Parenthood tax rebate may be enjoyed without time limit06 Oct 2005
I refer to the letter on 2 September 2005 by Ms Lin Cuibao who expressed concern that her Special Tax Rebate (STR) was expiring and requested for the unused tax rebate to be transferred to her child's Edusave account.
Ms Lin may be pleased to know that any remaining balance of the STR in the Year of Assessment 2004 will be automatically transferred to the new Parenthood Tax Rebate (PTR) scheme. The PTR has no time limit, unlike the STR, which had a time limit of 9 years.
The Marriage and Parenthood package provides both tax rebates, like the PTR, and cash grants, like the Baby Bonus. Tax rebates are used to offset against taxes payable. As they are not cash grants, there is no cash to be transferred to the Edusave account.
HAN KOK JUAN
DIRECTOR (SOCIAL & SECURITY PROGRAMMES)
MINISTRY OF FINANCE