Question 1

As savings withdrawn from SRS are subject to tax, would I not be paying a lot of tax when I retire?

Accepted Answer

No, only 50% of your withdrawals are subject to tax. Moreover, you are allowed to spread out your withdrawals over a period of time. With lower or nominal income at retirement, you may end up paying little or no income tax.

Question 2

I am a foreigner. What happens to my SRS deposits when I leave Singapore?

Accepted Answer

Any cash proceeds from the maturity of your SRS investments or deposits will be retained in your SRS account. You may withdraw your SRS monies at any time. You may also continue to operate your SRS account after leaving Singapore. As for the taxability of SRS withdrawals, all withdrawals are generally taxable. In addition, all withdrawals made before the statutory retirement age that was prevailing at the time of your first SRS contribution attract a 5% penalty. As a concession, the 5% penalty is waived for foreigners who withdraw their SRS monies in one lump sum after maintaining their SRS accounts for at least 10 years. The SRS operators will be withholding tax (and the 5% penalty if applicable) on withdrawals made by foreigners and Singapore Permanent Residents (SPRs).

Question 3

I am a foreigner who no longer works and lives in Singapore and I make an SRS withdrawal. How will I be taxed?

Accepted Answer

A foreigner will be taxed as a non-resident in this instance. He will generally be taxed at 15% or the local resident rate, whichever is higher. If the withdrawal is made after the statutory retirement age or more than 10 years after the date of the first contribution, only 50% of the SRS withdrawal will be subject to tax.

Question 4

What is the maximum age to start the withdrawal of SRS money?

Accepted Answer

SRS member may withdraw their SRS savings anytime, albeit early withdrawals are fully subject to tax and attract a 5% penalty. An SRS member may make his first penalty-free withdrawals from the SRS account over 10 years from the date of his statutory retirement age that was prevailing at the time of his first SRS contribution. If an SRS member (i) passes away before completing his SRS withdrawals or (ii) made a full withdrawal on the grounds of terminal illness, he would not be able to enjoy the full benefit from spreading out his SRS withdrawals over a 10-year period. Hence, a tax exemption of up to $400,000 would be granted for SRS funds withdrawn in full on the grounds of terminal illness or deemed withdrawn upon an SRS member’s demise.

Question 5

Am I allowed to reinstate the amount prematurely withdrawn and have the penalty refunded to my account?

Accepted Answer

No. You are not allowed to reinstate the amount withdrawn. Accordingly, the penalty imposed for the premature withdrawal will not be refunded.

Question 6

As a foreigner or PR, with a balance in my account deemed withdrawn, if I make an actual withdrawal, will it be subject to withholding tax?

Accepted Answer

Yes. Your withdrawal will be subject to withholding tax. However, if you have already paid tax on the deemed withdrawal in the prior year and there is no further tax outstanding, IRAS will refund the amount of tax withheld. [1] For an SRS member who withdraws his SRS savings: (i) at or after the statutory retirement age that was prevailing when he made his first SRS contribution or (ii) on medical grounds, the 10-year withdrawal period will start from the date of his first such withdrawal.

Question 7

Can a foreigner opt to leave an SRS account alone to take advantage of the 50% tax concession and not be subjected to the withdrawal penalty?

Accepted Answer

Yes, she may, provided that she withdraws all funds in her SRS account at least 10 years after the date of her first SRS contribution. In addition, she should also have been a foreigner for a continuous period of at least 10 years preceding the date of withdrawal.

Question 8

Can I spread my withdrawals over a period of time so as to enjoy the 50% tax concession?

Accepted Answer

Yes, if you withdraw your SRS savings at or after the statutory retirement age that was prevailing when you made your first SRS contribution or on medical grounds. The maximum period over which you can spread your withdrawals is 10 years. The 10-year period will start from the date of your first such withdrawal. The 10-year period does not apply to investments in life annuities. So long as you continue to receive your annuity streams in perpetuity, the 50% tax concession will apply. While you may make partial withdrawals in the form of investment for eligible withdrawals, an SRS operator would not be able to approve your application to withdraw, if the investment to be deducted cannot be separately valued or identified (e.g. where the SRS investment that the SRS member wishes to withdraw from his SRS account is an inseparable part of an insurance policy).

Question 9

Can I withdraw my SRS money before the age of 62?

Accepted Answer

The age that matters here is not a fixed 62 for everyone. It is the statutory retirement age that was prevailing at the time you made your first SRS contribution, so the relevant age depends on when you joined the scheme. SRS members may withdraw their SRS savings anytime, albeit early withdrawals are fully subject to tax and attract a 5% penalty. To encourage individuals to withdraw their SRS savings at or after that age, the Government grants a 50% tax concession for such withdrawals (i.e. only 50% of the withdrawal is subject to tax). Such withdrawals also do not attract a 5% penalty. We appreciate that some individuals may wish to retire earlier, but we would still like to encourage them to keep their savings for their old age. Individuals who are physically or mentally handicapped (for example, bedridden) may withdraw their SRS savings at any time, without penalty and with the 50% tax concession, regardless of their age. From YA 2016, up to $400,000 of an amount of a full withdrawal made by an SRS member on the grounds of terminal illness would be exempt from tax. 50% of any remaining amount of full withdrawal would then be subject to tax.

Question 10

Do I have to withdraw all my SRS funds at the end of the ten-year withdrawal period?

Accepted Answer

No. However, 50% of the balance remaining in your SRS account at the end of the withdrawal period will be subject to income tax.

Question 11

How can I make a withdrawal from my SRS account?

Accepted Answer

You may approach your SRS operator to submit an application for making withdrawals.

Question 12

How exactly is the withdrawal period determined at retirement?

Accepted Answer

The withdrawal period starts when you make your first withdrawal at or after the statutory retirement age that was prevailing when you made your first SRS contribution. It will end 10 years from this date. However, the 10-year period does not apply to investments in life annuities. So long as you continue to receive your annuity streams in perpetuity, the 50% tax concession will apply.

Question 13

How much can I withdraw from the SRS account?

Accepted Answer

You may withdraw any amount of SRS savings you desire. There is no specified minimum or maximum sum of withdrawal.

Question 14

How will my withdrawals be taxed?

Accepted Answer

Withdrawals from SRS accounts are subject to tax in the Year of Assessment following the year of withdrawal. For example, if you withdraw $6,000 from your SRS account in 2009, either 50% or 100% of the withdrawal amount, depending on the type of withdrawal (see below), will be regarded as part of your income in 2009 and subject to tax for Year of Assessment 2010. 50% of the sum withdrawn will taxed for the following types of withdrawal: a. withdrawal on or after the statutory retirement age prevailing at the time of your first contribution (prescribed retirement age); b. withdrawal on medical grounds; c. withdrawal on death, and; d. withdrawal by a foreigner who has maintained his SRS account for at least 10 years from the date of his first contribution. 100% of the sum withdrawn will be deemed as your income and taxed in all other situations. If you are a non-Singaporean who no longer works and lives in Singapore, you will be taxed as a non-resident when you withdraw the fund from your SRS account. From YA 2016, up to $400,000 of an amount of a deemed withdrawal upon the death of an SRS member or a full withdrawal made by an SRS member on the grounds of terminal illness, would be exempt from tax. 50% of any remaining amount of such a deemed withdrawal or full withdrawal would then be subject to tax.

Question 15

If I am a foreigner and start contributing to SRS at the age of 55, am I allowed to withdraw my SRS contribution without penalties, at the age of 62?

Accepted Answer

Any SRS member, regardless whether he is a foreigner or not, may withdraw his SRS without penalties at the age of 62, if that is the statutory retirement age prevailing at the time of his first contribution.

Question 16

If I cancel my SPR status before I reach the statutory retirement age, when can I withdraw my SRS funds without penalty?

Accepted Answer

Currently all SRS members, regardless of their nationalities, can withdraw their SRS monies penalty-free if they: a) have reached the statutory retirement age prevailing at their first contribution; or b) are physically or mentally incapacitated from ever continuing in any employment, are found to be mentally disordered and incapable of managing himself or his affairs, or are suffering from a terminal illness or disease. Only 50% of the withdrawal is subject to tax under the above circumstances. From YA 2016, up to $400,000 of an amount of full withdrawal made by an SRS member on the grounds of terminal illness would be exempt from tax. 50% of any remaining amount of full withdrawal would then be subject to tax. Subject to the conditions below, after you have cancelled your PR status (and have not applied for Singapore citizenship), you would qualify for an additional concession (penalty free withdrawal): i) you are neither a Singapore Citizen nor a SPR for a continuous period of 10 years preceding the date of withdrawal; ii) you have maintained your SRS account for a period of not less than 10 years from the date of your first contribution to your SRS account; and iii) you make a one-time full withdrawal from your SRS account. Similarly, only 50% of the withdrawal is subject to tax.

Question 17

What are the restrictions on the types of withdrawals allowed to be made in the form of investments? What is the rationale for these restrictions?

Accepted Answer

Withdrawals in the form of investments are not allowed in the following conditions: a. Withdrawals on the grounds of bankruptcy b. Withdrawals before the statutory retirement age c. Withdrawals of contributions in excess of the SRS contribution cap Withdrawals on the grounds of bankruptcy should be made in cash in view of the need for immediate cash to make debt repayments. As we wish to encourage members to keep their savings for their old age, the flexibility to make withdrawals in the form of investments would not be extended to withdrawals made before the statutory retirement age. Early withdrawals would only be allowed in the form of cash, are fully subject to tax, and attract a 5% penalty. Withdrawals of contributions in excess of the SRS contribution cap would be made as if the member has not contributed, hence such withdrawals would also be made in cash.

Question 18

What is the rationale for allowing withdrawal of investment products?

Accepted Answer

This is to allow SRS members to hold their SRS investments outside of the SRS scheme without having to incur the transaction costs to first liquidate their SRS investments (so as to withdraw cash from their SRS accounts) and thereafter re-purchase the same investments outside of the SRS scheme.

Question 19

When can I make a withdrawal from my SRS account?

Accepted Answer

Any time. However if you make a withdrawal before the statutory retirement age prevailing at the time of your first contribution, 100% of the sum withdrawn will be subject to tax. A 5% penalty for premature withdrawal will also be imposed. The penalty applies to all withdrawals except those made under exceptional circumstances: a. Death; b. medical grounds; c. bankruptcy, and; d. the full withdrawal of the SRS balance by a foreigner provided that the following conditions are met: i) you are neither a Singapore Citizen nor a SPR on the date of withdrawal and for a continuous period of 10 years preceding the date of withdrawal; ii) you have maintained your SRS account for a period of not less than 10 years from the date of your first contribution to your SRS account, and; iii) you make a one-time full withdrawal from your SRS account.

Question 20

Why is tax exemption granted to SRS funds (i) deemed withdrawn upon death or (ii) withdrawn in full on the grounds of terminal illness?

Accepted Answer

From year of assessment 2016, a specified amount of SRS funds (i) deemed withdrawn upon death, or (ii) withdrawn in full on the grounds of terminal illness, would be exempt from tax, to ensure that SRS members are not unduly disadvantaged due to death or terminal illness. Currently, an SRS member can withdraw up to $40,000 per year [1] from his SRS account tax-free on or after reaching the prescribed retirement age [2], assuming that he has no other taxable income. Over the maximum withdrawal period of 10 years, he can withdraw up to $400,000 tax-free. However, if an SRS member passes away before completing his SRS withdrawals or made a full withdrawal on the grounds of terminal illness, he would not be able to enjoy the full benefit from spreading out his SRS withdrawals over a ten-year period. Hence, a tax exemption of up to $400,000 would be granted for SRS funds deemed withdrawn upon an SRS members demise or a withdrawn in full on the grounds of terminal illness. [1] While 50% of the withdrawal of $40,000 (i.e. $20,000) is subject to tax, the tax rate on the first $20,000 of chargeable income is 0% from YA 2003. [2] The prescribed retirement age is the statutory retirement age prevailing at the time of your first SRS contribution.

Question 21

Will there be any fees and charges involved in withdrawing an investment from my SRS account?

Accepted Answer

Please check with your SRS operator for the fees and charges involved, if any. You will need to have sufficient funds in your SRS account for a deduction of such fees or charges. You may liquidate part of your SRS investments to pay for a deduction of such fees or charges.

Question 22

Would the authorities consider waiving the tax on withdrawal completely and raising penalties for early withdrawal instead?

Accepted Answer

People who do not pay tax today (i.e. lower income earners) are unlikely to pay tax on their SRS withdrawals. This is because of the significant effective tax exemption on much of their SRS withdrawals, as elaborated below. With effect from Year of Assessment 2003, all taxpayers are not subject to tax on their first $20,000 of income (zero tax rate income band). Retirees will also enjoy a further 50% tax concession on their SRS withdrawals, that is, only 50% of SRS withdrawal is subject to tax. The result is that a retiree is taxed only on the amount of SRS withdrawals exceeding $40,000, assuming that he has no other sources of income. To illustrate, consider a retiree making an SRS withdrawal of $50,000. As a result of the 50% tax concession, only $25,000 is subject to tax. However due to the zero tax rate for the first $20,000 of income, the retiree is actually subject to tax on only $5,000 of SRS withdrawal. Non-taxpayers should therefore not be deterred from making SRS contributions by the tax on withdrawals. Over a 10-year withdrawal period, a retiree can withdraw up to $400,000 from SRS tax free (based on current marginal tax rates).

Question 23

Are dividends received from unit trusts purchased with SRS funds taxable?

Accepted Answer

One-tier exempt dividends and distributions from unit trusts purchased with SRS funds and deposited into the SRS account are not taxed when they are credited into the SRS account. However, tax will be imposed on the amount subsequently withdrawn from the SRS account.

Question 24

Are ETFs (Exchange Traded Funds) which are traded in Singapore Stock Exchange eligible SRS investments?

Accepted Answer

The Government does not have any restriction on the use of SRS money for the purchase of Exchange Traded Funds (ETFs) listed on the Singapore Stock Exchange. You may wish to make some enquiries with your SRS operator on the possibility of using your SRS funds to purchase ETFs.

Question 25

Can a customer purchase a single premium endowment policy that matures at age 65 under SRS? What happens to the cash proceeds upon maturity?

Accepted Answer

An SRS account holder may purchase a single premium endowment policy that matures when he/she reaches the age of 65. The cash proceeds upon the maturity of any investment (including a single premium endowment policy) would generally have to be returned to the SRS account.

Question 26

Can I do a direct purchase of equities on the Singapore Stock Exchange or any other exchange in the world?

Accepted Answer

The Government does not prohibit a person from purchasing shares listed in Singapore or any other countries. The range of investment products on offer generally depends on product providers; we suggest you consult the financial institution which you are interested in purchasing products from if you wish to purchase a share listed on a foreign exchange. Currently, overseas investments may not be available to members.

Question 27

Can I surrender my annuity policy after my SRS account is deemed closed?

Accepted Answer

An SRS member is not allowed to surrender the policy after the SRS account has been closed or deemed closed.

Question 28

Can I use the SRS funds to exercise the stock options issued by my company?

Accepted Answer

The Government does not restrict the exercise of stock options within SRS, provided that the following conditions are met: i) The monies used to exercise the stock options must come from the SRS account; ii) The shares from the exercise of the stock options must be retained within the SRS account, and; iii) The proceeds from the sale of the shares (from the exercise of the stock options) must be returned to the SRS account. The conditions listed above are also applicable for most other investments. We advise that you approach your SRS operator for more information.

Question 29

Does the use of SRS funds for investment constitute a withdrawal from the account?

Accepted Answer

No. The use of SRS funds for investment does not constitute a withdrawal from the account.

Question 30

How long will it take before I can utilize my money in the SRS account for investment after I have contributed it to my SRS account?

Accepted Answer

You should generally be able to utilise your SRS monies for investment once your SRS operator has confirmed the receipt of the monies (for example after it has cleared your cheque) and credited the monies to your SRS account. You may wish to check with your SRS operator on the actual time lag between making a contribution and being able to make an SRS investment.

Question 31

Is there a guaranteed rate of return on the investments I make with my SRS funds?

Accepted Answer

No. There is no guaranteed rate of return on the investments.

Question 32

Is there any interest paid on the balance in the SRS account, and if yes, what is the interest rate?

Accepted Answer

The interest rate on funds in SRS accounts are set by the market. Each SRS operator decides on the interest, if any that it pays on funds in the SRS account. You may wish to approach the SRS operators for further information as they would be better placed to advise you.

Question 33

Must all proceeds from the sale of my SRS investment instruments be returned to my SRS account?

Accepted Answer

Yes. All proceeds from the sale of SRS investment instruments must be returned to the SRS account.

Question 34

Must the investment mature when one reaches the prescribed retirement age?

Accepted Answer

The investment need not mature at the prescribed retirement age. An investor may purchase a single-premium endowment plan maturing at age 62, another maturing at age 63, etc. If the investment is a life annuity, you will be taxed on 50% of the total annuity payouts each year, for as long as the annuity payouts are received. If the investment is not a life annuity and matures beyond the ten-year withdrawal period, it will be valued and taxed at 50% tax concession at the end of the ten-year period.

Question 35

What happens if the SRS operator or the financial institution where I make my SRS investments goes bankrupt?

Accepted Answer

Savings and investment products, including SRS, placed with financial institutions are not guaranteed against losses in the event of the financial institution's bankruptcy. When placing their monies with any financial institution, investors should assess and monitor for themselves the financial soundness of that institution.

Question 36

What investment instruments can I purchase using my SRS funds?

Accepted Answer

You may invest in a wide range of financial assets, including those offered by financial institutions (product providers) other than your SRS operator. Please approach your product providers for information on the products they are offering for SRS as the decision on whether to offer a product to SRS monies generally lies with them [1]. However, direct property investments are not allowed. As for life insurance products, the following conditions shall apply: • Only single premium products are allowed (including recurrent single premium products, encompassing both annuity and non-annuity plans). • Life cover (including total and permanent disability benefits) will be capped at 3 times the single premium. • Plans can allow for a contribution continuation feature/benefit upon disability. • Other types of life insurance e.g. critical illness, health and long-term care are excluded. • Trust nomination is not allowed for life insurance products purchased using SRS funds. You should note that investment choices are made on a caveat emptor basis. [1] Currently, overseas investments may not be available to members.

Question 37

What investment products can I purchase within SRS? Is there a list of approved SRS investment products?

Accepted Answer

The Government has few restrictions on SRS investments with the exception of direct property investments and certain insurance products. You should be able to make a wide variety of investments, including shares, insurance, bonds, unit trusts and fixed deposits [1]. We currently do not maintain a list of financial institutions offering products under SRS as this is a commercial decision on the part of the product providers and SRS operators. We suggest you seek advice from the financial institutions which you are interested in purchasing products from. [1] Please approach your product providers for information on the products they are offering for SRS as the decision on whether to offer a product to SRS monies generally lies with them.

Question 38

When can I sell the investments bought using my SRS funds?

Accepted Answer

You can sell your investments anytime.

Question 39

Why is it that I cannot use my SRS funds to purchase the investment product I want? The range of investment products in SRS is limited.

Accepted Answer

The decision on whether to offer a product to SRS monies generally lies with product providers. The Government prescribes few restrictions on the range of possible SRS investments, other than those on certain insurance products and property investments. You may wish to take up the matter with your product provider.

Question 40

Will the monthly payouts from an annuity bought with SRS funds be paid into my SRS account, or can they be paid into my bank account directly?

Accepted Answer

If your SRS account is still open, your monthly annuity payouts must be returned to the SRS account before you withdraw them. If your SRS account is closed, your monthly annuity payouts may be paid into your bank account directly. After reaching the prevailing statutory retirement age at the point of first SRS contribution, an SRS member is taxed on only 50% of the total annuity payouts each year, perpetually.

Question 41

If I have made a withdrawal from my SRS account, can I still make SRS contributions?

Accepted Answer

If you withdraw funds from your SRS account before retirement, you can still continue to contribute to SRS after the withdrawal. However, you may no longer contribute to SRS if you start withdrawing from your SRS account: (i) at or after the statutory retirement age that was prevailing when you made your first SRS contribution, or; (ii) on medical grounds.

Question 42

Under what situations am I not be allowed to contribute to my SRS account?

Accepted Answer

You may no longer contribute to SRS after you start withdrawing from your SRS account: (i) at or after the prevailing statutory retirement age that was prevailing when you made your first SRS contribution, or; (ii) on medical grounds.

Question 43

Can I use cpf fund to invest in SRS scheme?

Accepted Answer

No. All SRS contributions must be made in cash.

Question 44

After the SRS operator has computed my SRS contribution cap for the year, is it mandatory for me to make a contribution up to the cap set?

Accepted Answer

You can contribute any amount up to your SRS contribution cap.

Question 45

Can an SRS operator stop accepting an SRS contribution before 31 December?

Accepted Answer

The cut-off date for SRS contribution (at any SRS operator) is a commercial decision. SRS members should ask their SRS operator about the cut-off date for SRS contributions.

Question 46

Can a retiree who is under the statutory retirement age make SRS contributions with the money that he has withdrawn from his CPF account?

Accepted Answer

Anyone can make SRS contributions at any age, unless they have started withdrawing from the SRS: i) at or after the statutory retirement age that was prevailing when you made your first SRS contribution, or; ii) on medical grounds.

Question 47

Can I make SRS contributions in the form of investments (i.e. transfer investments into my SRS account)?

Accepted Answer

No. All SRS contributions must be made in cash.

Question 48

Do I need to contribute regularly to SRS?

Accepted Answer

No. You may contribute to SRS at any time and as often as you wish on or before 31 December each year* but your total annual contributions cannot exceed the SRS contribution cap. (* Only applicable if you are still able to contribute to the SRS.)

Question 49

If a person is a non-PR in the current year but is a PR in the next year, what will his SRS contribution cap be in the next year?

Accepted Answer

If a person is a non-PR in 2001 but is a PR in 2002, his SRS contribution cap in 2002 should be computed at the rate of 15%, which is the rate applicable to a PR.

Question 50

Is my SRS contribution cap as a foreigner still valid if I obtain Singapore Permanent Resident (SPR) status in the later part of the year?

Accepted Answer

No, a pro-rated contribution cap applies. You should contact the SRS operator to have your contribution cap recalculated.

Question 51

Is there an age limit for contributions to the SRS?

Accepted Answer

With effect from 1 October 2008, there will no longer be an age ceiling for contributions to the SRS. You will be able to contribute to the SRS up to any age, until the point where you make the first withdrawal from the SRS: (i) at or after the prevailing statutory retirement age that was prevailing when you made your first SRS contribution, or; (ii) on medical grounds. The date on which SRS participants withdraw their SRS savings is also the date new contributions will stop. Otherwise, there will be ''round-tripping'' simply for the purpose of gaining the tax benefits without subjecting the contributions to the investment risks which justify the 50% tax concession on sums withdrawn.

Question 52

Some employees have payments made to them via cheques from the company. Are they able to deposit these cheques into their SRS accounts?

Accepted Answer

Yes, employees may deposit their pay cheques into their SRS account, subject to the SRS contribution cap.

Question 53

What documents do I need to submit to the SRS operator when I wish to make SRS contributions?

Accepted Answer

If you are a Singaporean Citizen or Singapore Permanent Resident, no documents are needed. If you are a foreigner, you are required to give a written declaration of your foreign status for the calculation of your SRS contribution cap. You must make such a declaration on an annual basis for the SRS Operator to calculate your SRS contribution cap.

Question 54

What is the amount I can contribute to SRS? Is there a limit, and if so, how is this limit determined?

Accepted Answer

You may contribute any amount to your SRS account up to your SRS contribution cap. Your SRS contribution cap is determined by multiplying the appropriate SRS contribution rate by an absolute income base. SRS contribution rate The SRS contribution rate for Singaporeans and Singapore Permanent Residents (SPRs) is 15% while the SRS contribution rate for foreigners is 35% in view of the fact that they do not enjoy tax relief from CPF contributions. If you are a foreigner, you are required to give a written declaration of your foreign status for the calculation of your SRS contribution cap. You must make such a declaration on an annual basis for the SRS operator to calculate your SRS contribution cap. Income base From 1 Jan 2016, the absolute income base is $102,000. Contribution cap This works out to a contribution cap of $15,300 per annum for Singaporeans and SPRs, and $35,700 for foreigners.

Question 55

Why is there a cap on SRS contribution?

Accepted Answer

SRS is meant to help individuals to save part of their income for their retirement, on top of their CPF contributions, and should not become a tax shelter for the asset-rich or high-income individuals. There is hence a cap on the SRS contributions. The 15% cap for locals contributions was decided after a public consultation in the early part of year 2000. The absolute income base is similar to that for CPF contributions (i.e. capped at $85,000 per annum from 1 January 2011, to be raised to $102,000 per annum from 1 January 2016).

Question 56

I am interested in joining the SRS scheme. If I contribute for 6 years and then cease employment in Singapore, what is the status of my SRS account?

Accepted Answer

There is no change to your SRS account. Your funds will remain in the account for you to withdraw them later.

Question 57

Can I transfer my SRS account from one SRS Operator to another?

Accepted Answer

Yes. You may transfer your SRS account between different SRS Operators. If you had already made a withdrawal from your account having attained the relevant retirement age* or on medical grounds, you will not be permitted to make new contributions to your account after the transfer. (* The statutory retirement age that was prevailing when you made your first SRS contribution.)

Question 58

How do I participate in SRS?

Accepted Answer

You must first open an SRS account. You can open an SRS account at participating branches of any of the 3 SRS Operators: - Development Bank of Singapore (DBS) Ltd - Overseas-Chinese Banking Corporation (OCBC) Ltd - United Overseas Bank (UOB) Ltd

Question 59

Can i use cpf fund to invest in SRS scheme?

Accepted Answer

No. All SRS contributions must be made in cash.

Question 60

Can I have more than one SRS account?

Accepted Answer

No. You may not have more than one SRS account at any point in time. Do note that if you previously had an SRS account, but had withdrawn all the monies having attained the relevant retirement age* or on medical grounds and then closed it, you will also not be permitted to open a new account. (* The statutory retirement age that was prevailing when you made your first SRS contribution.)

Question 61

If I have lost my SPR status, am I still entitled to participate in SRS scheme, and withdraw the money after retirement?

Accepted Answer

If you lose your SPR status, you are still eligible for participation in the SRS scheme. You may also decide to make SRS withdrawals at a later stage. However, as a foreigner, you would qualify for an additional concession (penalty-free withdrawal). This concession is available to foreigners who withdraw their SRS monies entirely in one withdrawal transaction. The conditions for this concession are as follows: i) you have been a non-Singaporean for a continuous period of 10 years preceding the date of withdrawal, and; ii) you have maintained your SRS account for a period of not less than 10 years from the date of your first contribution to your SRS account. Under the above conditions, only 50% of the lump-sum withdrawal is taxable.

Question 62

Will I be charged for operating an SRS account?

Accepted Answer

Each SRS Operator may levy charges according to its own schedule of charges. The charges will be deducted from your SRS account.

Question 63

How do I make a claim for the tax relief that I am entitled to because of my SRS contributions?

Accepted Answer

You do not need to make a claim in your annual income tax return. IRAS will grant the tax relief to you automatically, based on information provided by the SRS operators. To open an SRS account, you will need to authorise your SRS operator to provide this information to IRAS.

Question 64

I am a foreigner leaving the country in the middle of the year. How do I claim SRS tax relief when seeking tax clearance before leaving the country?

Accepted Answer

You should obtain a statement of account specifically for the purpose of tax clearance from your SRS Operator. The IRAS will grant you the tax relief when you present such a statement.

Find out the answers for most frequently asked questions (FAQs) about SRS

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Find out the answers for most frequently asked questions (FAQs) about SRS

Find out the answers for most frequently asked questions (FAQs) about SRS

As savings withdrawn from SRS are subject to tax, would I not be paying a lot of tax when I retire?

I am a foreigner. What happens to my SRS deposits when I leave Singapore?

I am a foreigner who no longer works and lives in Singapore and I make an SRS withdrawal. How will I be taxed?

What is the maximum age to start the withdrawal of SRS money?

Am I allowed to reinstate the amount prematurely withdrawn and have the penalty refunded to my account?

As a foreigner or PR, with a balance in my account deemed withdrawn, if I make an actual withdrawal, will it be subject to withholding tax?

Can a foreigner opt to leave an SRS account alone to take advantage of the 50% tax concession and not be subjected to the withdrawal penalty?

Can I make SRS withdrawals in the form of investments (i.e. transfer investments out of SRS account), and if so, how can I make such a withdrawal?

Can I spread my withdrawals over a period of time so as to enjoy the 50% tax concession?

Can I withdraw my SRS money before the age of 62?

Do I have to withdraw all my SRS funds at the end of the ten-year withdrawal period?

How can I make a withdrawal from my SRS account?

How exactly is the withdrawal period determined at retirement?

How is the specified amount of a relevant withdrawal that is exempt from tax computed?

How much can I withdraw from the SRS account?

How will my withdrawals be taxed?

If I am a foreigner and start contributing to SRS at the age of 55, am I allowed to withdraw my SRS contribution without penalties, at the age of 62?

If I cancel my SPR status before I reach the statutory retirement age, when can I withdraw my SRS funds without penalty?

What are the restrictions on the types of withdrawals allowed to be made in the form of investments? What is the rationale for these restrictions?

What is the rationale for allowing withdrawal of investment products?

When can I make a withdrawal from my SRS account?

Why is tax exemption granted to SRS funds (i) deemed withdrawn upon death or (ii) withdrawn in full on the grounds of terminal illness?

Will there be any fees and charges involved in withdrawing an investment from my SRS account?

Will the SRS operator deduct any tax on my SRS withdrawals? How do I calculate the tax to be paid?

Would the authorities consider waiving the tax on withdrawal completely and raising penalties for early withdrawal instead?

Find out the answers for most frequently asked questions (FAQs) about SRS

As savings withdrawn from SRS are subject to tax, would I not be paying a lot of tax when I retire?

I am a foreigner. What happens to my SRS deposits when I leave Singapore?

I am a foreigner who no longer works and lives in Singapore and I make an SRS withdrawal. How will I be taxed?

What is the maximum age to start the withdrawal of SRS money?

Am I allowed to reinstate the amount prematurely withdrawn and have the penalty refunded to my account?

As a foreigner or PR, with a balance in my account deemed withdrawn, if I make an actual withdrawal, will it be subject to withholding tax?

Can a foreigner opt to leave an SRS account alone to take advantage of the 50% tax concession and not be subjected to the withdrawal penalty?

Can I make SRS withdrawals in the form of investments (i.e. transfer investments out of SRS account), and if so, how can I make such a withdrawal?

Can I spread my withdrawals over a period of time so as to enjoy the 50% tax concession?

Can I withdraw my SRS money before the age of 62?

Do I have to withdraw all my SRS funds at the end of the ten-year withdrawal period?

How can I make a withdrawal from my SRS account?

How exactly is the withdrawal period determined at retirement?

How is the specified amount of a relevant withdrawal that is exempt from tax computed?

How much can I withdraw from the SRS account?

How will my withdrawals be taxed?

If I am a foreigner and start contributing to SRS at the age of 55, am I allowed to withdraw my SRS contribution without penalties, at the age of 62?

If I cancel my SPR status before I reach the statutory retirement age, when can I withdraw my SRS funds without penalty?

What are the restrictions on the types of withdrawals allowed to be made in the form of investments? What is the rationale for these restrictions?

What is the rationale for allowing withdrawal of investment products?

When can I make a withdrawal from my SRS account?

Why is tax exemption granted to SRS funds (i) deemed withdrawn upon death or (ii) withdrawn in full on the grounds of terminal illness?

Will there be any fees and charges involved in withdrawing an investment from my SRS account?

Will the SRS operator deduct any tax on my SRS withdrawals? How do I calculate the tax to be paid?

Would the authorities consider waiving the tax on withdrawal completely and raising penalties for early withdrawal instead?