Total personal income tax reliefs to be capped at S$80,000

PEOPLE claiming personal income tax reliefs will soon be limited in the quantum they can get.

The government will introduce a cap of S$80,000 on the total amount of personal income tax relief that an individual can claim in any year of assessment (YA). The cap will take effect from YA 2018.

Explaining this change, Finance Minister Heng Swee Keat noted in his Budget speech on Thursday that there are 15 personal income tax reliefs available. "We have enhanced many of these over the years. Each tax relief serves a worthy objective, such as to supplement retirement savings, encourage mothers to work after having children, or take up a course. However, taken together, the tax reliefs may unduly reduce total taxable incomes for a small proportion of individuals."