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Attractive tax benefits
SRS reduces your taxable income by the same amount that you contribute to your SRS account. Make a maximum yearly contribution of S$15,300 if you are either a Singaporean or PR. For foreigners, you can make a maximum yearly contribution of S$35,700.
SRS tax relief will be granted in the Year of Assessment following the year of contribution, so long as you are a tax resident for that Year of Assessment. It is important to note that SRS contributions are subject to a cap on personal income tax relief of S$80,000 per Year of Assessment. This means that if you have claimed $70,000 in other types of tax relief, you would only be eligible for $10,000 for tax relief on your SRS contributions.
Opportunity to gain higher returns
Uninvested SRS funds only earn returns of 0.05% per annum, so make your money work harder and further grow your retirement savings by investing your SRS funds in this scheme.
Non-taxable investment gains
We credit any of the gains you make from your investments directly to your SRS account, where they remain tax-free before withdrawal.
Flexibility to make withdrawals
Through this scheme, tax will be payable only when you withdraw your SRS savings (comprising both your SRS contributions and gains on investments). If you withdraw your SRS savings upon retirement, only 50% of the savings withdrawn will be subject to tax.
This applies for Singaporeans, PR and foreigners. You may spread your SRS withdrawals over a period of up to 10 years to meet your financial needs and benefit from greater tax savings. For example, after retirement, if you withdraw S$30,000 a year, you pay no taxes on the withdrawal, as half of that amount is S$15,000, which falls within the zero tax rate. Bear in mind that in the case of early SRS withdrawals, these are fully subject to tax and you may be imposed a 5% penalty.
Important Notes & Disclaimer