OhGuide: TAX Benefits & Incentives for Singapore Citizens & PRs

You need to pay income tax on all income you have earned or received in Singapore. However, overseas income which was received in Singapore (including those paid into a Singapore bank account) on or after 1 Jan 2004 is not taxable. For interest received from fixed deposits, it is taxable, unless they are specifically exempted under the Income Tax Act. The exemption is that interest received from deposits with approved banks or licensed finance companies in Singapore on or after 1 Jan 2005 is not taxable.

read more intro>>>

Income tax is assessed based on a preceding year basis. For example, for Year of Assessment 2010, you will be taxed on the income earned in year 2009. Recently there is a discussion in community whether the tax assessment should be done for the current year instead of preceding year and whether it should be done on monthly basis. According to them, this will provide clearer and fairer assessment as you pay what you earn currently. However, till date, old rule still applies: the assessment is still on yearly basis and for the preceding year.

Let's take a look on the following table to see what tax benefits and incentives that you are entitled to, either as Citizen or PR.

Privileges & Obligations	Singapore Citizen	Singapore PR
Tax Matters
Tax incentives for parenthood specifically: Parenthood Tax Rebate Working Mother's Child Relief Grandparent Caregiver Relief Qualifying Child Relief Handicapped Child Relief Foreign Maid Levy Relief	Eligible	Not eligible
Tax deferral for contributions to Supplementary Retirement Scheme	Eligible	Eligible
Tax relief for Central Provident Fund (CPF) contributions	Eligible	Eligible
All other personal reliefs	Eligible	Eligible except: Relief for Wife/Widow of National Service men (Wife must be Singapore Citizen) Relief for parent of National Service men (Parent must be Singapore Citizen)