The Singapore Parent Relief Scheme offers a system of tax relief for people who support their elderly parents, grandparents, parents or parents-in-law, and grandparents-in-law. It is an effort to promote filialhood and extend some financial help to the caregivers who have incurred costs on taking care of their elders.
Eligibility Criteria for Parent Relief in 2025
For Parent Relief in 2025, various conditions have to be met by the dependants. It is essential for the dependant to be a citizen of Singapore, a permanent resident, or possess a Long-Term Visit Pass. He or she should have reached, or will reach, the age of 55 in 2024 unless evidence is produced to show that the dependant is physically or mentally dependent or handicapped, in which case the age requirement is waived.
In 2024, the dependant should be not earning an annual income above $8,000, including wage payments, rent collections, pensions, and investment interests. The claimant had to have put forward sufficient financial support between January 1 and December 31 of the year in the previous year.
Where more than one person took care of the same dependant, the parent relief could be shared among them, or as a result of an agreement from among them based on agreed apportioning.
Claimable Amounts Under the Parent Relief Scheme
The amount claimable as tax relief is linked to the living arrangements of the claimant and the dependant. If the dependant lived with the claimant in the same dwelling for at least six months in 2024, the relief amount was $9,000 per dependant. Should the dependant reside separately, the claimer could apply for claimable amount to be reduced to $5,500 per dependant provided the claimant had spent $2,000 or more in supporting the dependant in the previous year.
For dependants who are physically or mentally incapacitated, Handicapped Parent Relief is the way to go. At a higher rate, he can even claim $14,000, provided the dependant stayed with him, but only $10,000, if the dependant lived separately.
Procedure To Claim Parent Relief In 2025
The claim for Parent Relief must be reported in the income tax return for YA 2025. Claimants shall have to present the necessary information on the dependants, as well as proof that they have provided financial support to them. Further documentation may be required by the Inland Revenue Authority of Singapore (IRAS) in order to verify the taxpayer’s claim.
Conclusion
The Parent Relief Scheme remains a necessary tax benefit for individuals looking after the elderly. Understanding the criteria and the relief amount can enable tax savings that will help increase their loved ones’ welfare. Abiding by IRAS guidelines and maintaining clear records will prove their worth by ensuring a relatively easier claim.