Why are platform commissions not deducted from gross earnings before Fixed Expense Deduction Amount is applied?
The Fixed Expense Deduction Amount (FEDA) takes reference from the Fixed Expense Deduction Ratio developed by IRAS, which is based on actual expense ratios, which includes any platform commissions that platform workers pay to platform operators. Hence, the FEDA is applied on gross earnings (including platform commissions), to derive net earnings.
For more details, please see How much to contribute as a platform worker.
This information is sourced from CPF
Related questions
Why is Fixed Expense Deduction Amount used to calculate net earnings for platform workers?
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