mof.gov.sg SRS Supplementary Retirement Scheme Singapore : Ministry Of Finance
Organization : Ministry Of Finance
Scheme Name : Supplementary Retirement Scheme SRS
Country : Singapore
Website : https://www.mof.gov.sg/home
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MOF SR Scheme
The SRS is part of the Singapore government’s multi-pronged strategy to address the financial needs of a greying population by helping Singaporeans to save more for their old age.
Related : IRAS SWS Specialised Warehouse Scheme : www.statusin.org/40700.html
Overview
It began in 2001 and is operated by the private sector. The SRS complements the Central Provident Fund (CPF). CPF savings are meant to provide for housing and medical needs and for basic living needs after retirement.
Unlike the CPF scheme, participation in SRS is voluntary. SRS members can contribute a varying amount to SRS (subject to a cap) at their own discretion. The contributions may be used to purchase various investment instruments.
Benefits
The SRS offers attractive tax benefits. Contributions to SRS are eligible for tax relief. SRS contributions made on or after 1 Jan 2017 are subject to a cap on personal income tax relief of $80,000 per Year of Assessment from Year of Assessment 2018.
Investment returns are accumulated tax-free and only 50% of the withdrawals from SRS are taxable at retirement (referred to as a “50% tax concession”). Please refer to IRAS’ website for more information on how withdrawals will be taxed.
Latest Enhancements to the SRS
We review and enhance the SRS periodically to better meet the retirement needs of SRS members.
Some recent enhancements to the SRS include :
(i) Allowing SRS withdrawals to be made in the form of investments from 1 July 2015;
(ii)Providing a tax exemption of up to $400,000 for SRS funds deemed withdrawn upon demise, or withdrawn in full on the grounds of terminal illness; and
(iii)Increasing the SRS contribution cap.
Increase in SRS Contribution Cap
From 1 January 2016, the annual SRS contribution cap will be increased to :
(i)$15,300 for Singapore Citizens and Permanent Residents; and (ii)$35,700 for foreigners.
Frequently Asked Questions
Eligibility
1. Who is eligible to open an SRS account?
All Singaporeans, Singapore Permanent Residents (SPRs) and foreigners who
** are at least 18 years old;
** are not undischarged bankrupts; and
** are not of unsound mind.
2. Who is allowed to contribute to SRS?
If you earned any form of income (including directors’ fees) in the current year, you are allowed to contribute to SRS. With effect from 1 Oct 2008, the SRS is no longer restricted to individuals with employment income.
3. Can my employer contribute to my SRS account?
Yes. With effect from 1 Oct 2008, your employer can contribute to your SRS account on your behalf. Such contributions are fully tax deductible as staff costs to the employer.
As part of your remuneration, they are taxable in your hands and will be declared by your employer in your Form IR8A for the relevant year. Based on the information provided by the SRS operator, you will then be given a tax relief for such contributions in the subsequent year of assessment.
Contribution
1. Is there an age limit for contributions to the SRS?
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.
2. Do I need to contribute regularly to SRS?
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.