In a move to ease the cost-of-living pressures faced by Singaporeans, the Government has introduced a one-time $200 personal income tax rebate for the Year of Assessment (YA) 2025. The rebate, announced as part of Budget 2024, is one of several measures rolled out to commemorate the country’s 60th year of independence, also referred to as SG60.
Here’s everything you need to know about the rebate who qualifies, how it works, and what it means for taxpayers.
What Is the 2025 Income Tax Rebate?
The 2025 Personal Income Tax Rebate is a one-off rebate of 60% of income tax payable, capped at S$200 per individual. It will be automatically applied to the taxes due for YA 2025, which covers income earned in calendar year 2024.
The rebate is part of a broader suite of SG60 benefits aimed at providing targeted support to Singaporeans, particularly the middle-income group who are feeling the effects of inflation and economic uncertainty.
This rebate will provide meaningful relief to over 2.9 million tax-resident individuals,” Finance Minister Lawrence Wong said during his Budget speech. “It reflects our continued commitment to keep tax burdens low while supporting Singaporeans through uncertain times.”
Who Is Eligible?
The Inland Revenue Authority of Singapore (IRAS) has outlined the criteria for eligibility on its official Personal Income Tax Rebate page.
To qualify, you must:
- Be a tax resident of Singapore for YA 2025
- Have a positive amount of income tax payable for that year
The rebate does not apply to:
- Non-residents
- Individuals who have no tax payable, due to zero income or full offset by other reliefs
Importantly, no application is required. IRAS will apply the rebate automatically when your tax liability for YA 2025 is assessed.
How Much Will You Get?
The rebate is calculated as 60% of the tax payable, up to a maximum of $200. The exact amount each person receives depends on their final tax bill for YA 2025.
Here are a few examples:
- If your tax payable is $150, you’ll receive a $90 rebate (60% of $150).
- If your tax payable is $500, you’ll receive the maximum rebate of $200 (60% of $500 = $300, capped at $200).
- If your tax payable is $0, you will not receive any rebate.
Also note that the rebate is non-refundable. This means if your tax bill is less than $200, the unused portion of the rebate will not be refunded to you in cash, nor carried forward to future years.
When and How Will It Be Applied?
You don’t need to do anything to benefit from the rebate. IRAS will apply it during the tax assessment process for YA 2025, which corresponds to income earned in 2024.
Key dates:
- Tax filing period: 1 March 2025 to 18 April 2025
(Visit the IRAS e-Filing Portal to submit your return.) - Notice of Assessment issuance: April to September 2025
You will receive a Notice of Assessment (NOA) by mail or through myTax Portal depending on your notification preference.
Once your tax is assessed, the rebate will be deducted from the final payable amount, and any remaining tax due can be settled via GIRO or other payment methods.
Why This Rebate Matters
The $200 income tax rebate is especially beneficial for middle-income Singaporeans who may not qualify for other forms of government aid like the GST Voucher or ComCare. According to government estimates, this measure will cost the state over S$500 million, but it is considered a worthwhile investment in social stability and economic support.
For many working adults, the rebate will either fully offset their tax bill or significantly reduce it, offering relief amid rising living costs in areas like housing, food, and transportation.
What If You Have Questions?
If you’re unsure whether you qualify or how the rebate applies to your specific case, IRAS has a comprehensive FAQ section on their official website. You can also contact them directly through:
- IRAS Hotline: 1800 356 8300
- Live Chat: Available on myTax Portal
For more updates on tax policy and government benefits, you can visit the Ministry of Finance (MOF) website.
Final Thoughts
The 2025 personal income tax rebate is a timely gesture by the Singapore government to support citizens during a challenging economic period. Though it may not seem like a huge sum, for many households, every bit helps especially when compounded with other Budget 2024 measures like CDC vouchers, U-Save rebates, and enhancements to the Assurance Package.
Whether you’re a first-time taxpayer or a seasoned professional, make sure to file your taxes accurately and on time to enjoy the full benefit of this rebate.