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Budget 2016: Cap on personal income tax relief at S$80,000 a year
The Ministry of Finance will introduce a cap on the total amount of personal income tax relief an individual can claim, at S$80,000 per year of assessment, said Heng Swee Keat, Minister for Finance. This will affect the one per cent of tax-resident individuals. To take effect from year of assessment 2018, this tax-relief cap is expected to raise S$100 million a year.
"This cap will make our personal income tax system more progressive. Nevertheless, our personal income tax burden remains low," said Mr Heng.
- For more Budget stories, go to bt.sg/budget_16. For live analysis by commentators on our blog go to bt.sg/budget2016blog.