Are you new to Singapore and haven’t heard of the Supplementary Retirement Scheme (SRS)? Don’t miss out on the income tax benefits of the SRS!
The Singapore government introduced the Supplementary Retirement Scheme to encourage taxpayers to save for a voluntary supplementary pension. One of the benefits is the reduction of taxable income by paying a flexible annual amount into their SRS account.
Opening the SRS account reduces income tax. As this account can be used to invest in savings plans, stocks, funds, bonds, etc., it is also attractive for expats.
Income tax contributions are tax-reduced up to a certain amount each year, with the maximum contribution cap set at S$15,300 for Singaporeans and permanent residents. Foreign nationals, whether resident or not, can make an annual contribution of up to S$35,700.
Singapore uses a progressive tax system, meaning that SRS account holders can reduce their taxable income.
Example 1: Mr Singh (Employment Pass / Spass holder) with taxable income of S$200,000 and he contributed S$35,700 into his SRS Account. His annual income tax is reduced from S$21,150 to S$14,724
Example 2: Mdm Lee (PR/Singaporean) have a taxable income of S$400,000 and she contributed S$15,300 into her SRS account. Her annual income tax is reduced from S$62,150 to S$58,784
For a complete overview of income tax rates and withholding tax rates in Singapore, please read here.
Taxpayers who:
Exception:
Foreigners, with or without a residence permit, receive a one-off payment, 10 years after the first payment
Two types of tax:
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Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
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In compliance with the Personal Data Protection Act, Financial Alliance Pte Ltd (“FAPL”) seek your consent to collect and use your personal data (e.g. name, NRIC, contact numbers, mailing addresses, email addresses and photograph) for the purposes of and in accordance with FAPL’s Data Protection Policy, which can be found on FAPL’s website at https://fa.com.sg/data-protection-policy/.
根据《个人数据保护法》,鑫盟理财私人有限公司征求您的同意向您收集并使用您的个人信息。鑫盟理财将根据公司的个人数据保护政策所阐述的用途使用您的个人资料(例如姓名,证件号码,联系电话,邮寄地址,电邮地址和照片)。 该政策可在本公司网站上查寻,网址为 https://fa.com.sg/data-protection-policy/.
By submitting this form, you are deemed to have read and understood FAPL’s Personal Data Policy.
提交此表格,即表示您已阅读并理解鑫盟理财私人有限公司的个人数据政策