Earned Income Relief

Earned Income Relief is for individuals who are gainfully employed or carrying on a trade, business, profession or vocation.

Qualifying for Earned Income Relief

You will receive this relief if you have taxable income from any of the following sources in the previous year:

Earned Income

This refers to the taxable earned income from employment, pension, trade, business, profession or vocation less allowable expenses.

 

Amount of Earned Income Relief

The amount of relief is based on your age and taxable earned income in the previous year.

The table shows the maximum amount claimable.

Your age as of 31 Dec the previous year

Year of Assessment (YA) 2013 onwards

Below 55

$1,000

55 to 59

$6,000

60 and above

$8,000

If the amount of taxable earned income is lower than the maximum amount claimable, the relief will be capped by the amount of taxable earned income.

If you are 55 years old and earned income in 2016, you will get Earned Income Relief of $6,000 or the amount of earned income, whichever is less, for the Year of Assessment 2017.

Earned Income Relief for Handicapped Persons

A higher Earned Income Relief will be given for those with permanent physical or mental disability that severely affects their ability to work.

The table shows the maximum amount claimable.

 Your age as of 31 Dec the previous year Year of Assessment 2012 and beforeYear of Assessment 2013 onwards 
 Below 55 $2,000 $4,000
55 to 59  $5,000 $10,000
60 and above  $6,000 $12,000

 If the amount of taxable earned income is lower than the maximum amount claimable, the relief will be restricted to the amount of taxable earned income.

Claiming Earned Income Relief

You do not need to claim Earned Income Relief. If you are eligible, we will automatically grant this relief to you when we process your tax return.

First-Time Claim for Handicapped Earned Income Relief

Those claiming Handicapped Earned Income Relief for the first-time must complete and submit the Handicapped-Related Tax Relief form (243KB) by email.

You also need to complete your tax return as follows:

  • If you submit paper Form B or B1 : enter details of your handicap in Appendix 2 of Form B or B1 and submit together with your Form B or B1.
  • If you file your tax return online : enter details of your handicap under Section “4. Deductions, Reliefs and Parenthood Tax Rebate” >> “Earned Income Relief”.

We will automatically grant you Handicapped Earned Income Relief in subsequent years if you are eligible. You do not need to enter your claim in your tax return in subsequent years.

  • I have filed my tax return for the Year of Assessment (YA) 2017. This is my first time claiming Handicapped Earned Income Relief. What should I do if I have forgotten to claim the relief?

    Complete and submit the Handicapped-Related Tax Relief form (243KB) by email. In addition, please amend your filing as follows:

    (a) If you have filed your tax return online

    Re-file within 14 days of your previous submission or by 18 Apr 2017, whichever is earlier. You can only re-file once.

    When you re-file, you must include all your income details and expenses, donations and relief claims, where applicable. Once you have re-filed successfully, your new submission will override the previous submission.

    If you could not re-file, please email us by stating your request to claim or revise the relief for YA 2017.

    (b) If you have filed a paper tax return

    Please email us stating your request to claim or revise the relief for YA 2017.

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