Relief and deduction for resident individual and Hindu joint family
39.—(1)  In the case of an individual or Hindu joint family resident in Singapore in the year of assessment, there shall be allowed —
(a)a deduction of $3,000; and
(b)a deduction, in respect of earned income, which shall be —
(i)in the case of an individual not falling within any other sub-paragraph or a Hindu joint family, the sum of $1,000 or the amount of the earned income;
(ii)without prejudice to any deduction allowable under sub-paragraph (iii) or (iv), in the case of an individual who, in the year immediately preceding the year of assessment, was totally blind or suffering from any physical or mental disability which permanently and severely restricted his capacity for work, the sum of $2,000 or the amount of the earned income;
(iii)in the case of an individual who, at any time in the year immediately preceding the year of assessment, was above 55 years of age but was not above 60 years of age, the sum of $3,000 or the amount of the earned income; and
(iv)in the case of an individual who, at any time in the year immediately preceding the year of assessment, was above 60 years of age, the sum of $4,000 or the amount of earned income,
whichever is the less.
[37/75; 1/82; 15/83; 26/93]
(2)  In the case of an individual resident in Singapore in the year of assessment who, in the year immediately preceding the year of assessment —
Deduction for wife
(a)had a wife living with or maintained by him, there shall be allowed a deduction equal to the amount by which the sum of $2,000 exceeds the amount of income chargeable in the wife’s own name;
[Deduction for alimony]
(b)paid alimony to a previous wife whose marriage with him has been dissolved by any court of competent jurisdiction, there shall be allowed a deduction of the amount of such alimony or $2,000 whichever is the less;
[Deduction for payments under order or deed]
(c)made payments in accordance with an order of court or deed of separation to a wife from whom he was separated by such order or deed, there shall be allowed a deduction of the amount of such payments or $2,000, whichever is the less:
Provided that the total deductions allowed to any individual under this paragraph and paragraphs (a) and (b) shall not exceed $2,000;
Deduction for handicapped spouse
(d)maintained a spouse or previous spouse, as the case may be —
(i)who was incapacitated by reason of physical or mental infirmity;
(ii)whose income (other than payment of maintenance or alimony received from that individual under an order of court or deed of separation) was not more than $2,000 in that year; and
(iii)in respect of whom no deduction has been claimed by another person under paragraph (i) or (j),
there shall be allowed in respect of —
(A)such spouse a deduction of $3,500; or
(B)such spouse from whom he was separated by an order of court or deed of separation, a deduction of the amount of payments made in accordance with such order or deed or $3,500, whichever is the less; or
(C)such previous spouse whose marriage with him has been dissolved by any court of competent jurisdiction, a deduction of the amount of alimony paid to the previous spouse or $3,500, whichever is the less:
Provided that the total deductions allowed to the individual under this paragraph and paragraph (a), (b) or (c) shall not exceed $3,500.
Deduction for children
(e)maintained an unmarried child —
(i)being under the age of 16 years at any time during the year preceding the year of assessment;
(ii)receiving full-time instruction at any university, college, school or other educational institution;
(iii)serving under articles or indentures with a view to qualifying in a trade or profession; or
(iv)incapacitated from maintaining himself by reason of physical or mental infirmity,
there shall be allowed in respect of each such child according to his age among those eligible, a deduction in accordance with the Fifth Schedule: Provided that in the case of any unmarried child incapacitated from maintaining himself by reason of physical or mental infirmity whose income was not more than $2,000 in that year and in respect of whom —
(A)a deduction is allowable under paragraph 1 or 3 of the Fifth Schedule, the deduction shall be increased to $3,500;
(B)no deduction is allowable under the Fifth Schedule, there shall be allowed a deduction of $3,500;
Deduction for delivery and hospitalisation expenses
(e)incurred delivery and hospitalisation expenses in respect of a legitimate 4th child born to him on or after 1st January 1988 and maintained by him, there shall be allowed a deduction against his earned income of the amount of such expenses or $3,000, whichever is the less:
Provided that where more than one individual is entitled to claim such deduction, the deduction shall be apportioned between the individuals in question in such proportion as they agree, or, in the absence of such agreement, in such proportion as appears to the Comptroller to be reasonable;
Deduction for life insurance and contributions to approved pension, provident fund or society
(g)has made insurance on his life or on the life of his wife with any insurance company or has contributed as an employee to an approved pension or provident fund or society or has made any contribution or suffered any abatement from his salary or pension under any Act for the time being in force in Singapore relating to widows’ and orphans’ pensions or under any approved scheme within the meaning of any such Act, there shall be allowed a deduction of the aggregate of all premiums for such insurance and all such contributions and abatements paid, made or suffered by him in that year:
Provided that —
(i)in the case of any policy securing a capital sum on death (whether in conjunction with any other benefit or not), the amount to be deducted in respect of that policy shall not exceed 7% of that capital sum, exclusive of any additional benefit by way of bonus, profits or otherwise;
(ii)no deduction shall be allowed in excess of $5,000 except that where the contributions made to an approved pension or provident fund or the Central Provident Fund exceed $5,000, the excess contributions shall, subject to subsections (6) to (10), be allowed as a deduction;
(iii)no such deduction shall include any sum contributed to an approved pension or provident fund or society unless the contribution of such sum thereto was obligatory by reason of any contract of employment or of any provision in the rules or constitution of the fund or society;
(iv)no such deduction shall include any sum which has been claimed and allowed to a husband or wife under this paragraph;
(v)no such deduction shall be allowed unless the insurance company has an office or a branch in Singapore but this sub-paragraph shall not apply to any insurance contract entered into by an individual resident in Singapore prior to the coming into operation of this sub-paragraph;
(vi)in the case of an individual who has made contributions to an approved pension or provident fund, no such deduction shall exceed the contributions which would have been recoverable under section 7(2) of the Central Provident Fund Act (Cap. 36) had contributions been payable in respect of him to the Central Provident Fund;
(vii)notwithstanding sub-paragraph (iii), no deduction shall be allowed in respect of any sum contributed to the Central Provident Fund for any period on or after 1st January 1999 by an employee who holds a professional visit pass, an employment pass or a work permit;
Deduction for CPF contributions by self-employed
(h)has carried on a trade, business, profession or vocation and has made contributions to the Central Provident Fund on his own account, or has derived income from a trade, business, profession or vocation and has made contributions in respect of such income to the Fund which were obligatory under the Central Provident Fund Act, there shall be allowed a deduction, in respect of such contributions, of an amount not exceeding 20% of his assessable income for that year of assessment derived from such trade, business, profession or vocation or $14,400 , whichever is the less:
Provided that —
(i)where the contributions to any approved pension or provident fund or society under paragraph (g) and this paragraph do not exceed $5,000, the total deductions allowable under paragraph (g) and this paragraph shall not exceed $5,000, and where such contributions exceed $5,000 no deduction shall be allowed in respect of premiums for life insurance;
(ii)the total deductions allowable under paragraph (g) and this paragraph in respect of contributions to any approved pension or provident fund or society shall not exceed $14,400 where the deduction allowable under paragraph (g) is less than $14,400 in respect of such contributions;
(iii)no deduction shall be allowed under this paragraph where a deduction of $14,400 or such other amount as may be prescribed or more has been allowed under paragraph (g) in respect of contributions to any approved pension or provident fund or society;
(iv)where the total deductions allowable under this paragraph in respect of contributions which are obligatory under the Central Provident Fund Act (Cap. 36) and under paragraph (g) in respect of contributions to any approved pension or provident fund or society exceed $14,400, sub-paragraphs (ii) and (iii) shall not apply to such amount of contributions in excess of $14,400 which are allowable under this paragraph;
Deduction for aged parents
(i)maintained any dependant living in Singapore —
(i)who was his or his spouse’s parent, grandparent or great-grandparent;
(ii)who was not less than 55 years of age or who was otherwise incapacitated from maintaining himself by reason of physical or mental infirmity;
(iii)whose income was not more than $2,000 in that year; and
(iv)in respect of whom no deduction has been claimed by another person under paragraph (a), (b), (c) or (d),
there shall be allowed in respect of each such dependant —
(A)a deduction of $4,500, where the dependant was living with him in the same household; or
(B)a deduction of $3,500, where the dependant was not living with him in the same household but in respect of whom a sum of not less than $2,000, or such lower sum as the Comptroller may determine, was incurred in that year by the individual in maintaining the dependant:
Provided that a deduction under this paragraph in respect of any one dependant shall be allowed to one person only and no person may obtain a deduction under this paragraph for more than 2 dependants, and where more than one individual claims a deduction in respect of the same dependant, the deduction shall be allowed to such claimant as the individuals may agree or, failing such agreement, to such claimant as determined by the Comptroller whose decision shall be final;
Deduction for maintenance for handicapped siblings
(j)maintained any dependant living in Singapore —
(i)who is his or his spouse’s brother or sister;
(ii)who was incapacitated from maintaining himself by reason of physical or mental infirmity;
(iii)whose income was not more than $2,000 in that year;
(iv)in respect of whom no deduction has been claimed by another person under paragraph (a), (b), (c), (d) or (e); and
(v)who was living with him in the same household or in respect of whom a sum of not less than $2,000, or such lower sum as the Comptroller may determine, was incurred in that year by the individual in maintaining the dependant,
there shall be allowed in respect of each such dependant a deduction of $3,500; and where more than one individual is entitled to claim a deduction in respect of the same dependant the deduction shall be apportioned in such manner as appears to the Comptroller to be reasonable;
Deduction for course fees
(k)had undertaken any course of study for the purpose of gaining an approved academic or professional qualification or such other approved course as is related to his trade, business, profession, vocation or employment, there shall be allowed a deduction of the amount incurred by him in that year on the fees (including examination and tuition fees) for the course, subject to a maximum deduction of $2,500; but no deduction shall be allowed under this paragraph in respect of any sum which has been allowed under section 14;
Deduction in respect of operationally ready national servicemen
(l)was an operationally ready national serviceman who —
(i)had performed operationally ready national service and held a valid certificate issued by the proper authority certifying that he is entitled to the deduction under this sub-paragraph, there shall be allowed a deduction of $2,000; or
(ii)had not performed operationally ready national service but held a valid certificate issued by the proper authority certifying that he is entitled to the deduction under this sub-paragraph, there shall be allowed a deduction of $1,000;
(m)was the wife or widow of an operationally ready national serviceman and was a citizen of Singapore who had not made a claim under paragraph (n) and had in the case of the wife elected for separate assessment under section 51(6), there shall be allowed a deduction of $500 subject to the following provisions:
(i)the marriage to such national serviceman had not been dissolved by divorce or annulment at the end of the basis period for that year of assessment;
(ii)where the wife of such national serviceman dies during the basis period for that year of assessment, her executor shall not be entitled to a deduction under this paragraph if such national serviceman remarries during that basis period;
(iii)where such national serviceman has more than one wife, the deduction under this paragraph in respect of such national serviceman shall be allowed to any one wife as such national serviceman may nominate;
(iv)where such national serviceman has more than one widow, only the widow who was nominated under sub-paragraph (iii) shall be allowed a deduction under this paragraph;
(v)no deduction under this paragraph shall be allowed to a wife of such national serviceman who is not entitled to a deduction under paragraph (l) for that year of assessment; and
(vi)where such national serviceman dies during the basis period for any year of assessment for which he is not entitled to a deduction under paragraph (l), no deduction under this paragraph shall be allowed to his widow for that year of assessment;
(n)was a parent of an operationally ready national serviceman and was a citizen of Singapore who had not made a claim under paragraph (l) or (m), there shall be allowed a deduction of $500 subject to the following provisions:
(i)such national serviceman is a legitimate child, stepchild or child adopted under any written law relating to the adoption of children;
(ii)where more than 2 parents claim the deduction under this paragraph in respect of such national serviceman, the deduction in respect of such national serviceman shall be allowed to any 2 parents as such national serviceman may nominate;
(iii)where such national serviceman has died, his parents shall continue to be allowed a deduction under this paragraph, except that where he dies during the basis period for any year of assessment for which he is not entitled to a deduction under paragraph (l), his parents shall not be allowed a deduction under this paragraph for that year of assessment;
(iv)where a parent has more than one child who is an operationally ready national serviceman, the deduction under this paragraph shall be allowed to the parent in respect of only one such national serviceman; and
(v)no deduction under this paragraph shall be allowed to a parent of an operationally ready national serviceman who is not entitled to a deduction under paragraph (l) for that year of assessment.
[26/73; 4/75; 37/75; 1/82; 5/83; 31/86; 1/88; 1/90; 23/90; 20/91; 2/92; 28/92; 26/93; 11/94; 32/95; 28/96; 1/98; 32/99]
(3)  In the case of an individual resident in Singapore in the year of assessment who is a citizen or permanent resident in Singapore and who, in the year preceding the year of assessment, has paid money in accordance with section 18 of the Central Provident Fund Act (Cap. 36) to his or his parent’s retirement account , there shall be allowed a deduction of the amount of such payment or $6,000, whichever is the less.
[1/88]
(4)  The total deduction allowed under subsection (3) in respect of any amount paid by a person to his and his parent’s retirement accounts shall not exceed such amount as may be prescribed; and where more than one person is entitled to claim such deduction in respect of the same parent , the deduction shall be apportioned in such manner as appears to the Comptroller to be reasonable.
(5)  For the purposes of subsection (3), a claim for deduction shall only be granted if the claim contains such particulars and is supported by such proof as the Comptroller may require.
[1/88]
(6)  Where in any year an individual has made contributions to the Central Provident Fund in respect of additional wages paid to him in that year, no such deduction shall include any contributions in respect of that part of the additional wages which exceeds 40% of all ordinary wages paid to him in that year, except —
(a)where all his ordinary wages paid in that year do not exceed $72,000 and his total wages paid in the same year do not exceed $100,000; or
(b)where all his ordinary wages paid in that year do not exceed $72,000 but his total wages paid in the same year exceed $100,000, the contributions on that part of his total wages up to $100,000 shall be allowed as a deduction.
[23/90]
(7)  Where in any year an individual is employed by 2 or more employers and the employers are related to each other within the meaning of section 10C(4), subsection (6) shall apply, with the necessary modifications, as if all the ordinary and additional wages from those related employers were paid by one employer.
(8)  Subsections (6) and (7) shall apply, with the necessary modifications, to contributions made by an individual to an approved pension or provident fund as if those contributions were contributions made to the Central Provident Fund; except that paragraphs (a) and (b) of subsection (6) shall only apply to an approved pension or provident fund designated by the Minister for this purpose.
(9)  Where in any year an individual has made contributions to the Central Provident Fund or to a pension or provident fund designated under subsection (8), in addition to any other approved pension or provident fund, no deduction shall be allowed in respect of the whole of the contributions made to that approved pension or provident fund.
(10)  For the purposes of subsection (2)(g), where in any year an individual has made contributions (not being contributions under section 7(2) of the Central Provident Fund Act (Cap. 36)) to the Central Provident Fund in respect of overseas ordinary wages or overseas additional wages paid to him by any relevant employer in that year, no deduction shall include any contributions in respect of that part of his overseas total wages which exceeds $100,000, if his overseas additional wages exceed $28,000 and his overseas total wages exceed $100,000.
[11/94]
(11)  In the case of a woman resident in Singapore who, in the year immediately preceding the year of assessment, is —
(a)living with her husband and who has elected to be charged in her own name under section 51(6);
(b)married and her husband is not resident in Singapore; or
(c)married but separated from her husband, a divorcee or a widow and who, in the year immediately preceding the year of assessment, 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 subsection (2)(e),
there shall be allowed a deduction against her earned income equal to twice the amount of levy imposed under the Employment of Foreign Workers Act (Cap. 91A) (excluding any amount paid by way of penalty) and paid in the year immediately preceding the year of assessment in respect of one domestic servant employed by her or her husband.
[20/91]
(12)  In this section —
“additional wages” has the same meaning as in the Central Provident Fund Act;
“approved” means approved by the Minister or such person as he may appoint;
“operationally ready national serviceman” means any person who has completed national service under the Enlistment Act (Cap. 93) or been deemed to have completed such service by the proper authority;
“ordinary wages” has the same meaning as “ordinary wages for the month” in the Central Provident Fund Act (Cap. 36);
“overseas additional wages”, “overseas ordinary wages”, “overseas total wages” and “relevant employer” have the same meanings as in section 10C(7);
“proper authority” means such person as the Minister may appoint;
“total wages”, in relation to any year, means the total of the ordinary and additional wages in that year received by an employee;
“year” means any year from 1st January to 31st December.
[7/85; 11/94; 28/92; 28/96]
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