CLARIFICATION ON THE WORKING MOTHER’S CHILD RELIEF

In response to media queries, the Ministry of Finance clarifies that the Working Mother’s Child Relief is claimable by working mothers (includes widows and divorcees) for their 1^st to 4^th Singapore citizen children.  The children need not be born or adopted on or after 1 January 2004.

2.         The qualifying conditions are:

(a)        The child is the mother’s natural child, step child or legally adopted child;

(b)        The child is a Singapore citizen as at 31 December of the year preceding the Year of Assessment of claim;

(c)        The child is:

(i)         unmarried; and

(ii)        under 16 years old; receiving full time education at a school, college or university; or is handicapped; and

(iii)       The child does not have annual income (other than that received from scholarships, bursaries or similar educational endowment) exceeding $2,000 

3.         The quantum of relief, effective from Year of Assessment 2005, is:

·                    1st  child: 5% of mother’s earned income

·                    2nd child: 15% of mother’s earned income

·                    3rd child: 20% of mother’s earned income

·                    4th child: 25% of mother’s earned income

[4th child must be born on or after 1987 and cannot be a child adopted before 1 January 2004]