Deductions & Reliefs
Q1. Do I need to complete the 'Deductions and Reliefs' section if my claims are the same as last year's? A1. The following deductions and reliefs are allowed automatically based on your eligibility and records from the relevant authorities. a. b. c. Earned Income Relief NSman Relief for NSman, wife or parent of NSman Relief for CPF Cash Top-Up of Retirement Accounts under the CPF Minimum Sum Scheme d. e. Relief for contributions to the Supplementary Retirement Scheme Donations i. Donations deducted through your salary if your employer is participating in the Auto-Inclusion Scheme for Employment Income ii. Outright cash donations to approved Institutions of Public Character (IPC) in Singapore to whom you have given your Singapore NRIC /FIN (Foreign Identification Number) iii. Donations to an approved IPC in the form of shares of public companies listed on the Singapore Exchange or units in unit trusts that are readily tradable in Singapore
Other than the above, you need to claim the tax reliefs/donation as they are not granted automatically even though the tax reliefs you want to claim may be the same as that of the previous year. Please ensure that you meet all the conditions of claim.
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Deductions & Reliefs
Q2. How do I provide particulars of my new claim for relief, or changes in particulars of my claim for relief, through e-Filing? A2. You only need to enter your claim and give particulars if this is the first time you are claiming the tax relief. If there are changes in the particulars of your claim, you only need to enter the changes. To provide the details of your particulars, please carry out the following steps: a. Click “Here” button under item „Total Deductions And Reliefs” in the Main Tax Form to access Deductions and Reliefs Page. For example, to provide particulars of your children, click “Here” button under item „Child‟ in the Deductions and Reliefs Page. b. Enter your claim and particulars. If you are sending other documents to us, for example, your children's birth certificates, you may submit them by fax at this number 6351 3636 or post your documents to Inland Revenue Authority of Singapore, 55 Newton Road, Revenue House, Singapore 307987.
Q3. How do I claim for donations through e-Filing? A3. You do not have to claim for donations as they will be automatically included in your assessment if they fulfill the following conditions. a. Your donations are deducted from your salary and your employer is in the Auto-Inclusion Scheme for Employment Income. For the list of employers who have submitted their employees' income to IRAS, click HERE. b. You have given your NRIC /FIN (Foreign Identification Number)
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Deductions & Reliefs
number to approved Institutions of Public Character (IPC) in Singapore for the purpose of making the following kinds of donations: i. ii. iii. Outright cash donations made to approved IPC Donations made to approved IPC via GIRO Donations to approved IPC in the form of shares of public companies listed on the Singapore Exchange or units in unit
trusts that are readily tradable in Singapore iv. v. Donations to approved museums in the form of artefacts Donations to approved IPC in the form of parcels of land or buildings vi Adoptions/donations/commissions or displays of national sculpture to National Heritage Board (NHB) or any of its approved recipients
To claim for donations through e-Filing: a) View the details of your donations that have been submitted directly to IRAS by the relevant organisations in your Income, Deductions and Reliefs Statement (IDRS). If the donations details are incorrect: i. check directly with the Institutions of Public Character (IPC) to whom you made the donations. ii. advise the respective IPC to inform IRAS of the amendment, if any. iii. proceed to file your tax return if the amendment cannot be made in time. We will include the amended figures in your assessment later.
b) If your donation is deducted from your salary and your employer is not in the Auto-Inclusion Scheme for Employment Income, click “Here” button under item „Total Deductions And Reliefs‟ in the Main Tax Form to access Deductions and Reliefs Page. To access the Donations page, click ”Here” 3
Deductions & Reliefs
button under item „Donations and Zakat Expenses‟ in the Deductions and Reliefs Page. Enter the amount of donations in the field ‘Total donations shown on Form IR8A’. A deduction of twice the total amount of donation made will be automatically calculated and shown under “Amount Allowable (S$)” column. c) If you have not given your NRIC /FIN number to the IPC, click “Here” button under item „Total Deductions And Reliefs‟ in the Main Tax Form to access Deductions and Reliefs Page. To access the Donations page, click “Here” button under item „Donations and Zakat Expenses‟ in the Deductions and Reliefs Page. Enter the required information. A deduction of twice the total amount of donation made to an approved IPC in Singapore will be automatically calculated and shown under “Amount Allowable (S$)” column. d) Any unutilised donation can be carried forward to offset the taxable income of the donor for any subsequent year, up to a maximum of 5 years.
Q4. Am I eligible for Personal Relief? A4. The personal relief of $3,000 is no longer available as it has been fully incorporated into the personal income tax rate structure since the Year of Assessment 2003.
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Deductions & Reliefs
Q5. How do I claim for Earned Income Relief/Handicapped Earned Income Relief? A5. a) Every resident individual is entitled to a deduction against income earned from employment, pension, trade, business, profession and vocation. You do not have to make this claim as we will allow this in your assessment based on your eligibility. b) Only the acting partner can claim the earned income relief on his share of partnership income. The sleeping partner is not eligible for this claim. c) A taxpayer who is suffering from any physical or mental disability, which permanently and severely restricts his/her capability to work, will be allowed the Handicapped Earned Income Relief. The taxpayer has to give the details of his/her handicap only if he/she is making the claim for the first time.
Q6. How do I claim for CPF Cash Top-Up Relief? A6. a) If you are a Singapore NRIC holder and have topped-up in cash, your own, your parents', grandparents', non-working spouse's or siblings‟ retirement accounts under the CPF Minimum Sum Scheme in 2007, you will get an automatic deduction of the amount topped up, up to a maximum deduction of $7,000 per year. b) If you have topped-up your non-working spouse's or sibling‟s account, he or she must be at least 55 years old and must not have exceeded $2,000 in the year preceding the year of top-up. 5
Deductions & Reliefs
c)
You will not get a deduction if you transferred money from your CPF account to your own, your parents', grandparents', non-working spouse‟ or siblings‟ CPF retirement accounts. It must be a cash top up.
Q7. How do I claim for my Supplementary Retirement Scheme (SRS) contribution? A7. a) You do not need to claim Supplementary Retirement Scheme (SRS) contributions as relief for this contribution is automatically based on information provided by the SRS operators. b) If you are a foreigner or a Singapore Permanent Resident who is seeking tax clearance and wish to claim a relief on your contributions made in the year of cessation of residence or departure from Singapore, you need to send us a statement from the SRS operator.
Q8. How do I claim for NSman Relief? A8. a) You do not have to claim NSman Relief as IRAS will automatically allow this in your assessment. The amount is based on your eligibility from records of the Ministry of Defence (MINDEF) or Ministry of Home Affairs (MHA). b) If your wife is a Singapore citizen who has taxable income, she will get an automatic deduction of $750. If you have children who are operationally ready NSmen, you and your wife/ex-wife must be Singapore citizens to get an
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Deductions & Reliefs
automatic deduction of $750 each. Only 2 parents will be allowed the relief for the same NSman. c) Each individual is only entitled to one claim for this relief. The deduction allowed is the one with the higher amount.
Q9. How do I claim for Wife Relief? A9. a) You may deduct $2,000 if you were living with your wife or supporting her in the year 2007 so long as her income was not more than $2,000 in that year. You may not deduct Wife Relief if she had an income of more than $2,000 in 2007. b) If you are divorced or legally separated, you may deduct up to $2,000, depending on the amount of alimony or maintenance paid to her in 2007. c) The total deductions for Wife Relief must not exceed $2,000. If you have claimed Wife Relief, no other person is allowed to claim any other reliefs apart from Grandparent Caregiver Relief on your wife.
Q10. My spouse is handicapped. How do I claim any relief? A10. a) If you supported a physically or mentally disabled spouse in 2007, you may claim Handicapped Spouse Relief, of $3,500. Your spouse's income must not have been more than $2,000 in 2007. b) If you claim Handicapped Spouse Relief, you cannot claim Wife Relief.
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Deductions & Reliefs
c) If you are divorced or legally separated, you may deduct up to $3,500, depending on the amount of maintenance stated in the court order or deed of separation. d) If you have claimed this relief, no other person is allowed to claim any other reliefs apart from Grandparent Caregiver Relief on your spouse.
Q11. How do I claim for Child Relief? A11. You can claim child relief under the following conditions. a) Your child was unmarried and was under 16 years old at any time during the year 2007. b) If 16 years old and above, your child must have been: i. receiving full-time education at a school, college, university or other educational establishment in the year 2007; ii. iii. c) serving under articles / indentures in the year 2007; unmarried.
No relief is allowed where the child's income exceeded $2,000 in the year 2007. This income excludes scholarships or similar allowances but includes National Service allowance.
d)
The child order is based on the date of birth or date of legal adoption for a child adopted on or after 1 January 2004.
Q12. What is the amount for Handicapped Child Relief? A12. 8
Deductions & Reliefs
Handicapped Child Relief (HCR) of $3,500 is allowed to the parent of an unmarried child under the following conditions. a) The child is physically / mentally handicapped. b) The child's income was not more than $2,000 in the year 2007.
Q13. What are the conditions for claiming Working Mother's Child Relief (WMCR)? A13. A working mother who is married, divorced or widowed can claim Working Mother's Child Relief (WMCR) for her 1st to 4th children under the following conditions: a) b) c) The child must be unmarried. The child must be a Singapore citizen as at 31 December 2007. Your child must have fulfilled all the conditions for the claim of Child Relief.
You must indicate the order of birth for each child when you file your tax form. WMCR will then be calculated automatically based on your eligibility.
Q14. Can my husband and I share the WMCR? A14. No. This relief is only for working mothers.
Q15. What are the conditions for claiming Parent/Handicapped Parent Relief? A15. You may claim Parent / Handicapped Parent Relief if you supported your or your spouse's parents, grandparents or great-grandparents in 2007 under the following conditions: 9
Deductions & Reliefs
a. b.
These family members must have been living in Singapore in 2007. They must be 55 years old or more in 2007 or physically or mentally handicapped. Please give details of the handicap if this is your first claim.
c.
Each dependant must not have had an income of more than $2,000 in 2007.
d.
You may deduct $5,000 for each dependant if any one or all of them lived with you in the same household in Singapore in 2007.
e.
If they did not live with you in the same household in Singapore in 2007, you may deduct only $3,500 for each dependant. However, you must have incurred at least $2,000 to support each of them in 2007.
f.
If you have supported a handicapped parent in 2007, you may be granted an additional $3,000 on top of the Parent Relief.
g.
You can claim either Parent Relief or Handicapped Parent Relief for up to 2 dependants.
h.
If you have claimed this relief, no other person is allowed to claim other reliefs on the same dependant apart from Grandparent Caregiver Relief.
Q16. How do I claim for parent relief if my parent passed away in the year 2007? A16. Tax reliefs are allowable on a preceding year basis. You may claim Parent/ Handicapped Parent Relief as long as your parent was alive on 1.1.2007. You must however, fulfill the conditions for claiming Parent / Handicapped Parent Relief.
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Deductions & Reliefs
Q17. What are the conditions for claiming Grandparent Caregiver Relief (GCR)? A17. You may deduct $3,000 for one of the following. a) b) c) Your parent or grandparent Your spouse's parent or grandparent Your ex-spouse's parent or grandparent
You may claim Grandparent Caregiver Relief (GCR) under the following conditions. a) b) You are a working mother who is married, divorced or widowed. Your or your spouse's or your ex-spouse's parent or grandparent must: i. ii. be living in Singapore; be looking after any of your children who is a citizen of Singapore and is 12 years old or younger in 2007; iii. not be carrying on any trade, business, profession, vocation or employment. c) If you have claimed GCR, no other person is allowed to claim this relief for the same dependant.
Q18. Can I share Grandparent Caregiver Relief (GCR) with my husband? A18. No. This relief is only for working mothers.
Q19. Can I claim Grandparent Caregiver Relief (GCR) on the child's greatgrandparent?
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Deductions & Reliefs
A19. Yes. However, the maximum amount of Grandparent Caregiver Relief (GCR) a working mother can claim is $3,000 for her parent/ parent-in-law or of her grandparent/grandparent-in-law.
Q20. I am claiming Parent Relief. Can I also claim Grandparent Caregiver Relief? A20. Yes. You can claim Grandparent Caregiver Relief in addition to the Parent Relief.
Q21. I am claiming Foreign Maid Levy relief. Can I also claim Grandparent Caregiver Relief? A21. Yes. You can also claim Grandparent Caregiver Relief if you satisfy the conditions for this claim.
Q22. How do I claim relief for CPF contributions? A22. a) If your employer is in the Auto Inclusion Scheme for employment income You do not need to claim for CPF contributions deducted from your salary Your employer will provide details of your income and deductions to IRAS. For the list of employers who have submitted their employees' income to IRAS, click HERE. b) If your employer is not in the Auto Inclusion Scheme for employment income i. One employer 12
Deductions & Reliefs
If you were an employee and a Singaporean or Singapore Permanent Resident, in 2007, you may deduct your mandatory CPF contributions to an approved pension or provident fund. Such contributions must not be more than the mandatory contributions under the CPF Act.
.ii.
Multiple employers If you have worked for more than one employer in the year 2007, add up the amount of CPF contributions from all the various employers and enter the total amount in the field provided. Do not include the employers under the Auto-Inclusion Scheme for Employment Income.
.c.
Self-employed Person i. Medisave contribution to CPF is compulsory if you are a selfemployed Singaporean or Singapore Permanent Resident and you earned a net trade income of more than $ 6,000 in 2007. Medisave contribution is determined based on your net trade income assessed at the rates specified in the following table.
Amount of Compulsory Medisave Contribution
Yearly Net Trade Income Age Below 35 Above $6,000 to $12,000 Contribution rate 2.17% Above $12,000 to $18,000 Contribution rate Between 2.17% and 6.5% Between 2.5% and 7.5% Above $18,000 Contribution rate 6.5% (up to a max. of $3,510) 7.5% (up to a max. of $4,050)
35 to below 45
2.5%
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Deductions & Reliefs
45 and above
2.83%
Between 2.83% and 8.5%
8.5% (up to a max. of $4,590)
ii.
As a self-employed person, you may deduct your compulsory and voluntary CPF contributions made in 2007 up to 34.5% of your assessable income derived from your trade, business, profession or vocation or $26,393, whichever is lower.
d.
If your combined compulsory CPF contributions as an employee and as a self-employed person were less than $26,393, you may deduct voluntary CPF contributions. However, your total deductions for compulsory and voluntary CPF contributions must not be more than $26,393.
Q23. How do I claim relief for life insurance premium? A23. a) You need not give details of your life insurance premiums deducted from your salary if your employer is in the Auto-Inclusion Scheme for Employment Income. Your employer will provide details of your income and deductions to IRAS. b) If you bought your insurance policy on or after 10 August 1973, your insurance company must have an office or a branch in Singapore. c) The total amount of relief allowed for CPF or Designated or Approved Provident Fund contributions and Life Insurance premiums must not exceed $5,000. Therefore, no deduction will be allowed for life insurance
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Deductions & Reliefs
premiums paid if the CPF or Designated or Approved Provident Fund contributions are more than $5,000. d) You may deduct the life insurance premiums you paid for life insurance policies on your life or your wife's life. e) Premiums paid for life insurance policies on your child's life are not allowed. f) The amount of relief you may deduct must not be more than 7% of the insured value of your life or your wife's life.
Q24. I attended some courses last year. How do I claim for any relief? A24. a) If you attended a course in 2007 leading to approved vocational, academic or professional qualifications or attended conferences and seminars relating to your existing trade, business, profession or employment, you may deduct up to $3,500 for the course fees or registration fees. b) The course fees you may claim include registration fees or enrolment fees, examination fees, tuition fees and aptitude test fees (for computer courses). c) d) You cannot claim living expenses, expenses for textbooks or travelling. If you have completed courses, seminars or conferences on or after 1 January 2007 that are not relevant to your current trade, business, profession, vocation or employment, and you change to a relevant trade, business, profession, vocation or employment within 2 years from the
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Deductions & Reliefs
Year of Assessment in which you completed the courses, seminars or conferences, you may claim the course fee relief.
Q25. I would like to claim Foreign Maid Levy (FML) relief, what is the maximum amount that I can claim? A25. a) You may claim two times the amount of Foreign Maid Levy (FML) paid for one maid in the year 2007, up to $4,440 (if you qualify for the concessionary levy of $170 per month);or $6,720 for the Year of Assessment 2008.
b) This relief is only deductible against the woman's earned income, regardless of whether the levy was paid by her or her husband. c) You may claim Foreign Maid Levy (FML) relief if you are: i. ii. iii. a married woman who lived with your husband; a married woman but your husband did not live in Singapore; separated from your husband, divorced or widowed and in the year 2007 had any unmarried children who lived with you on whom you could claim Child Relief. Single female taxpayers and male taxpayers are not eligible for this relief.
Q26. What are the conditions for claiming Parenthood Tax Rebate (PTR)? A26.
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Deductions & Reliefs
a)
You may claim Parenthood Tax Rebate (PTR) if you are a tax resident of Singapore who has a: legitimate 2nd, 3rd or 4th child born on or after 1 January 2004 ; 2nd, 3rd or 4th child legally adopted on or after 1 January 2004 but before 1 January 2007 while married, divorced or widowed; or 2nd, 3rd or 4th child born to you on or after 1 January 2004 and you were not legally married to the other natural parent at the time of birth of your child but were subsequently legally married to the other natural parent of the child before the child reaches 6 years of age; or 2nd, 3rd or 4th child legally adopted on or after 1 January 2007 while married, divorced or widowed if the child is adopted before he reaches 6 years of age.
i.
ii.
iii.
iv.
b)
The child must: i. be a Singapore citizen at the time of birth or within 12 months thereafter; or be a Singapore citizen at the time of legal adoption or within 12 months thereafter; and
ii.
iii.
be a Singapore citizen at the time of the marriage of his natural parents or within 12 months thereafter; and not have more than 3 elder brothers or sisters in the same household 17
iv.
Deductions & Reliefs
Q27. Can my spouse and I share the Parenthood Tax Rebate (PTR)? A27. You and your spouse can share the Parenthood Tax Rebate (PTR) as agreed between you. The PTR in the husband's account can also be transferred to the wife's account and vice versa. If you wish to transfer the balance of your PTR account to your spouse, you should write to IRAS to authorise the transfer. In the letter, please indicate the following. a) b) c) Your name and NRIC number Your spouse‟s name and NRIC number The amount of PTR balance you want transferred
Alternatively, you can transfer the balance from your PTR account using our eService on Transfer of Parenthood Tax Rebate (PTR), available on myTax Portal.
Q28. Currently, I have unutilised Special Tax Rebate (STR)/Further Tax Rebate (FTR) balance. Will my balance be forfeited now that the STR/FTR is no longer available? A28. a) Any unutilised Special Tax Rebate (STR) balance that can be brought forward to the Year of Assessment 2005 under the STR rules will continue to be available for deduction against the tax payable for the Year of Assessment 2008 or any subsequent Year of Assessment until the rebate has been fully utilised. The time limit of 9 years for claiming STR has been removed. 18
Deductions & Reliefs
b) Any unutilized Further Tax Rebate (FTR) balance will continue to be available for deduction until the balance is fully utilised or up to 9 years following the year of birth of the child.
c) If your 2nd, 3rd or 4th child is given up for adoption before the rebates are fully utilised, the rebates will be forfeited in the Year of Assessment following the year in which the adoption took place.
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