The tax system in Singapore is quite straightforward. Unlike many other countries, you don’t need to pay a trained accountant to identify all the ways to optimise your income. However, this can also be a flaw. Many Singaporeans don’t pay attention to the Singapore tax deductions and rebates available to them.
Here are some commonly missed ones:
1. Parenthood Tax Rebate
The Parenthood Tax Rebate (PTR) is one of the many initiatives used to encourage Singaporeans to have more children. For any child born or adopted on or after 1 January 2008, the rebate is $5,000 for the first child, $10,000 for the second child, and $20,000 for every subsequent child.
The rebate can be shared between you and your spouse, in any way you choose. You can qualify for PTR if you are a Singapore tax resident and married, windowed, or divorced in the year the child is born …