Designed to encourage rootedness in individuals, reducing the income gap and recognising new social trends, the proposals are:
20. Encouraging individuals to work and excel by:
- increasing the Earned Income Relief (EIR) and Handicapped EIR by $5,000 for all age groups
- expanding the zero percent tax bracket from $20,000 to $30,000 to help the sandwiched class
- making permanent the tax deduction of 2.5 times for donations.
21. Supporting the family unit by:
- increasing spouse relief to $5,000
- extending the foreign maid levy relief to male taxpayers with a non-working spouse and at least three dependent children aged 16 years and below
- providing relief for qualified education expenses incurred for dependent children.
22. Encourage retirement planning by:
- enhancing Life Insurance relief by removing the CPF contribution limit enhancing the Supplementary Retirement Scheme (SRS) by removing the taxation upon withdrawal and raising the annual contributions caps. If the SRS is fine-tuned, there would be no need to liberalise Section 5 pension plans.
23. Liberalise Not Ordinarily Resident Scheme by:
- lowering the 90-day minimum for overseas business travel to 75 days in the Not Ordinarily Resident (NOR) taxpayer scheme where time apportionment concessions can be enjoyed, and remove the five-year maximum NOR qualifying period. More expatriates stay longer now due to regional responsibilities.