To encourage working mothers to have kids (Singapore citizens) and make sure they continue to work afterwards, the Government of Singapore offers them tax benefits in the form of Working Mother’s Child Relief or WMCR. This relief is also given to parents who make sure their kids take up the citizenship of Singapore. This tax relief is however not given to single women or male taxpayers.
The tax relief given is not the same for each kid and it varies based on the order of children in the family. The table given below shows the order of the child and how the tax benefits are determined:
|A child adopted legally||The relief given will be based on the adoption date as mentioned in the papers of adoption|
|A step-child||The relief offered will be on the basis of the child’s birth-date as given in the birth certificate|
|A child born to you and your ex-spouse/spouse before your marriage to your ex-spouse/spouse||The relief will be given based on the date of your marriage to your ex-spouse/spouse|
|A child born to you and your ex-spouse/spouse after your marriage to your ex-spouse/spouse||The relief offered will be on the basis of the child’s birth-date as given in the birth certificate|
A child who has passed away with a valid birth certificate will be taken into consideration to determine the order. However, a still-born child will not be considered as he/she would not have been issued a birth certificate.
If you want to claim the Working Mother’s Child Relief in the assessment year 2018, you should have fulfilled the following:
How much relief you will get for your children will be based on the order of your children. In other words, the amount will be determined based on when your child was legally adopted or born. The date of birth or the date of adoption is subsequently matched to a percentage of your income earned. If you make a claim for more than one child, the Working Mother’s Child Relief percentages are combined and the aggregate is capped at 100% of your earned income. The Working Mother’s Child Relief is computed as shown in the table below:
|Child Order||Working Mother’s Child Relief Amount|
|First Child||15% of the income earned by the mother|
|Second Child||20% of the income earned by the mother|
|Third and beyond||25% of the income earned by the mother|
There is a cap of S$80,000 on the total income tax relief claimed that will be applicable for the assessment year 2018. This cap is also applicable to Working Mother’s Child Relief.Illustration:
Mrs Wang has two children. Her earned income for the year 2017 was S$50,000. In 2017, her first child earned S$8,000. She is not eligible to claim Working Mother’s Child Relief on this child. However, for her second child, she is eligible to claim WMCR. The amount of relief that Mrs Wang can claim for the year 2018 is shown in the table below:
|Order||% earned income (A)||Amount in S$ (A) x earned income S$50,000||WMCR permissible to Mrs Wang (S$)||Cumulative WMCR permissible ($)|
|First||15||7,500||0||No relief will be given to her on her first child as the child has an income more than S$4,000|
|Second||20||10,000||10,000||10,000 (20% of her earned income)|
In case your husband or your ex-husband has already claimed the Handicapped Child Relief or Qualifying Child Relief on your child, you can still claim Working Mother’s Child Relief on that child if you fulfil the following conditions:
Consider an illustration: Mr and Mrs Abraham’s (both 40 years old) first child was born in the year 2017. Mrs Abraham was working and earned an income of S$40,000 for that year. Mrs Abraham has chosen to claim the entire amount of Qualifying Child Relief of S$4,000. Mr and Mrs Abraham are also eligible for Parenthood Tax Rebate of S$5,000 for their first kid. Mrs Abraham’s tax computation for the assessment year 2018 is as follows:
|Income of Mrs Abraham||S$40,000|
|Less: Total Personal Reliefs|
|Qualifying Child Relief||S$4,000|
|Earned Income Relief||S$1,000|
|Working Mother’s Child Relief||S$6,000 (15% of S$40,000)|
|CPF Relief||S$8,000 (20% of S$40,000)|
|Chargeable Income||S$40,000- S$19,000= S$21,000|
Based on this income (S$21,000), your income tax will be calculated. Whatever gross tax payable you are liable to pay, it will be adjusted against your PTR amount. In this example, Both Mr and Mrs Abraham are eligible for Parenthood Tax Rebate of S$5,000 for their first kid. Any PTR amount which has been not been utilised will be carried forward to counterbalance against the income tax payable for the following years until it has been fully used.
When you have to claim Working Mother’s Child Relief on kids for whom your husband has already claimed other benefits.
Mr and Mrs Razak have two kids. Their first kid is physically challenged. Mr Razak has already claimed HCR for the first kid and QCR for the other child. If Mrs Razak, earned an income of S$100,000 in 2017, her WMCR claim will be as follows:
|Order of the Child||Percentage of Mrs Razak earned income (A)||Amount (S$) (A) x Mrs Razak earned income $100,000||QCR/ HCR claimed by Mr Razak (S$)||WMCR claimed by Mrs Razak in S$||Aggregate of WMCR claimed by Mrs Razak (S$)|
|Second||20||20,000||4,000||20,000||15,000 + 20,000= 35,000|
e-Filing: If you have already claimed the Working Mother’s Child Relief in previous years, the relief will be pre-filled and given to you this year without you having to do anything. However, in case you wish to make changes to your relief, log in to myTax Portal using your IRAS Pin or SingPass and go to "Child", click "Update" and make changes to your claim.
On the other hand, if you are making a claim for the first time, you will have to take the following steps:
Paper Filing: If you have already done the paper filing in previous years, you will have to carry out the following steps:
If you are paper filing for the first time, you will have to take the following steps:Form B1
In case the amount of WMCR that you have received on your tax bill is incorrect, you will have to file a complaint within one month from the day you received the bill. You will have to use the “Objection to Assessment” e-Service on the tax portal. If you are not able to use e-service, you can send an email to the Inland Revenue Authority of Singapore by doing the following:
In case you have forgotten to claim your WMCR and are not able to re-file your return online, send an email to the Inland Revenue Authority of Singapore by doing the following: