Parenthood tax rebate

'Parenthood Tax Rebate' (PTR) is a rebate given to married Singapore tax residents to encourage them to have more children.

Features

• PTR can be used to offset your income tax payable
• PTR may be shared with your spouse based on the apportionment agreed by both parties
• Unutilised PTR will be carried forward to offset future income tax payable, until it is fully utilised. 
  
  

Qualifying criteria

With effect from Year of Assessment (YA) 2009

From Year of Assessment (YA) 2009 onwards,  you can claim PTR if you are a married * Singapore tax resident and the qualifying child is –

(a)  A legitimate child

• Born to  your family on or after 1 January 2008; and
• Becomes a Singapore citizen at the time of birth or within 12 months thereafter.

(b)  An illegitimate child

• Born on or after 1 January 2008 and whose birth occurs before the marriage of  the natural parents; and
• Whose natural parents become lawfully married before he reaches 6 years old; and
• Becomes a Singapore citizen at the time of marriage of his natural parents or within 12 months thereafter.

(c)  A child

• Legally adopted on or after 1 January 2008 but before he reaches 6 years old; and
• Becomes a Singapore citizen at the time of legal adoption or within 12 months thereafter

*married Singapore tax residents include divorced and widowed individuals

Year of Assessment 2008 and before

For YA 2008 and before, you can claim PTR if you are a married* Singapore tax resident and the qualifying child is –

(a)  A 2nd, 3rd or 4th legitimate child

• Born to  your family on or after 1 January 2004; and
• Becomes a Singapore citizen at the time of birth or within 12 months thereafter.

(b)  A 2nd, 3rd or 4th illegitimate child

• Born on or after 1 January 2004 and whose birth occurs before the marriage of  the natural parents; and
• Whose natural parents become lawfully married before he reaches 6 years old; and
• Becomes a Singapore citizen at the time of marriage of his natural parents or within 12 months thereafter.

(c)  A 2nd, 3rd or 4th child

• Legally adopted on or after 1 January 2004 but before 1 January 2006; or
• Legally adopted on or after 1 January 2006 but before he reaches 6 years old; and
• Becomes a Singapore citizen at the time of legal adoption or within 12 months thereafter
  

*married Singapore tax residents include divorced and widowed individuals

When to claim

PTR is to be claimed in the YA immediately following –

• The year of birth for legitimate child;
• The year of adoption for legally adopted child; or
• The year of marriage of  the natural parents for illegitimate child

Any unutilised amount will automatically be carried forward and offset your future income tax payable. Hence, it is not necessary to submit a fresh claim for subsequent YAs.

How much you can claim

From YA 2009 onwards, the PTR has been extended to include 1st child, 5th child and subsequent children.

 PTR may be shared with your spouse based on the basis of apportionment agreed by both parties.

How to claim

If you have submitted your tax form, please let us have the relevant documents:

• a copy of your child's legal adoption papers (for an adopted child)
• a copy of your child's certificate of citizenship (if he/she was not a Singapore citizen at the time of birth)
• a copy of your marriage certificate and child's birth certificate (if you were not legally married to the other natural parent at the time of birth of your child, but were subsequently legally married to the other natural parent of the child before the child reaches 6 years old)
• a copy of custody paper of child/children from previous marriage, if applicable.
  
  and a letter bearing:
• Name, NRIC number and child order of your child
• Basis of apportionment between you and your spouse (e.g. yourself - 50%; your spouse - 50%)
• You and your spouse's full name & NRIC number
  
• You and your spouse's signatures

You may email us the soft copy of the letter, fax to us on 6351 3636 or post the letter to:

The Comptroller of Income Tax
Inland Revenue Authority of Singapore
55 Newton Road, Revenue House
Singapore 307987

We will process your request when we received your application.

How to determine ranking of children

The order of the children is based on:

• Date of birth; OR
• Date of legal adoption

All children in the same household are counted in the ranking, regardless of whether the child qualifies for PTR.

Any sibling who has passed away will still be taken into account in determining the number of siblings a child has at the time of his birth or adoption. A stillborn child (a child for whom no birth certificate has been issued) is not taken into account in determining the number and order of children.

If child is given up for adoption

• In the year of birth
  You will not be entitled to any PTR on the child.
  
• After the year of birth
  The remaining PTR balance on this child will be forfeited. This is with effect from the Year of Assessment following the year the child is given up for adoption.

How to transfer PTR

Any unutilized amount of PTR can be electronically transferred from your account to your spouse's account.

Simply log in to myTax Portal, and you can view your PTR balance or transfer your PTR balance to your spouse.

Find out more about:

• How to transfer PTR online (251KB) 
• FAQs on transfer PTR balance online (45KB) 

Alternatively, you may send us a letter bearing:

• Name, NRIC number and child order of your child
• Amount of PTR you want to transfer
• Your and your spouse's full name & NRIC number
• Your signature

You may email us, fax to us on 6351 3636 or post the letter to:

The Comptroller of Income Tax
Inland Revenue Authority of Singapore
55 Newton Road, Revenue House
Singapore 307987

We will process your request when we received your application.