Amount and Percentage of Qualifying Child Relief and Parenthood Tax Rebate Not Tapped
Ministry of FinanceSpeakers
Summary
This question concerns the unutilised amount of Qualifying Child Relief and Parenthood Tax Rebate for the Year of Assessment 2024 and the availability of tax calculation tools. Mr Saktiandi Supaat inquired about the potential sub-optimal allocation of these reliefs between parents and requested a provisional assessment tool from the Inland Revenue Authority of Singapore (IRAS). Minister for Transport and Second Minister for Finance Chee Hong Tat clarified that parents decide the apportionment of reliefs and that the Parenthood Tax Rebate can be carried forward indefinitely. He emphasized that IRAS already offers tools like the Tax Reliefs Checker and Individual Income Tax Calculator to assist taxpayers in managing their tax obligations and estimating chargeable income. The Minister concluded that IRAS remains committed to reviewing and enhancing its digital services to improve the user experience and provide greater support for all taxpayers.
Transcript
99 Mr Saktiandi Supaat asked the Prime Minister and Minister for Finance (a) what is the amount and percentage of the total available (i) Qualifying Child Relief and (ii) Parenthood Tax Rebate, that effectively went unutilised in the Year of Assessment for 2024, because parents had sub-optimally left the relief or rebate to be allocated equally between them; and (b) whether IRAS will consider providing a simple tool for parents to provisionally calculate their taxable income and available reliefs before official assessment.
Mr Chee Hong Tat: The Qualifying Child Relief or Child Relief (Disability) and the Parenthood Tax Rebate can be claimed by either or both parents on the same child. When taxpayers first submit a claim for the relief or rebate, they will inform the Inland Revenue Authority of Singapore (IRAS) how much of the relief or rebate is to be claimed by each parent. Taxpayers can adjust the apportionment for subsequent years of assessment.
It is up to parents to decide how to share the relief or rebate, or both, in a manner that is aligned with their family circumstances. The Government does not interfere with the parents' decisions as long as qualifying conditions are met.
Unlike tax reliefs which have to be claimed on a yearly basis, there is no expiration date for utilising the Parenthood Tax Rebate. Parents can carry forward any unutilised Parenthood Tax Rebate balance indefinitely for use in future years of assessment.
There are several tools on the IRAS website to assist individuals in understanding and managing their tax obligations. The "Tax Reliefs Checker" helps individuals identify the tax reliefs they may be eligible for; the "Individual Income Tax Calculator" allows individuals to estimate their chargeable income and tax payable based on their income and relief claims; and myTax Portal offers a personalised view of an individual's tax matters, including filed returns and assessments.
IRAS will continue to review its digital services to enhance user experience and provide more support to all taxpayers.