Parent Relief and Handicapped Parent Relief are tax reliefs granted to individuals who are supporting their parents, grandparents, parents-in-law, or grandparents-in-law in Singapore. These reliefs were introduced to encourage Singapore’s taxpayers to be more willing to give financial support to aging parents or grandparents.
The following criteria must be fulfilled in order for an individual to claim Parent Relief or Handicapped Parent Relief: the dependant must have been living in Singapore during the previous year of assessment (YA), the dependant must have been living in the individual’s household, the dependant must have been either a minimum of 55 years old or either physically or mentally disabled during the previous YA, and the dependant did not have an annual income exceeding S$4,000 during the previous YA.
Singaporean tax laws define the phrase “living in Singapore” as being applicable to one who permanently lives in Singapore except for short absences. Foreign dependants are usually considered to live in Singapore if they stay there for at least eight months of a YA.
If the dependant had been living in the individual’s household during the previous YA, the individual must have spent a minimum of S$2,000 to care for the dependant in order to be eligible for any of the relevant tax reliefs.
“Annual income” may refer to any of the following: taxable income, including trade, employment, rental, and SRS withdrawals; tax-exempt income, including bank interest, dividends, and pensions; and all foreign-sourced income, regardless of the location of the income’s source or whether the income has been remitted to Singapore.
Parent Relief is worth S$5,500 if the taxpayer does not stay with the dependant and S$9,000 if the taxpayer does. Handicapped Parent Relief is worth S$10,000 if the taxpayer does not stay with the dependant and S$14,000 if the taxpayer does. These figures were introduced for YA 2015; all are increases from the prior amounts of S$4,500, S$7,000, S$8,000, and S$11,000 respectively.