Personal Tax Rebate (YA 2017)

For the Year of Assessment (YA) 2017, all tax resident individuals will receive an income tax rebate of 20% of tax payable, up to a cap of $500.

Rebate for Tax Residents

For YA 2017, all tax residents will receive an income tax rebate of up to $500

You will be treated as a tax resident for a particular YA if you are:

  1. A Singapore Citizen who normally resides in Singapore except for temporary absences; or  
  2. A Singapore Permanent Resident (SPR) who has established a permanent home in Singapore; or
  3. A foreigner who has stayed / worked in Singapore (excluding director of a company) for 183 days or more in the previous year, i.e. year before the YA.

Amount of Tax Rebate

The tax rebate is calculated based on the following:

  1. the amount of tax payable after double taxation relief (DTR) and other credits; and
  2. the amount of tax payable before offsetting the Parenthood Tax Rebate.

All tax resident individuals will receive an income tax rebate of 20% of tax payable, up to a cap of $500.

Mr and Mrs Chua's first child was born in 2016. Mrs Chua was working and had an earned income of $100,000 for 2016.

They decided that Mrs Chua would claim the full amount of Qualifying Child Relief (QCR) of $4,000. Mr and Mrs Chua are also entitled to Parenthood Tax Rebate (PTR) of $5,000 for their first child, and they agreed to share the amount of PTR equally.

Mrs Chua is a Singapore tax resident for the Year of Assessment (YA) 2017 and her tax computation for YA 2017 is as follows:

 For YA 2017Before 20% Personal Tax RebateAfter 20% Personal Tax Rebate
Employment Income of Mrs Chua$100,000$100,000
Less: Personal Reliefs  
- Earned Income Relief$1,000$1,000
- CPF Relief$20,000$20,000
- NSman Wife Relief $750$750
 - QCR $4,000 $4,000
- WMCR$15,000 (15% x $100,000)$15,000 (15% x $100,000) 
Total Personal Reliefs$40,750$40,750
Chargeable Income$59,250 ($100,000 - $40,750)$59,250 ($100,000 - $40,750)
Tax on First $40,000$550$550
Tax on Next $19,250 @ 7%$1,347.50$1,347.50
Gross Tax Payable by Mrs Chua$1,897.50$1,897.50
Less: Personal Income Tax Rebate (20% of tax payable, up to a cap of $500)N/A$379.50 (20% x $1,897.50)
Less: Parenthood Tax Rebate (PTR) $1,897.50$1,518 ($1,897.50 - $379.50)
Net Tax Payable by Mrs Chua$0 $0
PTR Balance$602.50 ($2,500 - $1,897.50)$982 ($2,500 - $1,518)

 

Applying for Tax Rebate

You do not need to apply for this rebate. IRAS will compute and grant the rebate automatically to all tax residents.

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