It is the Government’s policy to keep our Personal Income Tax regime competitive and progressive. This encourages employment, innovation and enterprise, while ensuring that higher-income earners pay higher taxes.
What are the Personal Income Tax rates?
The amount of Personal Income Tax payable depends on the amount of income earned in the year and the amount of tax deduction, tax reliefs and tax rebates applicable in each individual case.
Please refer to IRAS’ website for the prevailing Personal Income Tax rate structure and other details on Personal Income Tax.
What Personal Income Tax reliefs and rebates are available?
The various Personal Income Tax reliefs are in line with our social objectives, such as taking care of elderly parents and saving for retirement. The tax reliefs can reduce one’s taxable income. There is also the Parenthood Tax Rebate, which is given to encourage the birth of Singaporean children after marriage.
Please refer to IRAS’ website for more details.
What is the Personal Income Tax relief cap and how does it work?
The Personal Income Tax relief cap serves to keep our tax system progressive. It puts an overall cap on the amount of tax reliefs that an individual can claim at $80,000 per Year of Assessment.
Does the Personal Income Tax relief cap apply to donations?
The tax relief cap does not apply to tax deduction for donations, as this is not a Personal Income Tax relief.
Personal Income Tax Reliefs and Rebates
The Government provides various tax reliefs and rebates to promote certain social objectives, such as encouraging marriage and family formation, recognition for taxpayers who support their dependants, and saving for retirement.
Please refer to IRAS’ website for more details.
Personal Income Tax Relief Cap
Over the years, the Government has introduced and enhanced reliefs significantly. Each relief serves an objective. But, taken together, the reliefs can unduly reduce the taxable income.
The $80,000 cap on the total amount of personal income tax reliefs was thus introduced to enhance the progressivity of Singapore’s tax system in Budget 2016.
Nonetheless, even with the cap, our tax burden remains competitive.
The tax relief cap does not apply to the tax deduction for donation. This deduction is not a personal income tax relief.
Tax Deduction for Donations
Table 1 below further elaborates on the types of donations that will be granted the 250% tax deduction.
Table 1: Qualifying Donations for 250% Tax Deductions
| Donation Scheme | Eligible Recipient | Eligible Donor |
| Cash donations | Approved Institutions of a Public Character (IPCs) and the Singapore Government | All donors |
| Gift of shares listed on the Singapore Exchange (SGX) or of units in unit trusts traded in Singapore | Approved IPCs | Individual donors only |
| Gifts of artefacts | Approved museums (by the National Heritage Board) | All donors |
| Donation of public sculptures | The National Heritage Board or approved recipients | All donors |
| Gifts of parcels of land or buildings | Approved IPCs | All donors |
In addition, as of 1 Jan 2005, the following donations with naming opportunities will be granted the 250% tax deduction::
Donations to name IPCs, IPC facilities, events or programmes,
Donations to name facilities of approved beneficiaries (including artefacts and public sculptures) under any of the other approved donation programmes,
Donations under any of the approved donation programme where the IPC or approved beneficiary acknowledges the donation by including the donor's name or logo in the IPC's collaterals (e.g. banners, publications, advertisements).
The 250% tax deduction will not be given in cases where the donor is advertising at the IPC facility, event or programme. Donors displaying their banners, products, or other collaterals at the IPC facility, event, or programme to which it
has donated is regarded as advertising or marketing expenses and not a donation.
Other forms of in-kind donations that do not fall under Table 1 or are not eligible naming opportunities as indicated above will not be awarded the 250%
tax deduction.
Previous enhancement to tax deductions on donations
In conjunction with SG50, the Government increased the tax deduction from 250% to 300%, for qualifying donations made from 1 January 2015 to 31 December 2015 only. Please note that tax deduction for donations made from 1 January 2016 to 31 December 2026 will be at 250%. All existing criteria to qualify for tax deduction remain unchanged.
Tax deductions for overseas donations
To encourage greater philanthropic giving among Single Family Offices and the growth of philanthropic capabilities in Singapore, the Minister for Finance introduced the Philanthropy Tax Incentive Scheme for Family Offices (PTIS) at Budget 2023. Qualifying donors approved under the PTIS can claim 100% tax deduction for overseas donations made through qualifying local intermediaries for a period of five years starting from an approved incentive commencement date within the period 1 January 2024 to 31 December 2028. The tax deduction is capped at 40% of the approved qualifying donor’s statutory income. For more information on the PTIS, please refer to MAS’ website.To encourage Singaporeans to support those in need overseas, the Minister for Finance announced at Budget 2024 the pilot of the Overseas Humanitarian Assistance Tax Deduction Scheme (OHAS). Under the OHAS, corporate and individual donors can claim 100% tax deduction for qualifying cash donations made towards approved overseas emergency humanitarian assistance causes made through designated charities with a valid Fund-Raising For Foreign Charitable Purposes permit from the Commissioner of Charities during the period 1 January 2025 to 31 December 2028. The tax deduction is capped at 40% of the donor’s statutory income, with the cap shared with the PTIS.