Effective Year of Assessment 2026, IRAS has expanded the Life Insurance Relief to allow wives to claim tax relief on insurance premiums paid on life insurance policies owned by their husbands. Previously, the relief was restricted to premiums paid on the taxpayer’s own policy or on a policy owned by the taxpayer’s spouse where the taxpayer was the insured. The change, announced in Budget 2025, promotes greater equity in tax treatment for married couples and recognizes shared financial responsibilities.
Key Takeaways
- Broader Eligibility for Married Taxpayers: A wife can now claim relief up to the prevailing cap (currently $5,000 less CPF contributions) for premiums paid on her husband’s policy, provided the policy satisfies the qualifying conditions such as sum assured exceeding 10 times the annual premium.
- Simplified Claim Process: The relief will be automatically computed based on the wife’s tax return declaration; no separate application is required, but supporting documents must be retained for IRAS verification for at least five years.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
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