Singapore Budget 2010 - Personal Income Tax
Spouse Relief
With effect from Year of Assessment 2010, Wife Relief will be replaced by Spouse Relief. With this change, male and female resident taxpayers will be able to claim Spouse Relief of $2,000 if the wife or husband does not have annual income exceeding $4,000.
Handicapped Spouse Relief
The $2,000 income threshold for the Handicapped Spouse Relief will be removed with effect from Year of Assessment 2010.
Parent Relief
With effect from Year of Assessment 2010, the Parent Relief will be increased to $7,000 if the dependant lives with the taxpayer and $4,500 if the dependant does not live with the taxpayer. The income of the dependant earned in the preceding year must not exceed $4,000.
Handicapped Parent Relief
With effect from Year of Assessment 2010, the Handicapped Parent Relief will be increased to $11,000 if the handicapped dependant lives with the taxpayer and $8,000 if the handicapped dependant does not live with the taxpayer. The $2,000 income threshold for the Handicapped Parent Relief has been removed with effect from Year of Assessment 2010.
Qualifying Child Relief (QCR)
With effect from Year of Assessment 2010, taxpayers can claim the QCR if the dependant’s income earned in the preceding year did not exceed $4,000. Working mothers who satisfy the conditions for QCR/HCR may also claim for the Working Mother’s Child Relief (WMCR).
Handicapped Child Relief (HCR) & Handicapped Brother/Sister Relief
The $2,000 income threshold for HCR and Handicapped Brother/Sister Relief has been removed with effect from Year of Assessment 2010.
CPF Cash Top-Up Relief
The current $2,000 income threshold for the CPF Cash Top-Up Relief in respect of spouse and sibling will be raised from $2,000 to $4,000 with effect from Year of Assessment 2011.
There will be no income threshold condition for CPF Cash Top-Up Relief in respect of handicapped spouse and handicapped sibling with effect from Year of Assessment 2011.
The Ministry of Manpower (MOM)/CPF Board will release further details in March 2010.
Course Fees Relief
The Course Fees Relief will be increased from $3,500 to $5,500 with effect from Year of Assessment 2011.
Enhancement of tax deduction on donations
Tax deduction of 250% will be extended for another year for donations made during the period from 1 January 2010 to 31 December 2010. All existing rules to qualify for the enhanced tax deduction will remain the same.
Reduced withholding tax rate for non-resident public entertainers
Withholding tax rate for non-resident public entertainers will be reduced from 15% to 10% if the income for the services rendered is due and payable to the non-resident public entertainer during the period from 22 February 2010 to 31 March 2015.
Tax Deduction for Angel Investors
Under this incentive, an approved angel investor needs to invest a minimum of $100,000 into a start-up in a Year of Assessment, in order for him to enjoy tax deduction at 50% of his investment at the end of his second year of holding of the investment. The deduction to an approved angel is capped at $500,000 of investment into qualifying start-ups per Year of Assessment. The incentive is valid from 1 March 2010 to 31 March 2015 (both dates inclusive) and applies to qualifying investments in qualifying start-ups made during this period.
SPRING Singapore which administers this incentive will release the details of the scheme by June 2010.
