Parents may agree how to share Parenthood Tax Rebate.
For children born from 2008, the one-off amount is S$5,000 for the first child, S$10,000 for the second and S$20,000 for each subsequent child; allocations that do not total 100% are split equally by IRAS.
Rebate is not relief
PTR offsets tax payable after rates are applied; it does not reduce chargeable income. Model each spouse’s tax before PTR rather than comparing salaries alone. (IRAS Parenthood Tax Rebate)
For children born from 2008, IRAS lists S$5,000 for the first child, S$10,000 for the second and S$20,000 for each later child. Family-unit rules determine order. Confirm birth, adoption and previous-family facts.
| Situation | What changes |
|---|---|
| One spouse has most current tax payable | Allocate enough PTR to extinguish that bill first |
| Both spouses have tax payable | Compare the utilisation speed under several splits |
| Neither owes much this year | Claim and carry the unused balance forward |
| An existing balance sits with the lower-tax spouse | Use myTax Portal to transfer it |
Agree a full allocation
Spouses may choose the apportionment, but IRAS defaults to an equal split where claims do not add to 100% or the couple cannot agree. Write the percentages and check the total before filing. (IRAS tax-savings explainer)
PTR not used against current tax is carried forward automatically and is not paid out in cash. Include future taxable income when comparing allocation speed.
Example: A couple has S$5,000 of first-child PTR. Spouse A owes S$4,200 tax and Spouse B owes S$300. A 84:6 split uses S$4,500 this year and leaves S$500 to carry forward; a 50:50 split leaves more credit idle while A still pays tax. This is a worked illustration, not personal tax advice.
Balances can move later
One spouse can transfer unused PTR to the other through myTax Portal for the current Year of Assessment. Check the receiving spouse’s tax before initiating the transfer.
A 50:50 split can leave one balance idle while the other spouse pays tax. Run 100:0, 50:50 and the precise tax-matching split.
- Confirm eligibility and child order
- Calculate each spouse’s pre-PTR tax
- Test at least three allocations
- Make percentages total 100
- Submit the agreed claim
- Check carried-forward balances
- Transfer later if the tax pattern changes
