31. Section 42A of the principal Act is repealed and the following section substituted therefor:“Rebate for second, third and fourth child of family |
42A.—(1) Where an individual resident in Singapore has —(a) | a legitimate second child of the family born to him; or | (b) | a second child of the family adopted by him under any written law relating to the adoption of children, |
on or after 1st January 2004, there shall, in respect of that child, be allowed for the year of assessment immediately following the year of birth or adoption of that child, a rebate of $10,000 against the tax payable by that individual; but where more than one individual is entitled to claim such rebate in respect of that child, the rebate shall be apportioned between them in such proportion as they may agree, or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable. |
(2) Where an individual resident in Singapore has —(a) | a legitimate third or fourth child of the family born to him; or | (b) | a third or fourth child of the family adopted by him under any written law relating to the adoption of children, |
on or after 1st January 2004, there shall, in respect of that child, be allowed for the year of assessment immediately following the year of birth or adoption of that child, a rebate of $20,000 against the tax payable by that individual; but where more than one individual is entitled to claim such rebate in respect of that child, the rebate shall be apportioned between them in such proportion as they may agree, or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable. |
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(3) For the purposes of subsections (1) and (2), where full effect cannot be given to the rebate in respect of any child by reason of an insufficiency of the tax payable by an individual for that year of assessment, the balance of the unabsorbed rebate shall be available for deduction against the tax payable by the individual for the year of assessment immediately following that year of assessment and any subsequent year of assessment. |
(4) Where the second, third or fourth child in respect of whom a rebate is allowable to an individual under this section is adopted by another person, the rebate or balance, if any, of the unabsorbed rebate shall not be available for deduction against the tax payable by the individual for any year of assessment following the year in which the child is adopted. |
(5) Where, for the year of assessment 2005 or any subsequent year of assessment, an individual would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1) and (2)(a) in force immediately before 1st January 2005 but for the repeal of that section, such rebate or balance shall, subject to subsection (4), be available for deduction against the tax payable by that individual for the year of assessment 2005 and any subsequent year of assessment; but where more than one individual is entitled to claim such rebate, the rebate shall be apportioned between them in such proportion as they may agree, or, in the absence of any agreement, in such manner as appears to the Comptroller to be reasonable. |
(6) Where, for the year of assessment 2005 or any subsequent year of assessment, a married woman would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(2)(b) and (3) in force immediately before 1st January 2005 but for the repeal of that section —(a) | such rebate or balance shall, subject to subsection (4), be available for deduction against the tax payable by that woman for the year of assessment 2005 and any subsequent year of assessment up to 9 years of assessment immediately following the year of birth of the third child or fourth child, as the case may be; and | (b) | where the fourth child is born within 9 years of the birth of the third child and full effect cannot be given to the rebate in respect of the fourth child by reason of an insufficiency of the tax payable by that woman for that year of assessment, the rebate or balance, if any, of the unabsorbed rebate shall, subject to subsection (4), be available for deduction, in the case of the fourth child, against the tax payable by that woman for up to 9 years of assessment immediately following the last year of assessment in which the rebate in respect of the third child may be allowed under paragraph (a). |
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(7) Where, for the year of assessment 2005 or any subsequent year of assessment, a married woman would have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1), (2) and (3) in force immediately before 1st January 2005 but for the repeal of that section, the rebate or balance of the unabsorbed rebate in respect of the third child or fourth child, as the case may be, under section 42A(2)(b) and (3) in force immediately before 1st January 2005 shall —(a) | subject to subsection (4), first be allowed for deduction against the tax payable by that woman before the rebate or balance of unabsorbed rebate under section 42A(1) and (2)(a) in force immediately before 1st January 2005 is allowed; and | (b) | subject to section 42A(4)(b) and (c) in force immediately before 1st January 2005, be available for deduction for the year of assessment 2005 and any subsequent year of assessment. |
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(8) Where a marriage has been dissolved by divorce or annulment and an individual is entitled to claim —(a) | any rebate or balance of the unabsorbed rebate under section 42A(1) or (2) in force immediately before 1st January 2005, but for the repeal of that section, in respect of any child born to the individual from that marriage; and | (b) | any rebate under section 42A(1) or (2) in force immediately before 1st January 2005, but for the repeal of that section, in respect of any child born to the individual after the dissolution of the marriage, |
subsections (5), (6) and (7) shall only apply to any second, third or fourth child, as the case may be, born to the individual after the dissolution of the marriage. |
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(9) Where a marriage was dissolved by divorce or annulment before 1st January 2002 and an individual would, but for section 42A(3)(e) in force immediately before that date, have been entitled to claim any rebate or balance of the unabsorbed rebate under section 42A(1) or (2) in force immediately before 1st January 2005, such rebate or balance shall, subject to subsection 42A(4)(a) to (d) in force immediately before 1st January 2005, be available for deduction against the tax payable by that individual only on due claim by that individual after that date and only for any year of assessment from the year of the claim. |
(10) No rebate shall be allowed under this section in respect of a child who —(a) | at the time of his birth or adoption, has more than 3 other siblings who are members of the same household; or | (b) | is adopted by an individual before the individual is married. |
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(11) In this section —“second child of the family” means a child of the family being a citizen of Singapore at the time of his birth or adoption, or within 12 months thereafter, and who, at the time of his birth or adoption, has one other sibling who is a member of the same household; |
“third child of the family” means a child of the family being a citizen of Singapore at the time of his birth or adoption, or within 12 months thereafter, and who, at the time of his birth or adoption, has 2 other siblings who are members of the same household; |
“fourth child of the family” means a child of the family being a citizen of Singapore at the time of his birth or adoption, or within 12 months thereafter, and who, at the time of his birth or adoption, has 3 other siblings who are members of the same household; |
“sibling” means a brother or sister and includes a step-brother, a step-sister and a brother or sister adopted under any written law relating to the adoption of children. |
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(12) For the purposes of subsection (11), any sibling who is deceased shall be taken into account in determining the number of siblings a child has at the time of his birth or adoption unless otherwise determined by the Comptroller.”. |
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