Non-extension of Income Tax Relief for Foreign Maid Levy to Single Females Supporting Aged Parents

Er Dr Lee Bee Wah asked the Minister for Finance (a) what is the reason for the income tax relief for foreign maid levy being not extended to single females who are supporting their aged parents; and (b) whether the Ministry will look into extending the tax relief to cover all female tax payers who have to employ a foreign maid to care for their aged parents.

Mr Tharman Shanmugaratnam: The Government had introduced the foreign maid levy relief to encourage married women to stay in the workforce. For this reason, other individuals including singles are not eligible for the foreign maid levy relief.

Nonetheless, singles, whether men or women, can apply for the foreign domestic worker concessionary levy if they have young children, or are living with family members who are aged or have disabilities, as long as qualifying conditions are met. We have also reduced the levy over the years, most recently in Budget 2015, where the concessionary levy rate was halved from $120 to $60 a month.