Singapore Fact-File Part 7:
Business Owner Welfare and Lifestyle

7.6 Singapore Education

Education

Education in Singapore is divided into 6 years of primary education (4 years of foundation stage and 2 years of orientation stage education) culminating in the Primary School Leaving Examination, 4-5 years of secondary education (studying for either O or N levels, depending on whether the student is in the Special or Express streams, or the Normal (Academic) or Normal (Technical) streams, respectively).

There are several different types of secondary school, including autonomous schools (which get greater autonomy in terms of school management and – to a certain extent – curriculum) and independent schools, specialised independent schools, integrated programme schools (which permit gifted secondary age students in Singapore to pass straight to A levels, or to an International Baccalaureate or equivalent), and privately funded schools.

This is then usually followed by 2-3 years of pre-university education (studying for A-levels), and then tertiary education, studying for either a diploma or a degree.

In addition, there are also around 30 international schools in Singapore, although they are likely to be a relatively expensive option for the self-employed businessperson.

The tax treatment of education costs

The payment of school fees for dependents is not included in the list of permitted deduction and reliefs provided by the Inland Revenue Authority of Singapore, and where such fees are paid by an employer as a benefit in kind (of negligible interest to a self-employed entrepreneur, however), they are deemed to be taxable as income.

However, Course Fees Relief is sometimes available for individuals looking to improve their employment related skills, although it is not applicable to university or polytechnic students studying for vocational degrees or diplomas before they enter the job market, or to students working as interns, or during their university vacations.

Courses eligible for course fee relief include seminars, courses or conferences relating to the trade or vocation of the person in question, or one that relates to a career change, and/or a course, seminar or conference leading to a vocational qualification.
With regard to vocational qualifications, in order for a vocational qualification to count for Course Fees Relief, the skills or knowledge acquired must be applicable as part of the person’s vocation, or in a specific area in their industry, and the providers of the training or seminar must be registered in Singapore with the Accounting & Corporate Regulatory Authority (ACRA).

The acquisition of general skills (such as learning to use the internet, or various types of basic office software), or recreational or ‘hobby’ based skills will not qualify for the relief.

Relief should generally be claimed (in the tax return, under the ‘course fees’ heading) for fees paid in the preceding year, and the upper limit from the 2011 year of assessment is SGD5,500 (with the upper limit set at SGD3,500 prior to that). The claim should only be made for registration, examination, tuition and aptitude test fees.

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