Annuity (Recurring Annual Payments)

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

  1. Annuity policy bought from an insurance company;
  2. Gift or inheritance; or
  3. Payment for sale of an asset or surrender of a right.

Taxable Annuities and How They are Taxed

All annuities received in Singapore are not taxable (for example, CPF LIFE Scheme payouts) unless they are received from the following sources:

S/NSourceHow the Annuity is Taxed Each Year
1From the carrying on of a trade, business or profession, or through a partnership in Singapore-     3% of the total amount you paid for the annuity; or
-      If the total annuity payouts you have received is equal to the amount you paid for the annuity, any further amount of annuity payout received is taxed in full.
2Supplementary Retirement Scheme (SRS)100% or 50% are subjected to tax upon withdrawal, depending on the circumstances. To find out more, please refer to the Tax on SRS withdrawal.
3Annuity policy bought by your employer, in place of a pension or other employment benefits which are payable to you during employment or upon retirementFull amount of payout received 

Reporting Annuities

You must 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.