Personal income tax planning before year-end is an important financial exercise for individuals in Singapore. However, many taxpayers only review their tax position during filing season, when most planning opportunities are already closed. A timely year-end review helps ensure income is properly reported, reliefs are fully utilised, and compliance risks are minimised.
As Singapore applies a preceding year basis of assessment, actions taken before 31 December directly affect the personal income tax payable in the upcoming Year of Assessment. Even a short review before year-end can prevent unnecessary overpayment and reduce follow-up issues later.
Singapore’s personal income tax system taxes income earned in the current calendar year in the following year. This applies to employment income, self-employed earnings, director’s fees, rental income, and other taxable sources.
Once the year ends, income figures and qualifying reliefs for that year are effectively fixed. Missed reliefs or late contributions cannot be applied retroactively, making year-end personal income tax planning a critical step rather than a routine administrative task.
While employer reporting and auto-inclusion schemes simplify filing, they do not remove the need for individual review. Relief eligibility, family circumstances, age-based benefits, and contribution limits still require careful attention.
Without proper planning, taxpayers may miss legitimate reliefs or make incorrect claims, which can result in higher tax payable or clarification requests from the Inland Revenue Authority of Singapore. Reviewing your tax position before year-end improves accuracy and provides clearer visibility of your expected tax liability.
Singapore offers a wide range of personal income tax reliefs based on employment status, age, and family situation. Understanding how much can be claimed is essential for effective year-end planning.
Below is a consolidated comparison of the most commonly claimed reliefs and their maximum claimable amounts.
|
Tax Relief |
Who Can Claim |
Maximum Amount Claimable |
Key Notes |
|
Earned Income Relief |
Individuals earning income from employment, trade, or business |
Below 55: S$1,000 55–59: S$6,000 60 & above: S$8,000 |
Capped at taxable earned income if lower |
|
Spouse Relief |
Supporting a spouse with low or no income |
S$2,000 |
Income threshold applies |
|
Spouse Relief (Disability) |
Supporting a disabled spouse |
S$5,500 |
No age requirement |
|
Parent Relief |
Supporting parent or grandparent (incl. in-laws) |
S$9,000 per dependent |
Dependent generally aged 55+ with income ≤ S$8,000 |
|
Parent Relief (Disability) |
Supporting a disabled parent or grandparent |
S$14,000 per dependent |
No age requirement |
|
Grandparent Caregiver Relief |
Working mothers using parent/grandparent for childcare |
S$3,000 per caregiver |
Caregiver must not be paid |
|
Qualifying Child Relief (QCR) |
Supporting a qualifying child |
S$4,000 per child |
Child must meet dependency conditions |
|
Child Relief (Disability) |
Supporting a disabled child |
S$7,500 per child |
Applies regardless of child’s age |
|
Working Mother’s Child Relief (WMCR) |
Working mothers |
15% / 20% / 25% of earned income |
Based on child order, subject to cap |
|
CPF Relief (Employees) |
Employees |
Based on CPF contributions |
Automatically applied |
|
CPF Relief (Self-Employed) |
Self-employed individuals |
Based on Medisave & retirement contributions |
Subject to limits |
|
CPF Cash Top-Up Relief |
CPF cash top-ups |
Up to S$8,000 (shared cap) |
Shared with Life Insurance & SRS |
|
Life Insurance Relief |
Low CPF contributors |
Within S$8,000 shared cap |
Often relevant for self-employed |
|
Course Fees Relief |
Job-related training |
Up to S$5,500 |
Course must be relevant |
|
SRS Relief |
SRS contributors |
Up to annual SRS cap |
Cap varies by age & residency |
|
NSman Relief (Self / Wife / Parent) |
Eligible NSmen & family |
Varies |
Category-based |
|
Foreign Domestic Worker Levy Relief |
Supporting elderly/disabled dependants |
Subject to conditions |
Some cases lapsed from YA 2025 |
|
Sibling Relief (Disability) |
Supporting a disabled sibling |
S$5,500 |
Income & dependency rules apply |
Important: The total amount of personal income tax relief that can be claimed is capped at S$80,000 per Year of Assessment.
Personal income tax planning for self-employed individuals often involves greater complexity. Income may fluctuate, allowable business expenses must be properly identified, and Medisave contributions require careful tracking.
A year-end review helps ensure records are complete, income is estimated accurately, and reliefs are applied correctly, reducing the risk of adjustments or penalties during tax filing.
Even close to year-end, individuals can still take meaningful steps such as reviewing relief eligibility, confirming contribution deadlines, and organising income and expense records. These actions help improve filing accuracy and reduce stress during submission.
While not every planning opportunity may remain available, timely action can still prevent avoidable oversights.
Personal income tax planning requires an understanding of relief conditions, overlapping caps, and individual circumstances. Professional guidance helps ensure reliefs are assessed correctly and filings are prepared accurately.
JWC Accounts & HR provides support for personal income tax planning, relief reviews, and filing preparation, helping individuals meet compliance requirements while managing their tax obligations efficiently.