singapore. This is similar to what PNGMK has been doing since he left his previous full-time employment. Frankly I think the OP is/has done the proper thing and it's better to be safe than sorry. I would normally say 'give IRAS a call' to be on the safe side, but knowing how vindictive gov't agencies can be, they will require identification via the phone and when they find out the caller is on a Work Pass, he could be up the creek, without the proverbial paddle, if you know what I mean. (In your line of work, aren't there a number of freelance RE Agents who work for other companies and only draw a commission when they make a sale as long as they got their CEA via an initial agency?

I believe this answer all his questions (and yes he would be contravening the MOM laws if it found out as he cannot perform other works while on a Employer based work pass).

https://sleek.com/sg/resources/freelanc ... e%20(IRAS).

[Pal]

I always think such referral commission as benefits and not employment income. For example, refer a client to buy a car and the car salesman gives you $500 as referral fee. IMHO, this is a grey area and shouldn't be classified as employment or moonlighting.

For property agents, they are regulated by CEA and those not registered by CEA cannot collect any commission in any way. But, there are agents who give referral fees to other third parties if the clients are introduced to them. Such person who collected the referral fees are not registered with CEA.

[sundaymorningstaple]

I always think such referral commission as benefits and not employment income. For example, refer a client to buy a car and the car salesman gives you $500 as referral fee. IMHO, this is a grey area and shouldn't be classified as employment or moonlighting.

For property agents, they are regulated by CEA and those not registered by CEA cannot collect any commission in any way. But, there are agents who give referral fees to other third parties if the clients are introduced to them. Such person who collected the referral fees are not registered with CEA.

Fair enough, I don't know enough about the property market here, but IRAS says any referral fees received in excess of $200 make the whole amount reportable. While it's not fully spelled out, I have to assume that that is an annual figure and not an individual fee receipt figure.

[Pal]

Reportable as other income or benefits for the annual income returns but I don't know if this will contravene MOM's ruling or not. Does it?

[sundaymorningstaple]

https://www.iras.gov.sg/media/docs/defa ... nfluencers.

Income Received from Blogging, Advertising & other Activities Performed on Social Media
Platforms

On Page 2, "Frequently Asked Questions"
under "Applying the $100 Threshold" (not $200 as this is a different category) see point h) with regards to taxability (primarily the second chart continued on page 3 Chart entitled "Recurring Supply of Products/Services Provided Over Time"

While it doesn't go into deep enough detail, which is normal, it's pretty easy to extrapolate what they are saying and the cap fits numerous online activities which is a whole different ballgame.

As the commissions are payable over a period of time the $100 threshold does not apply as it also appears that IRAS views this type of income as self employment. Therefore I would also have to assume that having a second job in Singapore while your actual residency is under another company, it was be a technical foul as it were. I think the original poster made the correct choice.

The whole paper is worth a read for our forum for sure as all here are generally on one sort of pass or another unless they've gotten or are SGCs.

"Note: The scenarios listed on IRAS’ website are non-exhaustive. Hence, the same tax treatment would apply to any other income received, or expenditure incurred for blogging related activities if IRAS has ascertained that you are carrying on a trade or business from blogging."

FAQ from MOM: https://www.mom.gov.sg/faq/s-pass/can-i ... 0EntrePass.

"You are a self-employed person when you earn a living by carrying on a trade, business, profession or vocation. Generally, sole-proprietors and partners registered with the Accounting and Corporate Regulatory Authority (ACRA) are self-employed." Nov 30, 2023

[Pal]

Good read, that is the right decision.

Thanks sms!

[jemzxc]

Hi everyone,

Thank you very much for your input. Greatly appreciated. I will be more careful from now on.

Merry Xmas and Happy New Year everyone!