The Singapore government rewards and compensates individuals for their efforts with various personal tax reliefs and rebates. These reliefs and rebates are used to encourage family formation and filial piety, as well as certain skills development for individuals serving in the National Service or saving for retirement.
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Types of Singapore Tax Reliefs and Rebates
The following tax benefits are provided to eligible individuals (since YA 2017):
|Tax Relief / Rebate||Description|
|The Earned Income Relief||This relief recognizes and offers incentives to individuals who work hard to earn an income. The aid provided varies depending on the following age groups:
|Spousal Relief||A relief to support taxpayers who are financially caring for their spouses.|
|Handicapped Spousal Relief||Taxpayers who support a handicapped spouse can apply for this relief.|
|Parenthood Tax Rebate (PTR)||This relief encourages families to have more children of Singaporean nationality.|
|Qualifying Child Relief (QCR)||The QCR recognizes the effort families put in to raise their children.|
|Working Mother’s Child Relief (WMCR)||This relief encourages parents to take Singaporean citizenship for their little ones.|
|Qualifying Singaporean Child||Married women who continue to serve the Singapore workforce even after they have children can benefit from this relief.|
|Handicapped Child Relief (HCR)||Families with a handicapped child can benefit from HCR.|
|Parental Relief||S$5,500 is provided for each individual that is dependent on the taxpayer if the taxpayer does not live with the dependent. A taxpayer can claim this relief for a maximum of two dependents. If the taxpayer lives with the dependent, he will receive S$9,000 for each dependent.|
|Handicapped Parent and Sibling Relief||Individuals who care for handicapped siblings of parents can get some aid through this relief.|
|Grandparent Caregiver Relief||Grandparents who help take care of little children at home (while mothers are working) can get the relief.|
|Voluntary Contribution Directed Specifically to CPF Medisave Account||This relief encourages individuals to save money for their health.|
|Relief for Approved Pension, Provident Fund Contribution, and Life Insurance Premium||Tax Relief offered to support individuals who are trying to save for retirement.|
|CPF Contribution by Self-Employed Persons Relief||The relief encourages self-employed individuals to contribute more on CPF for retirement.|
|Cash Top-Up of Retirement Account or Own SPF Special Account||This relief encourages Singaporeans to save for retirement. Family members such as parents, parents-in-law, non-working spouse or siblings, grandparents, grandparents-in-law who help an individual save for retirement can also benefit from a cash top-up.|
|Supplementary Retirement Scheme Contributions Relief||Another relief to motivate Singaporeans to have retirement savings.|
|Relief for Course Fees||A relief to encourage Singaporeans to enrol in various courses and upgrade themselves.|
|Relief for NSmen||This relief recognizes NS men and NS Key Appointment Holders’ contributions to Total Defence.|
|Foreign Maid Levy Relief||This helps Singaporean married women to continue contributing to the local workforce while also raising children.|
Along with the above tax reliefs, learn how you can save even more personal taxes here.
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