Parenthood is often referred to as life’s greatest adventure, complete with sleepless nights, endless diaper changes, and a newfound appreciation for the wonders of baby talk. But amidst the chaos and cuteness overload, there’s one more reason for Singaporean parents to rejoice: a delightful Parenthood Tax Rebate (PTR) that promises to make the journey of parenthood even more joyful.
Get ready to embrace the world of parenthood with open arms and wallets because this parenthood tax rebate will make your bank balance as happy as your little one’s contagious giggles.
Brace yourselves, fellow parents, for a tale filled with joy, laughter, and a clever twist of tax incentives that will have you exclaiming, “Who said raising kids can’t be financially rewarding?”
Qualifying for the Parenthood Tax Rebate (PTR)
Parenthood Tax Rebate (PTR) is provided to tax residents to encourage them to have more children by easing up their expenses.
In order to qualify, you must be a Singapore tax resident who is married, divorced, or widowed in the relevant year.
This PTR Eligibility Tool (XLSM, 52KB) can help you check your eligibility for PTR.
For children born or adopted on or after 1 Jan 2008
|
|---|
| S/N |
Conditions for qualifying child |
Relevant year of claim |
| 1 |
- Born to you and your spouse/ex-spouse on or after 1 Jan 2008, and you are married to your spouse/ex-spouse at the time; and
- Is a Singapore Citizen* at the time of birth or within 12 months thereafter
|
Year of birth |
| 2 |
- Born to you and your spouse/ex-spouse on or after 1 Jan 2008 before you are married to your spouse/ex-spouse, and your marriage is registered before your child reaches 6 years old; and
- Is a Singapore Citizen* at the time of your marriage or within 12 months thereafter
|
Year of marriage |
| 3 |
- Legally adopted on or after 1 Jan 2008 when you are married but before your child reaches 6 years old; and
- Is a Singapore Citizen* at the time of legal adoption or within 12 months thereafter
|
Year of adoption |
* You may qualify for PTR for children born overseas if you meet the qualifying conditions, including the stipulated timeline for the child to obtain Singapore Citizenship. For information on applying for Singapore Citizenship, please visit the Immigration and Checkpoints Authority (ICA) website.
For children born or adopted before 1 Jan 2008
Parenthood Tax Rebate (PTR) is not available in respect of your 1st child born or adopted before 1 Jan 2008. Your 2nd, 3rd or 4th child must meet the following conditions to qualify for PTR.
|
|---|
| S/N |
Conditions for qualifying child |
Relevant year of claim |
| 1 |
- Born to you and your spouse/ex-spouse on or after 1 Jan 2004, and you are married to your spouse/ex-spouse at the time; and
- Is a Singapore Citizen* at the time of birth or within 12 months thereafter
|
Year of birth |
| 2 |
- Born to you and your spouse/ex-spouse on or after 1 Jan 2004 before you are married to your spouse/ex-spouse, and your marriage is registered before your child reaches 6 years old; and
- Is a Singapore Citizen* at the time of your marriage or within 12 months thereafter
|
Year of marriage |
| 3 |
- Legally adopted on or after 1 Jan 2004 but before 1 Jan 2006; or
- Legally adopted on or after 1 Jan 2006 but before the child reaches 6 years old; and
- Is a Singapore Citizen* at the time of legal adoption or within 12 months thereafter
|
Year of adoption |
* You may qualify for PTR for children born overseas if you meet the qualifying conditions, including the stipulated timeline for the child to obtain Singapore Citizenship. For information on applying for Singapore Citizenship, please visit the ICA website.
Parenthood Tax Rebate (PTR): A Reward for Growing Families!
Source: iStock
Claiming Your Parenthood Tax Rebate
The Parenthood Tax Rebate (PTR) is a one-time tax abatement that can be claimed in the year following your child’s birth.
Each qualifying child entitles you to a rebate of up to $20,000, making it a fantastic incentive to expand your family.
Whether you’re married, divorced, or widowed, you can take advantage of this rebate.
If both you and your spouse are tax-paying residents, you can even share the PTR based on apportionment.
Qualifying for the Parenthood Tax Rebate
To qualify for the Parenthood Tax Rebate, you must be a Singapore tax resident who is married, divorced, or widowed in the relevant year.
Additionally, your child must be a Singapore citizen at the time of birth or within 12 months thereafter.
The eligibility criteria may vary for adopted children or if parents marry after a child’s birth but register them before turning six.
How Much Can You Save?
Enjoying Substantial Savings
The Parenthood Tax Rebate allows parents to save significantly on their taxes.
For your first child, you’ll receive a $5,000 offset. The rebate increases to $10,000 for your second child and an impressive $20,000 for each subsequent child.
Any unused balance can be carried forward to offset your future tax liabilities, providing ongoing financial benefits for growing families.
There are some clauses to if you are legible for the tax rebate, but in general, you can claim the following:
|
|---|
| Child order |
PTR
(For child born in 2004 to 2007)
|
PTR
(For child born from 2008 onwards)
|
| 1st |
$0 |
$5,000 |
| 2nd |
$10,000 |
$10,000 |
| 3rd |
$20,000 |
$20,000 |
| 4th |
$20,000 |
$20,000 |
| 5th and subsequent child |
$0 |
$20,000 per child |
Special Scenarios and Treatment
The PTR treatment varies in certain scenarios:
-
Children are given up for adoption. If a child is given up for adoption in the year of birth, parents are not entitled to PTR for that child. However, if adoption occurs after the birth year, any remaining PTR balance is forfeited.
-
Dissolution of marriage under a court order. In the event of a court-ordered dissolution of marriage, both ex-spouses can continue utilising any remaining PTR balance to offset future tax liabilities.
-
Death of a spouse. If one spouse passes away, the surviving spouse can continue using any remaining PTR balance to offset their future tax liabilities.
How to Claim Your PTR?
You can find out more about this at IRAS.GOV
Embrace parenthood and reap the financial benefits!
Parenthood is a joyous journey, and Singapore’s Parenthood Tax Rebate adds an extra sprinkle of happiness.
As you navigate the realm of parenting, don’t forget to claim the financial benefits available to you.
PTR serves as a delightful incentive, rewarding parents for raising their children. Embrace the financial support, celebrate the joy of parenthood, and relish the remarkable journey of raising a family in Singapore!
ALSO READ
5 Best Ways To Reduce Your Income Tax in Singapore (2022)
950,000 Singaporean HDB Households To Receive $135 Million In S&CC Rebates Starting From April
54 Reasons to celebrate being a Singaporean parent!
