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Levy Concession for Foreign Domestic Workers in Singapore

Levy Concession for Foreign Domestic Workers in Singapore

Last Updated on October 16, 2022 by Parentology

It is tricky navigating being a working mother while also being concerned with your child while at work. Hiring a domestic worker could be an option, especially when you need support caring for your little one and around the house.

The Foreign Domestic Worker Levy (FDWL) Relief lets your family pay a subsidised levy over the full amount. This hopes to alleviate the cost paid for help while encouraging married women to stay in the workforce.

 

Qualifying for the FDWL Relief

Even as a working mother, you will need to satisfy all the conditions below to be eligible to claim the FDWL Relief for the Year of Assessment (YA) 2022:

  1. You or your husband employed a foreign domestic worker in 2021; and
  2. In 2021, you were:
    1. married and lived with your husband; or
    2. married and your husband was not a tax resident in Singapore; or
    3. separated from your husband, divorced or widowed, and had children who lived with you and on whom you could claim child reliefs.

The FDWL relief can only be used to offset your earned income.

 

Amount of Relief

Each household can get concessions twice in the previous year on one foreign domestic worker, regardless of whether you or your husband paid the levy. The maximum amount of all tax reliefs would still be capped at $80,000 for each Year of Assessment.

When it comes to the first foreign domestic worker (FDW) employed, the levy rate not on concession is $300 monthly. For the next FDW employed that is not on concession, you will have to pay the levy rate of $450 monthly.

YA 2022 Normal Concessionary
No. of months levy paid in 2021 12 12
Total levy paid in 2021 $3,600 (*$300 x 12 months)

or

$5,400 (*$450 x 12 months)

$720 ($60 x 12 months)

 

 

Maximum FDWL Relief for YA 2022 $7,200 (2 x $3,600)

or

$10,800 (2 x $5,400)

$1,440 (2 x $720)

 

 

Source: IRAS

 

YA 2021 Normal Concessionary
No. of months levy paid in 2020 12 12
Total levy paid in 2020 $3,600 (*$300 x 12 months)

or

$5,400 (*$450 x 12 months)

$720 ($60 x 12 months)

 

 

Maximum FDWL Relief for YA 2021 $7,200 (2 x $3,600)

or

$10,800 (2 x $5,400)

$1,440 (2 x $720)

 

 

Source: IRAS

 

YA 2020 Normal Concessionary
No. of months levy paid in 2019 12 12
Total levy paid in 2019 $3,495 [($265 x 3 months) + ($300 x 9 months)]

or

$4,845 [($265 x 3 months) + ($450 x 9 months)]

$720 ($60 x 12 months)

 

 

Maximum FDWL Relief for YA 2020 $6,990 (2 x $3,495)

or

$9,690 (2 x $4,845)

$1,440 (2 x $720)

 

 

Source: IRAS

 

YA 2019 Normal Concessionary
No. of months levy paid in 2018 12 12
Total levy paid in 2018 $3,180 ($265 x 12 months) $720 ($60 x 12 months)
Maximum FDWL Relief for YA 2019 $6,360 (2 x $3,180) $1,440 (2 x $720)

Source: IRAS

 

YA 2018 Normal Concessionary
No. of months levy paid in 2017 12 12
Total levy paid in 2017 $3,180 ($265 x 12 months) $720 ($60 x 12 months)
Maximum FDWL Relief for YA 2018 $6,360 (2 x $3,180) $1,440 (2 x $720)

Source: IRAS

 

Cases of relief computations

If you are still unsure of how to calculate the relief you are entitled to, here are some common scenarios below.

 

What if you hired your domestic helper for only 3 months in 2021?

As a working mother, hiring your domestic helper for only three months will allow you to be eligible for FDWL Relief of $1,800.

Levy rate per month $300
No. of months levy paid in 2021 3
Total levy paid in 2021 $900 ($300 x 3 months)
Amount claimable in YA 2022 $1,800 (2 x $900)

Source: IRAS

 

What if you hired more than one domestic helper in 2021?

You are entitled to claim $10,800 of FDWL Relief on one helper only.

Levy rate per month $300 (1 domestic helper)

 

$450 (2 and subsequent domestic helpers)

No. of months levy paid in 2021 12
Total levy paid in 2021 $14,400 ($300 x 12 months + $450 x 12 months x two helpers)
Amount claimable in YA 2022 $10,800 on one helper only (i.e., $450 x 12 months x 2)

Source: IRAS

 

In 2021, your family paid a total of $14,400 of the total foreign domestic worker levy for your three helpers in 2021. You may claim the higher FDWL Relief on one helper only for YA 2022.

Similarly, your husband will not be able to claim the relief as male taxpayers are not eligible for this relief.

 

Claiming FDWL by e-Filing and Paper filing

 

E-Filing

The process varies depending on whether it is your first time claiming the rebate.

1st Time
  1. Login with your Singpass or Singpass Foreign user Account (SFA) at myTax Portal.
  2. Go to “Individuals” > “File Income Tax Return”.
  3. Select “Edit My Tax Form”.
  4. Go to “4. Deductions, Reliefs and Parenthood Tax Rebate”.
  5. Go to “Foreign Domestic Worker Levy” and enter your claim.
Subsequent Claim If the relief was allowed to you last year, the amount will be pre-filled and granted to you automatically this year.

Source: IRAS

 

Paper Filing

You may fill out Form B1 &B and complete the item on “Foreign Domestic Worker Levy Relief”.

 

Amending claim for GCR

In the event, you forget to claim or need to make amendments to your claim for GCR, it depends on whether you claimed by e-filing, or you filed a paper income tax return.

 

If you e-Filed your Income Tax Return

You would need to re-file within 7 days of your previous submission or by 18 Apr, whichever is earlier. You will only be able to re-file once. When you re-file, you must include all your income details, expenses, donations, and relief claims, where applicable. Once you have re-filed successfully, your new submission will override the previous submission.

 

If you filed a paper Income Tax Return or are unable to re-file online

Please email IRAS:

  1. your request to claim or revise the relief;
  2. the amount of relief that you wish to claim or revise;
  3. the amount of foreign domestic worker levy paid in the previous year; and
  4. your confirmation that you have met the qualifying conditions.

 

Amending claim for GCR

You will need to file an amendment using the “Object to Assessment” digital service at myTax Portal within 30 days from the date of your tax bill.

If you are unable to do so, you can email IRAS:

  1. your request to claim or revise the relief;
  2. the amount of relief that you wish to claim or revise;
  3. the amount of foreign domestic worker levy paid in the previous year; and
  4. your confirmation that you have met the qualifying conditions.

 

We are here to help!

The Foreign Domestic Worker Levy (FDWL) Relief allows you to receive peace of mind and alleviate some of your financial burden as a working mother when it comes to hiring a domestic worker to support caring for your little one or just receiving help around your house. f you still have any unanswered questions, we are here to help. Simply fill in the form below and contact us for a non-obligatory consultation now!

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