Personal Income Tax

It is the Government’s policy to keep our Personal Income Tax regime competitive and progressive. This encourages employment, innovation and enterprise, while ensuring that higher-income earners pay higher taxes.

What are the Personal Income Tax rates?

The amount of Personal Income Tax payable depends on the amount of income earned in the year and the amount of tax deduction, tax reliefs and tax rebates applicable in each individual case.

Please refer to IRAS’ website for the prevailing Personal Income Tax rate structure and other details on Personal Income Tax.

What Personal Income Tax reliefs and rebates are available?

The various types of Personal Income Tax reliefs are in line with our social objectives, such as taking care of elderly parents and saving for retirement. The tax reliefs can reduce one’s taxable income. There is also the Parenthood Tax Rebate, which is given to encourage the birth of Singaporean children after marriage.

Please refer to IRAS’ website for more details.

What is the Personal Income Tax relief cap and how does it work?

The Personal Income Tax relief cap serves to keep our tax system progressive. It puts an overall cap on the amount of tax reliefs that an individual can claim at $80,000 per Year of Assessment.

Does the Personal Income Tax relief cap apply to donations?

The tax relief cap does not apply to tax deduction for donations, as this is not a Personal Income Tax relief.

Personal Income Tax Reliefs and Rebates

The Government provides various tax reliefs and rebates to promote certain social objectives, such as encouraging marriage and family formation, recognition for taxpayers who support their dependants, and saving for retirement.

Please refer to IRAS’ website for more details.

Personal Income Tax Relief Cap

Over the years, the Government has introduced and enhanced reliefs significantly. Today, there are 15 tax reliefs. Each relief serves an objective. But, taken together, the reliefs can unduly reduce the taxable income.

Budget 2016 saw the introduction of a $80,000 tax relief cap per Year of Assessment. Ninety-nine per cent of tax residents can claim their reliefs without being affected by the cap, including 9 out of 10 working mothers who claimed the Working Mothers’ Child Relief. The remaining one per cent of tax residents who are expected to be affected, can still enjoy tax reliefs, up to a cap of $80,000 per year of assessment.

The Government remains committed to supporting Singaporeans in fulfilling their marriage and parenthood aspirations. Over the years, the Government has added and significantly enhanced various schemes to support parents in having children.

The tax relief cap is to keep our tax system progressive. Nonetheless, even with the cap, our tax burden remains competitive.

The tax relief cap does not apply to the tax deduction for donation. This deduction is not a personal income tax relief.

Tax Deduction for Donations

To continue encouraging Singaporeans to give back to the community and to provide strong support for the charity sector, the Minister for Finance announced in Budget 2023 that 250% tax deductions for qualifying donations will be extended for another three years until 31 December 2026.

Table 1 below further elaborates on the types of donations that will be granted the 250% tax deduction.

Table 1: Qualifying Donations for 250% Tax Deductions

Donation Scheme	Eligible Recipient	Eligible Donor
Cash donations	Approved IPCs and the Singapore Government	All donors
Gift of shares listed on the Singapore Exchange (SGX) or of units in unit trusts traded in Singapore	Approved IPCs	Individual donors only
Gifts of artefacts	Approved museums (by the National Heritage Board)	All donors
Donation of public sculptures	The National Heritage Board or approved recipients	All donors
Gifts of parcels of land or buildings	Approved IPCs	All donors

In addition, as of 1 Jan 2005, the following donations with naming opportunities will be granted the 250% tax deduction::

Donations to name IPCs, IPC facilities, events or programmes,
Donations to name facilities of approved beneficiaries (including artefacts and public sculptures) under any of the other approved donation programmes,
Donations under any of the approved donation programme where the IPC or approved beneficiary acknowledges the donation by including the donor's name or logo in the IPC's collaterals (e.g. banners, publications, advertisements).

The 250% tax deduction will not be given in cases where the donor is essentially advertising at the IPC facility, event or programme. Donors displaying their banners, products, or other collaterals at the IPC facility, event, or programme to which it has donated is regarded as advertising or marketing expenses and not a donation.

Other forms of in-kind donations that do not fall under Table 1 or are not eligible naming opportunities as indicated above will not be awarded the 250% tax deduction.

Revision for Donation Scheme on Gifts of Computer Hardware, Software and Peripherals

Tax deduction scheme for donation of computer hardware, software and peripherals has been withdrawn with effect from 21 February 2017. A company that donates computers to a prescribed educational, research or other institution in Singapore and IPC on or after 21 February 2017 would not be eligible for any tax deduction.

Previous enhancement to tax deductions on donations

In conjunction with SG50, the Government increased the tax deduction from 250% to 300%, for qualifying donations made from 1 January 2015 to 31 December 2015 only. Please note that tax deduction for donations made from 1 January 2016 to 31 December 2026 will be at 250%. All existing criteria to qualify for tax deduction remain unchanged.