Annuity (recurring annual payments)

An annuity is a continuous yearly payment, arising from any of the following:

• Annuity policy bought from an insurance company
• Gift or inheritance
• Payment for sale of an asset or surrender of a right

When is it taxable

All annuities received in Singapore are not taxable unless they are received from the following sources:

• Partnership 
• Supplementary Retirement Scheme (SRS)
• Annuity policy bought by your employer, in place of a pension or other employment benefits which are payable to you during employment or upon retirement.

How we tax annuity

Depending on the source of your annuity, you will be taxed on:

• 3% of the total amount you paid for the annuity; or
• Full amount of annuity received if the total amount received is equal to the total amount you paid for the annuity; or
• 50% of the annuity payouts received from SRS.

How to report

You need to declare the taxable annuities received from partnerships or policies bought by your employer under 'other income' in your tax form.

For annuities received from SRS, you do not need to declare the amount in your tax form. The approved SRS operators will transmit the relevant information to us electronically.