What is income tax relief?
Income tax relief refers to the government’s specific deductions or exemptions to taxpayers to reduce their taxable income. These reliefs are designed to incentivise certain behaviours or circumstances that contribute to the overall well-being of individuals or society.
Tax residents can only claim tax relief, including non-Singapore Citizens who spend more than 183 days in Singapore within a year.
Ensuring you meet the eligibility requirements for the specific reliefs before applying is important. Take the time to review and confirm if you satisfy the qualifying conditions before making any claims for tax relief.
What are the types of income tax reliefs available in Singapore?
- Earned Income Relief
This relief is intended for individuals actively employed or involved in a trade, business, profession, or vocation to earn income.
- Spouse/Handicapped Spouse Relief
This relief acknowledges the contribution of taxpayers, regardless of gender, who have provided support to their spouses.
- Foreign Domestic Worker Levy Relief
The FDWL Relief is provided as an incentive to encourage married women to remain active in the workforce. This relief is exclusive to married women; singles and married men are ineligible for FDWL Relief.
- CPF Relief for Employees
The CPF Relief is granted to motivate individuals to save for retirement. It can be claimed by employees who are either Singapore Citizens or Singapore Permanent Residents.
- CPF Relief for Self-Employed
Self-employed individuals who also work as employees can receive relief on their CPF contributions, which helps reduce the tax they must pay.
- NSman (Self) Relief
All eligible NSmen who are operationally ready National Servicemen are eligible for NSman tax relief. This relief is provided to acknowledge their contributions to National Service. The NSman Relief is based on the national service performed in the preceding work year.
In addition, NSman Wife Relief and NSman Parent Relief are also granted to the wives and parents of NSmen, respectively. These reliefs are given to recognise the support they provide to their husbands and sons who are serving in National Service.
- NSman (Wife) Relief
- NSman (Parent) Relief
- Parent/Handicapped Parent Relief
This relief is provided to encourage and acknowledge individuals fulfilling their responsibilities towards supporting their parents, grandparents, parents-in-law, or grandparents-in-law in Singapore. It aims to promote the value of filial piety and recognise the efforts made by individuals in caring for and providing financial support to their elderly family members.
- Grandparent Caregiver Relief
GCR is provided to working mothers who enlist the assistance of their parents, grandparents, parents-in-law, or grandparents-in-law (including those of former spouses) to provide care for their children.
- Qualifying/Handicapped Child Relief
Parents are provided QCR and HCR to acknowledge and appreciate their dedication to caring for their children. These reliefs are designed to recognise parents’ financial responsibilities and efforts in raising and providing for their children.
- Working Mother’s Child Relief
WMCR is granted to achieve the following objectives:
- Promote the continued participation of married women in the workforce even after becoming parents.
- Encourage parents to choose Singapore Citizenship for their children.
- Recognise and provide incentives for families with children who hold Singapore Citizenship.
- Handicapped Brother/Sister Relief
This relief is for those who support and care for their siblings and siblings-in-law with disabilities or special needs.
Additionally, there are other reliefs that individuals can claim if they meet the eligibility criteria:
- Life Insurance Relief
- Course Fees Relief
- SRS Relief
- CPF Cash Top-up Relief
- CPF Relief (Compulsory and Voluntary Medisave Contributions)
Is there a cap for income tax relief in Singapore?
When the sum of claimed reliefs surpasses the relief cap, the tax reliefs will be limited to a maximum of S$80,000.
The information provided was accurate at the time of publication. For the latest changes and updates, head over to the official website.
