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Personal Tax Reliefs in Singapore
Personal tax reliefs and rebates in Singapore are granted to individuals as a form of recognition for their efforts. This is an alternative to compensating these taxpayers, where they are given reliefs and rebates in return instead.
Tax reliefs and rebates in Singapore are used to encourage filial piety, family formation and even the advancement of certain skills through these reliefs given in support of the individuals saving for retirement or serving in the National Service.
Types of Tax Reliefs and Rebates in Singapore in Effect from 2017.
Beginning the financial year of 2017 (known as YA2017) the following tax reliefs and rebates are in effect in Singapore:
- The Earned Income Relief – The objective of this relief is to provide individuals who earn an income from hard work with recognition. Earned income relief is applicable to:
- Those below 55 years old
- Those 55-59 years old
- 60 years old and above
- Spousal Relief – In recognition of taxpayers who have supported their spouses.
- Handicapped Spousal Relief – Applicable for taxpayers who have supported their handicapped spouses.
- Qualifying Child Relief (QCR) – In recognition of families and their efforts raising their children.
- Handicapped Child Relief (HCR) – For families who are caring for a handicapped child.
- Working Mother’s Child Relief (WMCR) – This relief is to help encourage parents to take up Singaporean citizenship for their children.
- Qualifying Singaporean Child – This tax relief is to help encourage married women to remain within the country’s workforce even after having their children.
- Parental Relief – To promote filial piety, S$5,500 is awarded for each dependant if the taxpayer does not stay with the dependant. This claim is applicable for a maximum of 2 dependants. An amount of S$9,000 will be awarded for each dependant if the taxpayer stays with that dependant.
- Handicapped Parent and Sibling Relief – Provides recognition to individuals in Singapore who are caring for their handicapped parents and/or siblings.
- Grandparent Caregiver Relief – In recognition of those grandparents who may be playing a role in helping working mothers care for their children.
- Relief for Approved Pension/Provident Fund Contribution & Life Insurance Premium – To give support to individuals who are saving for their retirement.
- Relief for CPF Contribution by Self-Employed Persons – To encourage persons to save for their retirement.
- Relief for Cash Top-Up of Own SPF Special/Retirement Account – To encourage Singaporeans save for their retirement. This cash top-up is also available for parents or parents-in-law, grandparents or grandparents-in-law, non-working siblings and non-working spouse to help Singaporeans save for the retirement of their dependents.
- Relief for Voluntary Contribution Directed Specifically to Own CPF Medisave Account – To encourage Singaporeans to save for their health.
- Relief for Supplementary Retirement Scheme (SRS) Contributions – Helps encourage Singaporeans to save for their retirement.
- Course Fees Relief – For individuals who want to upgrade themselves.
- Foreign Maid Levy Relief – Helps encourage married women in Singapore to continue working while raising families.
- NSmen Relief – In recognition of the contributions of the NSmen and NS Key Appointment Holders to Total Defence. There is also a relief for the wives and parents of the NSmen available.
- Parenthood Tax Rebate (PTR) – To help encourage couples to have more Singaporean children. There is also a relief available for Singaporean children born or legally adopted after 1 Jan 2008.