To help cushion the effects of the economic downturn on individuals, all tax residents will be granted an income tax rebate of 20%, up to a maximum cap of $2,000, for Year of Assessment 2009.

The 20% tax rebate is calculated based on the tax payable after double taxation relief (DTR) and other credits but before set-off of the Parenthood Tax Rebate.

If you are a tax resident, IRAS will compute this rebate automatically. You do not need to apply for it.

See overview of tax changes announced in Budget 2009