It was announced in Budget 2017 on 20 February 2017 that resident individual taxpayers will be granted a one-off personal income tax rebate of 20% (subject to a cap of $500) in respect of YA 2017 (i.e. for income earned in 2016).
To provide relief to individuals who pay income tax.
How is the Rebate Calculated?
The amount of income tax rebate is calculated based on the following:
- the amount of tax payable after double taxation relief (DTR) and other credits; and
- the amount of tax payable before offsetting the Parenthood Tax Rebate.
Taxpayers need not apply for this rebate. IRAS will compute and grant the rebate automatically to all tax residents.