Tax reliefs and rebates are allowable if:
- You are a Singapore tax resident; and
- You meet the qualifying conditions in the year preceding the Year of Assessment (YA).
For example, if your child was born in 2020, child-related reliefs and rebates in respect of him/her will be considered with effect from YA 2021. Please note that a personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed for each YA.
Qualifying Child Relief (QCR)/Handicapped Child Relief (HCR)
QCR and HCR are given to recognise the efforts of families in supporting their children.
Example 1: Sharing QCR on a child
Mr and Mrs Tan have a child born. They have agreed to share the QCR of $4,000 equally.
Hence, they will each claim QCR of $2,000 in their Income Tax Returns.
Working Mother's Child Relief (WMCR)
WMCR is given to:
- Encourage married women to remain in the workforce after having children
- Encourage parents to take up Singapore Citizenship for their children
- Reward families with children who are Singapore Citizens
Example 2: Claiming WMCR on the first child
Mr and Mrs Lim had their first child in 2020. Mrs Lim was working and had an earned income of $100,000 for that year. The amount of WMCR she may claim for the Year of Assessment 2021 is $15,000 (i.e. $100,000 x 15%).
Parenthood Tax Rebate (PTR)
PTR is given to Singapore tax residents to encourage them to have more children. If you are married and have a child who is a Singapore Citizen, you may claim for PTR in the relevant year.
Example 3: Claiming PTR on the first child
Mr and Mrs Koh had their first child (Singapore Citizen) in 2020. They are entitled to PTR of $5,000 for their first child and have agreed to share the PTR equally.
Mr and Mrs Koh’s gross tax payable for the Year of Assessment (YA) 2021 are $2,930 and $1,802.30 respectively. The PTR to be utilised for YA 2021 are as follows:
|Mr Koh||Mrs Koh|
|Gross Tax Payable||$2,930||$1,802.30|
|Less: Personal Income Tax Rebate||N/A||N/A|
|Less: Parenthood Tax Rebate||$2,500*||$1,802.30*|
|Net Tax Payable||$430.00||$0|
* Mr Koh has fully utilised his share of the PTR in YA 2021, while Mrs Koh only utilised $1,802.30. The unutilised amount of PTR (i.e. $697.70) in Mrs Koh’s account will be automatically carried forward to offset her income tax payable for the subsequent YA(s), until it has been fully utilised.
Foreign Domestic Worker Levy (FDWL) Relief
FDWL Relief is given to encourage married women to stay in the workforce. Married women and divorcees/widows with school going children may claim relief for foreign domestic worker levy paid in the previous year. Singles and married men are not eligible for this relief.
Example 4: Husband paid levy at concessionary rate in 2020
Mr Lee employed a foreign domestic worker from Oct 2020 to Dec 2020 and paid levy at concessionary rate.Mrs Lee may claim FDWL Relief of $360 for the Year of Assessment (YA) 2021.
|Levy rate per month||$60|
|No. of months levy paid in 2020||3|
|Total levy paid in 2020||$180|
|Amount claimable in YA 2021||$360 (2 x $180)|
Grandparent Caregiver Relief (GCR)
GCR is given to working mothers who engage the help of their parents, grandparents, parents-in-law or grandparents-in-law (including those of ex-spouses) to take care of their children. Single taxpayers or male taxpayers are not eligible for this relief.
Example 5: Mother-in-law helped to take care of child
Mr and Mrs Sim had their first child (Singapore Citizen) in 2020. Mrs Sim is a working mother and has engaged the help of her mother-in-law to take care of the child. Her mother-in-law was living in Singapore and not working or carrying on any trade, business, profession or vocation in 2020. In addition, no one else is claiming GCR on her mother-in-law. Hence, Mrs Sim may claim GCR of $3,000 on her mother-in-law for the Year of Assessment 2021.
NSman Wife Relief
NSman Wife Relief of $750 is given to the wives of NSmen to recognise the support they give to their husbands. You will be entitled to this relief if the following conditions are met:
- You are a Singapore Citizen in the year preceding the Year of Assessment; and
- Your husband is eligible for NSman Self Relief.
Widows of deceased NSmen will still be eligible for the relief unless they have re-married.
You do not need to claim this relief as IRAS will automatically grant it to you based on your eligibility.
Example 6: Summary of reliefs and rebates
Mr and Mrs Ng had their first child (Singapore Citizen) in 2020. They agree to share the Qualifying Child Relief and Parenthood Tax Rebate equally.
Mrs Ng is a working mother and has engaged the help of her mother-in-law to take care of her child. Mr Ng had employed a foreign domestic worker from Oct 2020 to Dec 2020 and paid levy at concessionary rate. In addition, he had performed NS activities in 2020. The tax computation for Year of Assessment 2021 is as follows:
|Mr Ng||Mrs Ng|
|Less: Personal Reliefs|
|- Earned Income Relief||$1,000||$1,000|
|- Qualifying Child Relief||$2,000||$2,000|
|- Working Mother's Child Relief||-||$15,000 ($100,000 x 15%)|
|- Grandparent Caregiver Relief||-||$3,000|
|- Foreign Domestic Worker Levy Relief||-||$360 ($60 x 3 months x 2)|
|- NSman Self / Wife Relief||$3,000||$750|
|- CPF Relief||$20,000||$20,000|
|Total Personal Reliefs||$26,000||$42,110|
|Chargeable Income||$74,000 ($100,000 - $26,000)||$57,890 ($100,000 - $42,110)|
|Tax on First $40,000||$550||$550|
|Tax on Next $34,000 / $17,890 @ 7%||$2,380.00 ($34,000 x 7%)||$1,252.30 ($17,890 x 7%)|
|Gross Tax Payable||$2,930.00||$1,802.30|
|Less: Personal Income Tax Rebate||N/A
|Less: Parenthood Tax Rebate||$2,500.00*||$1,802.30*|
|Net Tax Payable||$430.00||$0|
* Mr Ng has fully utilised his share of the PTR in YA 2021, while Mrs Ng only utilised $1,802.30. The unutilised amount of PTR (i.e. $697.70) in Mrs Ng’s account will be automatically carried forward to offset her income tax payable for subsequent Years of Assessment) until it has been fully utilised.
Example 7: Summary of reliefs and rebates with relief cap of $80,000
Mr and Mrs Chua have 3 children (Singapore Citizens) aged 7, 10 and 12 in 2020.
Mrs Chua had employed a foreign domestic worker in 2020 and paid levy at concessionary rate.
Mr Chua had performed NS activities in 2020 and would be claiming the full amount of Qualifying Child Relief on the 3 children.
The tax computation for Mrs Chua in Year of Assessment (YA) 2021 is as follows:
|Less: Personal Reliefs|
|- Earned Income Relief||$1,000|
|- Working Mother's Child Relief (WMCR) on 1st child||$18,000 ($120,000 x 15%)|
|- WMCR on 2nd child||$24,000 ($120,000 x 20%)|
|- WMCR on 3rd child||$30,000 ($120,000 x 25%)|
|- Foreign Domestic Worker Levy Relief||$1,440 ($60 x 12 mths x 2 times)|
|- NSman Wife Relief||$750|
|- CPF Relief||$20,400|
|Total Personal Reliefs||$95,590|
|Total Personal Reliefs after capping||$80,000|
|Chargeable Income||$40,000 ($120,000 - $80,000)|
|Gross Tax Payable||$550|
|Less: Personal Income Tax Rebate||N/A|
|Less: Parenthood Tax Rebate||-*|
|Net Tax Payable||$550.00|
* Mrs Chua has fully utilised her Parenthood Tax Rebate in prior YAs.