IRAS One-Off Personal Income Tax Rebate for Year of Assessment 2025
In line with Singapore’s SG60 initiative, which aims to share the nation’s success and progress with its citizens, a one-off Personal Income Tax Rebate will be granted to all tax resident individuals for the Year of Assessment (YA) 2025. This rebate applies to income earned during the calendar year 2024, and it is part of the broader package of measures introduced in the Singapore Budget 2025 to provide financial support to residents.
Key Details of the Personal Income Tax Rebate:
- Rebate for YA 2025: The rebate for YA 2025 will be 60% of the tax payable, up to a maximum of $200 per taxpayer. This is an enhancement from previous years, providing significant relief for tax residents.
- Rebates for Previous Years: In past years, the rebate was set at 50% of tax payable, with a cap of $200. This applied to YA 2024 and YA 2019 as well.
- How the Rebate is Calculated: The rebate is applied based on the amount of tax payable after taking into account any double taxation relief and other available credits. The calculation does not include the Parenthood Tax Rebate in determining the taxable amount for this particular rebate. In simple terms, the rebate will reduce the overall tax you owe for the year, providing you with some financial relief.
Eligibility for the Rebate:
- The Personal Income Tax Rebate is available to all tax resident individuals in Singapore who have taxable income for the relevant year of assessment. This includes residents who earn income from various sources, including employment, business, investments, and others, as long as they are eligible for tax residency in Singapore.
No Action Needed – Automatic Rebate Processing
- Once the Inland Revenue Authority of Singapore (IRAS) processes your tax return, the rebate will be automatically calculated and applied to reduce your tax payable for the year. This means you do not need to take any extra steps or worry about missing out on this benefit. It will be reflected directly in your Notice of Assessment once it is issued by IRAS.
- The rebate will be applied to the tax you owe after accounting for any other relevant deductions or credits, making this a straightforward and effective way to reduce your tax liability.
