Review of Personal Income Tax Reliefs vis-a-vis Dependant's Income Threshold and Child's NS Allowances Since 2010

Parliamentary Question by Mr Patrick Tay Teck Guan:

To ask the Minister for Finance whether he will review the personal income tax reliefs in relation to a dependant's income threshold of $4,000 and the child's full-time national serviceman allowances that has increased since 2010.

Parliamentary Reply by Deputy Prime Minister and Minister for Finance, Mr Heng Swee Keat:

Tax reliefs such as Parent Relief, Spouse Relief and Qualifying Child Relief are given to taxpayers to recognise their efforts in supporting their family members.

These reliefs are intended for circumstances where the dependent is handicapped, or is not earning any income. Nevertheless, we recognize that some dependants may derive a small amount of incidental income.  Hence our approach caters for that by setting the dependant’s income threshold at $4,000 a year. This income condition applies to all dependants, including parents, spouses, and children. 

We will continue to review our personal income tax system to ensure continued relevance and effectiveness.