SINGAPORE - The total amount of personal income tax relief an individual can claim will be capped at $80,000, Finance Minister Heng Swee Keat announced during his Budget speech on Thursday (March 24).
The change will not affect 99 per cent of tax-resident individuals, he said.
Instead, a small proportion of people, for whom the 15 personal income tax reliefs taken together may unduly reduce total taxable incomes, will be affected.
For example, nine out of 10 women currently claiming the Working Mother's Child Relief - a relief for women who choose to remain in the workforce after having children - are expected to continue to claim it fully.
"This cap will make our personal income tax system more progressive," Mr Heng said, emphasising that the personal income tax burden remains low. He added that the tax structure must allow Singapore to continue to stay competitive.
The cap will take effect from Year of Assessment 2018 and is estimated to raise an additional $100 million a year.