In the 2024 Budget statement, Deputy Prime Minister Lawrence Wong announced a personal income tax rebate of 50% for the assessment year 2024, with a cap set at S$200. This decision was made in light of rising concerns about the cost of living.
The rebate is expected to cost the government S$350 million.
In addition to the income tax rebate, the government will also be raising the threshold for dependant-related tax reliefs. Currently, taxpayers can claim a range of dependant-related tax reliefs if their dependants earn an annual income of S$4,000 or less. However, with effect from the assessment year 2025, this threshold will be increased to S$8,000.
The annual income limit for dependants or caregivers will also be raised from S$4,000 to S$8,000. This change will apply to those who are caring for family members such as their spouse, parent, or qualifying child. The relief will also extend to working mothers who are caring for their children.
Furthermore, taxpayers who have contributed to the Central Provident Fund (CPF) accounts of their spouses or siblings will also be eligible for this relief. The threshold for some of these categories was last raised from S$2,000 to S$4,000 in 2010.
These measures demonstrate the government’s commitment to providing support to taxpayers, particularly those who have dependants or caregiving responsibilities. By increasing the thresholds for dependant-related tax reliefs, the government aims to ease the financial burden on these individuals and help them manage the cost of living.