In the Singapore Budget 2025, the government introduced a one-time Personal Income Tax (PIT) rebate as part of the SG60 package, celebrating the nation’s 60th year of independence.
This rebate aims to provide financial relief to tax-resident individuals by reducing their tax liabilities for the Year of Assessment (YA) 2025, which pertains to income earned in 2024.
Key Details at a Glance
| Feature | Details |
|---|---|
| Rebate Percentage | 60% of tax payable |
| Maximum Rebate | SGD $200 per taxpayer |
| Applicable Year | YA 2025 (for income earned in 2024) |
| Eligibility | All tax-resident individuals with taxable income in 2024 |
| Application Needed | No; automatically applied by IRAS |
| Rebate Calculation | Based on tax payable after other credits, before Parenthood Tax Rebate |
Eligibility Criteria
To qualify for the $200 income tax rebate, individuals must:
- Be a tax resident of Singapore for the year 2024. This includes:
- Singapore Citizens
- Permanent Residents
- Foreigners who have resided or worked in Singapore for at least 183 days in 2024 .
- Have taxable income for the Year of Assessment 2025. Individuals with zero tax payable will not benefit from the rebate, as it is applied against existing tax liabilities .
How the Rebate is Applied
The Inland Revenue Authority of Singapore (IRAS) will automatically compute and apply the rebate during the tax assessment process. Taxpayers do not need to submit any additional applications or forms.
The rebate will be reflected in the Notice of Assessment (NOA) issued by IRAS. Taxpayers are advised to review their NOA to ensure the rebate has been correctly applied.
Calculation Examples
| Tax Payable | 60% of Tax Payable | Rebate Applied | Final Tax Payable |
|---|---|---|---|
| $500 | $300 | $200 (capped) | $300 |
| $150 | $90 | $90 | $60 |
| $0 | $0 | $0 | $0 |
Additional Tips to Maximize Tax Benefits
While the $200 rebate provides immediate relief, taxpayers can further reduce their tax liabilities by:
- Claiming all eligible tax reliefs, such as:
- Earned Income Relief
- Course Fees Relief
- CPF Cash Top-up Relief
- NSman Relief
- Parent/Handicapped Parent Relief
- Working Mother’s Child Relief
- Making voluntary CPF contributions, which not only bolster retirement savings but also offer tax relief.
- Filing taxes on time, ensuring all reliefs and rebates are accurately applied .
The $200 income tax rebate introduced in Singapore’s Budget 2025 serves as a timely financial relief for tax-resident individuals, especially those in the middle-income bracket.
By understanding the eligibility criteria and ensuring timely and accurate tax filings, taxpayers can fully benefit from this initiative.
Additionally, exploring other available tax reliefs can further optimize one’s tax position.
FAQs
Do I need to apply for the $200 income tax rebate?
No. The rebate is automatically computed and applied by IRAS during the tax assessment for YA 2025.
What if my tax payable is less than $200?
You will receive a rebate equivalent to 60% of your tax payable. If your tax payable is $150, for instance, your rebate will be $90.
Can I carry forward any unused portion of the rebate?
No. The rebate applies only to the tax payable for YA 2025 and cannot be carried forward or refunded .