To ease the financial burden on individuals supporting their parents, grandparents, or in-laws, the Inland Revenue Authority of Singapore (IRAS) offers the Parent Relief and Handicapped Parent Relief schemes. These tax reliefs serve as incentives for filial support, allowing eligible taxpayers to enjoy significant reductions in their taxable income each year.
What Is the Parent Relief Scheme?
The Parent Relief Scheme is a tax relief initiative introduced by the Singapore government that provides financial relief to those who support their elderly parents, grandparents, or in-laws. It helps reduce your overall taxable income, which means you could end up paying less in income tax.
The relief is available in two forms:
- Parent Relief – for individuals supporting dependants who are not handicapped.
- Handicapped Parent Relief – for individuals supporting dependants with disabilities.
Who Can Qualify?
To be eligible for the Parent Relief or Handicapped Parent Relief, you must meet the following conditions:
1. Dependants Must Be a Parent, Grandparent, or In-law
- The dependant must be your or your spouse’s parent, grandparent, father-in-law, or mother-in-law.
2. Residential Status
- The dependant must have lived in Singapore during the relevant year.
3. Living Arrangements or Support
- You must have supported the dependant in the preceding year through:
- Living with them in the same household, or
- Providing at least $2,000 in cash for their living expenses.
4. Age and Income Requirements
- For Parent Relief (non-handicapped), the dependant must:
- Be at least 55 years old, and
- Not have earned more than $4,000 in annual income (excluding CPF payouts and government support like Silver Support or Pioneer Generation payouts).
- For Handicapped Parent Relief, there is no age or income limit, but the dependant must be certified as handicapped by a medical practitioner.
How Much Relief Can You Claim?
The amount of tax relief depends on whether you stay with the dependant and whether they are handicapped:
| Type of Relief | Staying with Dependant | Not Staying with Dependant |
|---|---|---|
| Parent Relief | $9,000 | $5,500 |
| Handicapped Parent Relief | $14,000 | $10,000 |
These amounts are per dependant, and can only be claimed by one child unless the relief is shared.
Shared Claims Between Siblings
If more than one sibling supports the same parent or grandparent, the relief can be shared among them. Each sibling must agree on the proportion to be claimed, and the total shared amount must not exceed the maximum relief for that category.
This shared arrangement needs to be declared in each individual’s tax filing.
How to Apply
To claim the Parent Relief or Handicapped Parent Relief:
- Log in to myTax Portal on the IRAS website during tax filing season.
- Under “Deductions, Reliefs and Parenthood Tax Rebate,” select the appropriate relief.
- Provide the necessary details about your dependant, including:
- Full name
- NRIC/FIN
- Relationship
- Living arrangement
- Amount of support (for non-cohabiting claims)
- For Handicapped Parent Relief, submit a valid medical certification (if not already on file with IRAS).
Important Notes
- The income cap of $4,000 for dependants excludes government cash payouts and CPF retirement income.
- You cannot claim both Parent Relief and the Grandparent Caregiver Relief for the same individual.
- You must retain proof of support (e.g., bank transfer records, receipts) in case IRAS requests verification.
Final Thoughts
The Singapore Parent Relief Scheme is more than just a tax-saving measure—it reflects the government’s support for family caregiving and intergenerational responsibility. If you’re financially supporting your elderly parents or in-laws, this relief can significantly ease your annual tax burden. Make sure to review your eligibility and submit accurate claims during your tax filing to benefit fully from the scheme.