It is going to be that time of the year. Income tax filing time.
If your company has auto filled for you and if you do not have any new reliefs to claim, you might not even have to do any filing. In fact, IRAS might have sent you a letter to inform you that you are exempted from filing (No-Filing Service) if your income source and reliefs remain the same as last year. However, if there are any mistakes when you receive your Notice of Assessment (NOA), you have to inform IRAS.
I never really looked at the tax reliefs in detail, hence decided to list them out as a guide this year.
They are actually available on IRAS website.
I am going to list the the general reliefs available to all taxpayers who are Singapore tax residents, in employment, and meet the criteria:
- Course fees relief
- note that the course, seminar or conference should lead to a recognised academic and professional qualification; the course, seminar or conference provider is a Singapore registered entity with the Accounting & Corporate Regulatory Authority (ACRA). Go to the ACRA website to check if your course provider is a registered entity.
- CPF cash top up relief
- I have been making cash top up to my Special Account (SA) for the past few years. You could also do that for your parents/parents-in-law, grandparents/grandparents-in-law, spouse, and siblings. However, to claim tax relief for cash top-ups for your spouse or siblings, the spouse or siblings must not have an annual income exceeding $4,000 in the year preceding the year of top-up. This income threshold does not apply to parents, grandparents, handicapped* spouse or handicapped* siblings.
- CPF relief
- CPF Relief is capped by the amount of compulsory employee CPF contributions made on Ordinary Wages and Additional Wages under the CPF Act.
- Earned income relief
- Age below 55: $1000;
- Age 55-59: $3000;
- Age 60 and above: $8000.
- Life insurance relief
- Not eligible for Life Insurance Relief if your total compulsory employee CPF contribution in 2015 is $5,000 or more.
- Parent relief
- Includes support for parents, parents-in-law, grandparents, and grandparents-in-law. The dependent does not have an annual income exceeding $4,000 in previous year. This relief could be shared with other claimant.
- If taxpayer stays with dependent: $9000
- If taxpayer does not stay with dependent: $5500; taxpayer must have incurred more than $2000 in support.
- Qualifying child relief / Handicapped child relief
- regardless of whether it is claimed by the father or mother, this will be allowed first. WMCR will be limited to the remaining balance (see below).
- Working mother’s child relief (WMCR)
- 1st child: 15% of mother’s earned income
- 2nd child: 20% of mother’s earned income
- 3rd and beyond: 25% of mother’s earned income
- WMCR percentages are added together if you claim for more than one child and the total is capped at 100% of the mother’s earned income.
- NSman relief:
- for self, wife and parents
Note that there will be a personal income tax relief cap of $80,000, which will apply from the Year of Assessment (YA) 2018. This cap applies to the total amount of all tax reliefs claimed, including any relief on cash top-ups made on or after 1 Jan 2017.
There are also some rebates that might be relevant to you:
Disclaimer: the above is a list I have compiled for my own reference only, not to be taken as professional advice. Do check with IRAS or tax consultants if you have any queries now… or you might get stressed up when the deadline looms near, especially if you are self employed and would have more details to take care of.
For more articles like this, go to blog Financial Freedom Gal.
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