Last Updated on June 26, 2023 by Parentology
Contents
What exactly is the Parenthood Tax Rebate (PTR)?
If this is your first-time hearing about PTR, it is one of the ways the Singapore government is encouraging couples to have more children by providing them with financial support for bringing them up. The lump sum rebate is given to most Singapore tax residents who may be married, divorced, or widowed, and if you are qualified, you can claim up to $20,000 per child!
In this article, we will tell you the ins and outs of the rebate – from determining the conditions to qualify to the amount you may receive.
How do you qualify for the PTR?
To qualify for PTR, your child must fulfil the conditions mentioned below. This rebate qualifies for both born and adopted children.
In the case of children born or adopted on or after 1st January 2008:
| Conditions for qualifying | Relevant year of claim |
| ● Child is born to you and your spouse/ex-spouse on 1 Jan 2008 or after
● Child is a Singapore Citizen* at the time of birth or within 12 months after that |
Year of birth |
| ● Child is born to you and your spouse/ex-spouse before you get married, and the marriage is registered before the child reaches six years old
● Child is a Singapore Citizen* at the time of marriage or within 12 months after that |
Year of marriage |
| ● Child is legally adopted on or after 1 Jan 2008, and has not reached six years old
● Child is a Singapore Citizen* at the time of adoption or within 12 months after that |
Year of adoption |
Source: IRAS
*Children born overseas may qualify for PTR if they meet the qualifying conditions, including the stipulated timeline for the child to obtain Singapore Citizenship. Visit the Immigration and Checkpoints Authority (ICA) website for information on applying for Singapore Citizenship.
The conditions above differ for children born or adopted before 1st January 2008. If your 1st child is born or adopted before this date, your other children must meet the following conditions to qualify for PTR.
| Conditions for qualifying | Relevant year of claim |
| ● The child is born to you and your spouse/ex-spouse on 1 Jan 2004 or after
● The child is a Singapore Citizen at the time of birth or within 12 months after that |
Year of birth |
| ● The child is born to you and your spouse/ex-spouse on or after 1 Jan 2004 before you get married, and the marriage is registered before the child reaches six years old
● The child is a Singapore Citizen at the time of marriage or within 12 months after that |
Year of marriage |
| ● The child is legally adopted on or after 1 Jan 2004 but before 1 Jan 2006; or, legally adopted on or after 1 Jan 2006 but before the child reaches 6 years old
● The child is a Singapore Citizen at the time of adoption or within 12 months after that |
Year of adoption |
Source: IRAS
PTR treatment for different scenarios
Sometimes determining eligibility may be a little complex due to unique scenarios, do read on to find out the differences.
In the case you have given up your child for adoption
Let’s say your child was given up for adoption in the year of his/her birth. This would mean that you are not entitled to any PTR of the child.
You are also not entitled to any rebate once your child is given up for adoption, and this would mean that the remaining PTR balance is forfeited. For instance, if your child is given up for adoption in 2021, you are no longer entitled to claim any unutilised PTR balance from the Year of Assessment 2022.
In the case your marriage is dissolved under a court order
You and your ex-spouse may continue to use any credit balance remaining in your individual PTR accounts to offset future tax liabilities
In the case one spouse passes away
You may continue using any credit balance remaining in your respective PTR accounts to offset future tax liabilities.
Determining child order
The amount claimable differs for each child and will change based on the order of the child in the family. A general rule for PTR calculations is that a child cannot be considered a member of two households. This means children from a previous marriage are only included in the family unit of one parent. The rights of custody, care and control, and the living arrangements of the child, in order of priority, are taken into consideration. This is because the child’s care, living arrangements, and childhood are being given to the parent.
In the case of any deceased sibling or stillborn child, IRAS will consider them to determine the order of children based on a few factors below.
The order of your child for PTR is based on:
| For a child born to you and your spouse/ex-spouse | Date of birth shown in your child’s birth certificate |
| For a child born to you and your spouse/ex-spouse before you are married to your spouse/ex-spouse | Date of marriage |
| For a stepchild | Date of birth shown in your child’s birth certificate |
| For a legally adopted child | Date of legal adoption as shown in the adoption papers |
Source: IRAS
Rebate Amount
Now, let’s move on to how much rebate you may claim. The rebate can only be claimed on each child once and can be shared by you and your spouse based on the agreed apportionment. In the case where both of you cannot agree on the apportionment, IRAS will split it equally between both of you.
To understand how much rebate you are eligible for, here is a table for a better understanding:
| Child Order | Rebate
(for child born between 2004 & 2007) |
Rebate
(for child born after 2008) |
| First | S$0 | S$5,000 |
| Second | S$10,000 | S$10,000 |
| Third | S$20,000 | S$20,000 |
| Fourth | S$20,000 | S$20,000 |
| Fifth and above | S$0 | S$20,000 per child |
Source: IRAS
Carrying forward and transferring unutilised PTR
The good news is that any unutilised amount will be automatically carried forward to offset future income tax payable. This means any remaining balance is not refundable.
In the case where you wish to transfer unutilised PTR to your spouse, you can do so by an online transfer from your account to your spouse’s account. Viewing your PTR balance and transferring the balance is easily accessible by logging in to IRAS’ myTax Portal.
Once the transfer is made, you will have to email IRAS to adjust your past income tax payable. More information about transferring unutilised PTR can be found here.
If the tables turned and your spouse is now the one that transferred his/her PTR balance to you, you need not make the PTR claim. The PTR that has been transferred to your account will automatically be used to offset your income tax payable when your assessment for the year is finalised.
To facilitate the understanding of how to claim PTR, here is an example:
Mr. and Mrs. Tan’s first child was born in 2021. Mrs. Chen was working and had an earned income of $80,000 for that year.
They decided that Mrs. Tan would claim the full amount of QCR of $4,000.
Mr. and Mrs. Tan are Singapore tax residents for the Year of Assessment 2022 and are also entitled to a PTR of $5,000 for their first child. They have agreed to share the amount of PTR equally (i.e., $2,500 each).
Mrs. Tan’s tax computation for Year of Assessment 2022 is as follows:
| Employment income of Mrs Tan | $80,000 |
| Less: Personal Reliefs
Earned income relief QCR WMCR CPF Relief |
($1,000) ($4,000) ($12,000) [15% X $80,000] ($16,000) |
| Chargeable Income | $47,000 [$80,000 – $33,000] |
Source: IRAS
Computation of Mrs. Chen’s tax payable for Year of Assessment 2022
| Chargeable Income | $47,000 |
| First $40,000 | $550 |
| Next $7,000 @ 7% | $490 |
| Gross Tax Payable | $1,040 |
| Less: PTR | $1,040
[Mr and Mrs Chen are sharing the PTR of $5,000 for their first child born in 2021 (i.e., $2,500 per person). Any unutilised amount of PTR will be carried forward to offset against the income tax payable for subsequent years until the rebate has been fully utilised.] |
| Net Tax Payable | $0 |
Source: IRAS
Claiming PTR by e-Filing and Paper filing
The process varies depending on whether it is your first time claiming the rebate and whether you are planning to file it online or through a physical copy.
E-Filing
| 1st Time |
|
| Subsequent Claim | Any unutilised balance is automatically carried forward to offset your future tax payable. |
Source: IRAS
Paper Filing
| 1st Time | Form B1 & B
Complete the particulars of your child in Appendix 2. |
| Subsequent Claim | Form B1 & B
Any unutilised balance is automatically carried forward to offset your future tax payable. |
Source: IRAS
Amending claim for PTR
In the case where your tax bill needs amending due to claims for PTR, you will need to make the following changes:
You will have to file an amendment using the “Object to Assessment” digital service atmyTax Portal within 30 days from the date of your tax bill.
If you are unable to use the digital service, you will have toemail IRAS, together with supplementary documents.
| Step 1 | A letter signed by both you and your spouse, stating:
● Name, NRIC number, and child order to claim PTR ● The basis of apportionment between you and your spouse (e.g. your spouse: 50%, you: 50%) ● You and your spouse’s full name and NRIC number ● Confirmation that both of you have met the qualifying conditions |
| Step 2 | The following documents, where applicable:
● A copy of your child’s legal adoption papers (for an adopted child) ● A copy of your marriage certificate (if your marriage was registered outside Singapore) ● A copy of the court order on the custody and/or maintenance of child/children from a previous marriage. |
Source: IRAS
Frequent FAQs relating to PTR Claims
Here are some answers to commonly asked questions about PTR claims below:
What if I don’t need to pay taxes due to my low income?
You are still encouraged to claim your tax filing even if you do not need to pay tax. This would allow the PTR to automatically be used to offset against your or your spouse’s income tax payable in future years.
Will IRAS top up my PTR account?
No, the PTR is given only once per qualifying child.
Also, the PTR is given only once in the Year of Assessment immediately following the year of the birth of your child. If you did not fully utilise the rebate in that Year of Assessment, the balance will be carried forward to offset your tax liability in the future Years of Assessment or until it is fully utilised.
We are here to help!
Parenthood Tax Rebate not only wishes to encourage couples to have more children, but its function also conveniently allows you to offset your tax liability as well. It takes time to understand and plan, especially if you are also caring and planning for yourself and your family.
If you still have any queries, simply fill in the form below and contact us for a non-obligatory consultation now!
