Tax Reliefs and Rebates

Tax reliefs and rebates are given as a recognition for individuals' efforts. Instead of compensating taxpayers for certain type of expenses fully, reliefs and rebates are given to promote certain social objectives. Hence there are reliefs available to encourage family formation, filial piety and upgrading of skills and reliefs given in support of individuals saving for retirement and serving National Service. Please find below the table of reliefs/rebates and their quantum with effect from YA2017.

 

TAX RELIEFS

QUANTUM

OBJECTIVES

1.

Earned Income Relief

 

To provide recognition for individuals who receive income from work

 

i) Below 55 years old

S$1000

 

 

ii) 55 to 59 years old

S$6000

 

 

iii) 60 years old and above

S$8000

 

 

Earned Income Relief for Handicapped Taxpayer

 

 

 

i) Below 55 years old

S$4000

 

 

ii) 55 to 59 years old

S$10000

 

 

iii) 60 years old and above

S$12000

 

2.

Spouse Relief

S$2000

To provide recognition for taxpayers who have supported their spouses

3.

Handicapped Spouse Relief

S$5500

To provide recognition for taxpayers who have supported their handicapped spouses.

4.

Qualifying Child Relief (QCR)

S$4000

To provide recognition for families’ efforts in raising their children.

5.

Handicapped Child Relief (HCR)

S$7500

To provide recognition to families’ efforts in caring for handicapped children.

6.

Working Mother's Child Relief (WMCR)

 

To encourage parents to take up Singapore citizenship for their children.

To encourage married women to remain in the workforce after having children.


 


 


 


 


 


 


 

 

Qualifying Singaporean child who is:

 

 

 

1st child

15% of mother's earned income

 

2nd child

20% of mother's earned income

 

3rd child

25% of mother's earned income

 

4th child

25% of mother's earned income

 

5th child and beyond

25% of mother's earned income

    WMCR plus QCR/HCR capped at $50,000 per child

Cumulative WMCR for all qualifying children capped at 100%
7. Parent Relief S$5500 for each dependant, if taxpayer does not stay with dependant (taxpayer may claim relief maximum of 2 dependants)

S$9000 for each dependant, if taxpayer stays with dependant (maximum of 2 dependants)

To promote filial piety.
8. Handicapped Parent Relief S$10000 for each dependant, if taxpayer does not stay with dependant (taxpayer may claim relief maximum of 2 dependants)

S$14000 for those who live with the parents in the same household (maximum of 2 dependents)

To provide recognition to individuals maintaining their handicapped parents.
9. Grandparent Caregiver Relief S$3000 for 1 parent/ parent-in-law/ grandparent/ grandparent-in-law or ex-spouse’s parent/grandparent (to be claimed by working mothers)

To provide recognition that grantparents may play a role in helping working mothers take care of their children.
10. Handicapped Sibling Relief S$5500 each To provide recognition to individuals maintaining their handicapped siblings.

11. Relief for approved pension/provident fund contribution & life insurance premium If compulsory CPF contribution <S$5000, claim lower of difference between $5000 and CPF contribution; or up to 7% of the insured value of your own/your wife's life or the amount of insurance premiums paid, whichever is lower. Compulsory CPF contributions are fully tax-exempt.

(If total CPF contributions exceed $5000, you will not get any relief for the insurance premium paid.)
To provide support of individuals saving for their retirement.
12. Relief for CPF contribution by self-employed persons 37% of income from trade, business, profession or vocation, subject to a cap of $37740 (wef YA2017)

To encourage self-employed persons to save for their retirement.

13.

Relief for cash top-up of own CPF Special / Retirement Account

Maximum S$7,000 a year

To encourage Singaporeans to save for their retirement.

14.

Relief for cash top-up to the CPF Special / Retirement Account of parents or parents-in-law,grandparents or granparents-in-law, non-working siblings and non-working spouse

Maximum S$7,000 a year

To encourage Singaporeans to save for the retirement of their dependents.

15.

Relief for voluntary contribution directed specifically to own CPF Medisave Account

Subject to a cap of the applicable Basic Healthcare Sum, less balance in Medisave Account before the voluntary cash contribution, and a cap of $37740 less mandatory CPF contributions per YA, whichever is lower.

To encourage Singaporeans to save for their healthcare needs.

16.

Relief for Supplementary Retirement Scheme (SRS) contributions

Relief amount is the actual amount of SRS contribution made by you and/or your employer per YA.(You do not need to make a claim in your tax return as it will be allowed automatically based on information provided by the SRS operator).

To encourage Singaporeans to save for their retirement.

17.

Relief for Course Fees

S$3500 (wef YA2004)

To encourage individuals to upgrade themselves.

18.

Foreign Maid Levy Relief

Twice the annual levy in respect one foreign maid

(subject to maximum of $6360 for YA2017)

To encourage married women to continue working and raise families.

19. Relief for NSmen Active: S$3000

Inactive:S$1500

Key Appointment Holders will receive an additional $2000 in relief
To recognise the contributions of NSmen and NS Key Appointment Holders to Total Defence.

20.

Relief for Wives of NSmen

S $750

To recognise the support given by wives to their husbands serving as NSmen.

21.

Relief for Parents of NSmen

S $750

To recognise the support given by parents to their children serving as NSmen.

22.

Parenthood Tax Rebate (PTR)

 

To encourage couples to have more Singaporean children

 

For all Singaporean children born or legally adopted on or after 1 Jan 2008:

 

 

 

1st child

S$5,000

 

 

2nd child

S$10,000

 

 

3rd child

S$20,000

 

 

4th child

S$20,000

 

 

5th child and beyond

S$20,000 per child

 


Note: From Year of Assessment (YA) 2018, the total amount of personal income tax reliefs which you can be allowed is subject to an overall relief cap of $80000 per YA.

You should continue to claim the personal reliefs if you have met the qualifying conditions. If the total amount of reliefs claimed exceeds the relief cap, the tax reliefs will be capped at $80000.

 

 

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Last Updated on March 15, 2017
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