It’s good to have babies – enjoying the cute little ones, having family life, experiencing unconditional love, passing down your genes…
In Singapore, you even get financially rewarded for having babies. As the country is facing a dearth of babies, the government encourages procreation by giving baby bonuses and parenthood tax rebates.
If you have 1 baby, you’ll be given a cash bonus of $3,000, paid out in 4 installments.
It gets better. For your 2nd baby, you’ll be given another bonus of the same amount, and you and your spouse get to share a $10,000 tax rebate. If both of your taxes are assessed to be $2k a year, you don’t have to pay any tax for the next 5 years! To top it off, you get to open a Child Development Account for your baby (essentially a savings account), and the government will match whatever amount you deposit, up to $6,000. You put in $6,000; the government puts in $6,000.
More to come. For your 3rd baby, the numbers are doubled – $6,000 cash bonus, $20,000 additional tax rebate, and $12,000 matching deposit.
Your 4th child also gets $6,000 bonus and $12,000 matching deposit. Tax rebate is capped at an additional $20,000, on top of the $10,000 + $20,000 already given for your 2nd & 3rd children.
To summarize, if you have:
- 1 child, total monetary rewards from government = $3k
- 2 children, cumulative total = $3k + $3k + $10k + $6k = $22k
- 3 children, cumulative total = $22k + $6k + $20k + $12k = $60k
- 4 children, cumulative total = $60k + $6k + $20k + $12k = $98k
Wow, this is good money. So why is the birth rate still shamefully low?
22 Comments
Just want to know if this baby bunos only applicable for Singaporeans? Hows about for PR’s?
because, many singaporeans think the money is NOT attractive enough. Singaporeans are so use to get everything for free / subsidised. (health, tax, childbirth, housing, cpf topups and etc).
IRAS website stated that we do not need to submit any parenthood tax rebate during annual income filing if we have claimed it before. What does that mean? They will know that we have a new born 3rd or 4th child in the family?
Apart from $ and c, other reasons would be social reasons such as perceived lack of time, hindrance to achieving your dreams or career goal and even lack of security between husband and wife (given relatively higher divorce rate with each passing year)…
How do I go about making the claim with government sector. There will be 2months leave payable by government but how to go about it????
My existing company will be changed to a home based. Do I still get the benefits???
Please could you advise how can I apply for tax rebate for my 3rd child ? Thanks.
If I recall correctly, when you file for tax online, there’ll be a page for you to fill up the particulars of your new born child. Please let us know if this is still the case. Thanks!
Is a child before marriege of a previously foreigner and granted a Singapore Citizine can join NS? The mother is now a citizine but the child is still in her home country.
why do you want your son to serve ns?
Between OCBC and Stanchart, which is the better bank for a CDA account?
An acquaintance told me her online account with Stanchart gets 1% interest because it is “linked” to a CDA account. I didn’t manage to find out more from her as it was a quick conversation. Can anyone tell me more?
Appreciate any help.