New TAX incentive to encourage birth rate for YA2009

Tax incentive for parents (PTR)

Parenthood tax rebate (PTR) is a lump sum rebate given to married Singapore Tax Residents to encourage them to have more Singaporean BB.

Therefore, it is based on the baby nationality and NOT the parents. For example, if the mother is a Singapore Tax Resident, she is s Singapore PR, and she baby is a Singaporean BB, she will be entitled for this rebate.

This incentive is claimable by either parent or shared between both parents, unutilised PTR will be carried forward to offset future income tax payable, until it is fully utilized.

Previously this incentive only applicable for the 2nd, 3rd & 4th this rebate is at 10K for 2nd child and 20K for 3rd & 4th Child, but wef YA 2009, this new incentive extended to the 1st & 5th Baby. The rebate will be at 5K for 1st child, 10K for 2nd child, 20K for 3rd, 4th & 5th Child.

Qualifying/handicapped child relief (QCR/ HCR)
QCR/ HCR is given to married Singapore tax residents on a per child basis, each Child can only qualify for either QCR or HCR. This incentive is claimable by either parent or shared between both parents.

Currently the QCR and HCR is at S$2,000/-per child and S$3,500/- per child respectively. Wef YA 2009, this will be changed to S$4,000/-per child and S$4,500/- for QCR and HCR respectively.

This incentive is a relief and NOT a rebate, therefore, if is unutilised, it will be forfeited, unlike the PTR where you will able to carry forward to offset your future income tax payable.

Working mother's child relief (WMCR)
As name spelled it is only claimable for WORKING MOTHER.

1st child - YA2008 & before 5% change to 15% of mother’s earned income
2nd Child - YA2008 & before 15% change to 20% of mother’s earned income
3rd Child - YA2008 & before 20% change to 25% of mother’s earned income
4th Child - YA2008 & before 25% change to 25% of mother’s earned income
5th Child - YA2008 & before 0% change to 25% of mother’s earned income

Max claim QCR/ HCR/ WMCR = 25K per child wef YA2009 max claim to 50K per child

Same as QCR/ HCR, unutilised portion will be forfeited.

Since I had my first bb in 2007, I do not entitle the PTR, however, I am qualified for QCR & WMCR. So still a tax savings to me :D

Further details may refer to http://www.iras.gov.sg/

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