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:
- A Singapore Citizen who resides in Singapore except for temporary absences; or
- A Singapore Permanent Resident (SPR) who has established a permanent home in Singapore; or
- 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:
- the amount of tax payable after double taxation relief (DTR) and other credits; and
- 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 2017 | Before 20% Personal Tax Rebate | After 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.