SINGAPORE — Given concerns about the cost of living in Singapore, Singapore will offer a 50 per cent personal income tax rebate for the 2024 tax year. The cap will be S$200, Deputy Prime Minister Lawrence Wong said in his 2024 Budget speech. in Parliament on Friday (February 16).
The income threshold for taxpayers claiming dependent-related relief will also increase from S$4,000 to S$8,000 from tax year 2025. This move will allow more Singaporeans to enjoy tax relief if they are supporting their families.
The relief also applies to working mothers caring for children and taxpayers who have added money to their spouse or sibling’s CPF account.
“Our ability to invest in our economy, society and resilience must be rooted in a strong financial position. We must use our resources wisely and ensure that we are able to feed our children and grandchildren. We are paying close attention to this,” Democratic Party of Japan Prime Minister Wong said.
“This is why I made significant changes to revenue in the past two budgets. These moves will help ensure that our overall fiscal system remains fair and progressive while ensuring We were able to strengthen our financial foundation for the next 10 years.”
Changes in property tax rates and ABSD concessions
DPM Wong also announced in his budget speech that all annual value (AV) bands of owner-occupied property tax rates will be increased from 2025 on the back of a significant increase in rents. This maintains the intent of the property tax changes and ensures that people living in higher value properties continue to pay their fair share of taxes.
The Inland Revenue Authority of Singapore (IRAS) plans to offer a 24-month interest-free installment plan to retirees living in luxury homes and facing cash flow problems when paying property tax.
Meanwhile, the Additional Buyer’s Stamp Duty (ABSD) benefit for Singaporean married couples will also be extended to single Singaporeans aged 55 and above. This is to better support older people who want to right-size, and if you sell your first property within 6 months of purchasing a lower-priced alternative private property, you will be paid for the replacement private property. You will now be able to claim a refund for your ABSD.
DPM Wong said it will reduce ABSD’s clawback rate if developers sell at least 90 per cent of each development within a given sales schedule. This ensures that housing supply continues to be released quickly and continuously, and also provides some flexibility for developers.
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