Changes in Working Mother’s Child Relief (“WMCR”)

Current The WMCR amount for eligible working mothers with a qualifying child who is a Singapore citizen is as follows, subject to a total cap of S$50,000 per child (i.e. WMCR plus Qualifying Child Relief/Handicapped Child Relief):

| Child Order | WMCR Amount For a qualifying Singapore citizen child born or adopted before 1 January 2024 | | --- | --- | | 1st | 15% of mother’s earned income | | 2nd | 20% of mother’s earned income | | 3rd and beyond | 25% of mother’s earned income |

The total WMCR amount that an eligible working mother can claim for all her qualifying children is capped at 100% of the mother’s earned income for the YA.

Proposed For an eligible working mother with a qualifying Singapore citizen child born or adopted before 1 January 2024, there is no change to the WMCR that the mother can claim. Working mothers of these children can continue to claim the WMCR in respect of these children based on the existing design and quantum.

The WMCR will be changed to a fixed dollar tax relief for eligible working mothers in respect of qualifying children who are Singapore citizens born or adopted on or after 1 January 2024. The WMCR amount for eligible working mothers in respect of a qualifying child who is a Singapore citizen born or adopted on or after 1 January 2024 is as follows:

| Child Order | WMCR Amount For a qualifying Singapore citizen child born or adopted after 1 January 2024 | | --- | --- | | 1st | S$8,000 | | 2nd | S$10,000 | | 3rd and beyond | S$12,000 |

This change will take effect from the YA2025.

If the amount of taxable earned income is lower than the maximum amount claimable, the relief will be capped at the amount of taxable earned income.

For a child born to a mother before she is married to her spouse/ex-spouse, the date of marriage would be used to determine the type of WMCR the mother is eligible for. For a child who is not a Singapore citizen at birth, it would be the date of approval of Singapore citizenship.

Foreign Domestic Worker Levy Tax Relief (“FDWLR”)

Current Currently, a woman resident in Singapore who, in the year immediately preceding the YA of claim, was:

1. living with her husband; or
2. married and her husband is not resident in Singapore; or
3. married but separated from her husband, a divorcee or a widow and who, in the year immediately preceding the YA, has any unmarried child or children living with her in the same household in Singapore in respect of whom she may be allowed a deduction under the Qualifying Child Relief,

is allowed to claim FDWLR in respect of one migrant domestic worker employed by her or her husband.

The amount of FDWLR is twice the total migrant domestic worker levy paid in the year immediately preceding the YA of claim on one migrant domestic worker.

Proposed The FDWLR will be lapsed for all taxpayers with effect from the YA2025.

Changes to Grandparent Caregiver Relief (“GCR”)

Current Working mothers who engage the help of their parents, grandparents, parents-in-law or grandparents-in-law (including parents or grandparents of an ex-spouse) to take care of their young children may claim the GCR, subject to conditions. One of the conditions is that the caregiver was not carrying on any trade, business, profession, vocation or/and employment in the year preceding the YA of claim.

Proposed Working mothers will be able to claim GCR in respect of caregivers who have trade, business, profession, vocation or/and employment income, as long as the caregivers’ total income from these activities does not exceed S$4,000 in the year preceding the YA of claim, if they have met all other conditions.

This change will take effect from the YA2024.

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