| Supplementary Retirement Scheme (SRS) Q1. Who is eligible to open a SRS account? All Singaporeans, Singapore Permanent Residents (SPRs) and foreigners who -are at least 21 years old; -are not undischarged bankrupts; and -have employed or self-employed income in the preceding year Q2. How is my SRS contribution cap determined? Your SRS contribution cap is determined by multiplying the appropriate SRS contribution rate by your income from trade, business, profession, vocation or employment in the preceding year. I can help you with the computation. Q3. How can I get my contribution cap calculated? I can help you to have your yearly contribution cap calculated. To determine your contribution cap, you need to submit details of your Ordinary and Additional wages (OW & AW) on a prescribed Employer Declaration Form completed by your employer. However, if you are a self-employed, you are required to submit the statement of accounts accompanying your Annual Income Tax Return or Notice of Assessment issued by the Comptroller of Income Tax. Q4. When can I make my first SRS contribution for the year? You may make SRS contributions after we have calculated your SRS contribution cap based on your income earned in the preceding year. Q5. How do I make a SRS contribution? You may approach any of the following banks: DBS, OCBC, UOB or OUB after you have opened the SRS account. Q6. What investment instruments can I purchase using my SRS funds? You may invest in a wide range of financial products offered by financial institutions licensed or approved by MAS. Examples of eligible instruments are shares, unit trusts, bonds and fixed deposits and insurance policies (regular premiums disallowed). You may approach the product providers for information on products that they are offering for SRS. However, direct property investments are not allowed. Q7. When can I make a withdrawal from my SRS account? You may withdraw your SRS saving anytime you wish. However, if the withdrawal is made before the statutory retirement age prevailing at the time of your first contribution, 100% of the sum withdrawn will be subject to tax.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. If you are a SPR or a Foreigner, a withholding tax of 24.5% (for Year of Assessment 2002) on the withdrawn amount will be imposed before we pay you the net amount. All withdrawal applications should be made on the prescribed SRS Withdrawal Form. Q8. When can I get a tax relief on my SRS contributions? Tax relief will be granted in the year following the year of contribution provided that you are assessed as a tax resident. For instance, you will get tax relief for contributions made in year 2001 in Year of Assessment 2002. Q9. How do I claim my SRS tax relief? There is no need for you 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 operator. To open a SRS account, you need to authorize your SRS operator to provide this information to IRAS. |