SRS contributions

The Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage individuals to save for retirement, over and above their CPF savings. Contributions to SRS are eligible for tax relief. Investment returns are tax-free before withdrawal and only 50% of the withdrawals from SRS are taxable at retirement.

Qualifying for SRS Contribution

Singapore Citizens, Singapore Permanent Residents (SPRs) and foreigners who derive any form of income can make SRS contributions in the current year. You must be:

  1. At least 18 years of age;
  2. Not an undischarged bankrupt;
  3. Not suffering from a mental disorder; and
  4. Capable of managing yourself and your affairs.

Your employer can also contribute part of your remuneration to your SRS account on your behalf. The amount contributed is your remuneration and is hence taxable. You will be given a tax relief on the SRS contribution made by your employer on your behalf.

Please note that a personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed (including relief on SRS contributions). There will be no refund for SRS contributions made. Please evaluate whether you would benefit from tax relief on your SRS contributions, and make an informed decision.

Opening an SRS Account

SRS Accounts are managed by three SRS operators. To begin making contributions, you must first open an SRS Account with one of them.

The three SRS operators are:

  • DBS Group Holdings Ltd
  • Overseas-Chinese Banking Corporation (OCBC) Ltd
  • United Overseas Bank (UOB) Ltd

When opening an SRS Account, the SRS operator will require the following documents:

You can only have one SRS account at any point in time. It is an offence to open SRS accounts with more than one operator and there are penalties for doing so.

Please note that you will not be permitted to open a new account if you previously had an SRS account, but had closed the account after withdrawing all the monies due to the following reasons:

  • Having attained the relevant retirement age*, or
  • On medical grounds

(* The statutory retirement age that was prevailing when you made your first SRS contribution.)

You may refer to the Ministry of Finance’s website for the FAQs on participating in SRS.

Transferring an SRS Account from Existing SRS Operator to Another

You may transfer your SRS account between different SRS operators and continue to make SRS contributions. Please obtain and complete the “Transfer of Account Form” from the new SRS operator, who will then liaise with your existing operator to effect the transfer.

Note: If you have already made a withdrawal from your account after having attained the relevant retirement age* or on medical grounds, you are not allowed to make new contributions to your account both before and after the transfer.

(* The statutory retirement age that was prevailing when you made your first SRS contribution.)

Amount of SRS Contribution

Please note that a personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed (including relief on SRS contributions). There will be no refund for SRS contributions made. Please evaluate whether you would benefit from tax relief on your SRS contributions, and make an informed decision.

You and/or your employer (on your behalf) may contribute any amount to your SRS account up to the maximum SRS contribution. Contributions must be made in cash.

Yearly Maximum SRS Contribution by Singapore Citizens / SPRs

Year

Absolute Income Base*

Yearly Maximum SRS Contribution

2011 to 2015
(i.e. YAs 2012 to 2016)

$85,000
(17 months x $5,000)

$12,750
(15% of $85,000)

2016 onwards

(i.e. YA 2017 onwards)

(17 months x $6,000) = $102,000 

15% of Absolute Income Base (15% x $102,000) = $15,300 

Yearly Maximum SRS Contribution by Foreigners

Year

Absolute Income Base*

Yearly Maximum SRS Contribution

2011 to 2015
(i.e. YAs 2012 to 2016)

$85,000
(17 months x $5,000)

$29,750
(35% of $85,000)

2016 onwards

(i.e. YA 2017 onwards)

(17 months x $6,000) = $102,000

35% of Absolute Income base (35% x $102,000) = $35,700 

*The Absolute Income Base is calculated on 17 months of the CPF monthly salary ceiling.

SRS Contribution by Foreigners

You are required by the SRS operator to complete the Declaration Form for SRS (77KB) and declare your foreigner status. This allows the operator to calculate your maximum SRS contribution.

If you become a Singapore Citizen or Singapore Permanent Resident during the year, please update the SRS operator as your maximum contribution amount will have to be recalculated even if you have already made contributions for that year. The SRS operator will re-compute your SRS contribution cap for the year on a pro-rata basis.

Penalties may be imposed for excess contributions if a wrongful declaration has been made to the SRS operator. For example, if, at the time of contribution, you are already an SPR, you cannot declare that you are a foreigner and seek to make an SRS contribution at the rate of 35%.

Making SRS Contribution

You and/or your employer (on your behalf) can contribute at any time, and as often as you like, subject to the maximum SRS contribution for the year. All contributions must be made by 31 Dec of the year or as your SRS operator requires, to be eligible for SRS tax relief.

Please note that a personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed (including relief on SRS contributions). There will be no refund for SRS contributions made. Please evaluate whether you would benefit from tax relief on your SRS contributions, and make an informed decision.

You and/or your employer can continue to make SRS contributions as long as you have not made any withdrawals from your SRS account:

  1. At or after reaching the statutory retirement age that was applicable when you made your first SRS contribution;
  2. On medical grounds.

You may refer to the Ministry of Finance’s website for the FAQs on SRS contributions.

  • Can I obtain a refund of my SRS contributions made in year 2018, if for YA 2019, the total amount of personal reliefs which I can claim is more than $80,000, even without any tax relief on my SRS contributions?

    There will be no refund for SRS contributions made. As such, please take note of the overall personal income tax relief cap and evaluate whether you would benefit from the tax relief on your SRS contributions, and make an informed decision.

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