Calculating Withholding Tax

If a foreigner or Singapore Permanent Resident (SPR) has $300,000 in his SRS account by the retirement age of 62, for example, and decides to withdraw the whole amount, he will be taxed on half of the amount withdrawn. SRS Withdrawn $300,000 Amount Subject To Tax 50% x $300,0

If a foreigner or Singapore Permanent Resident (SPR) has $300,000 in his SRS account by the retirement age of 62, for example, and decides to withdraw the whole amount, he will be taxed on half of the amount withdrawn.

SRS Withdrawn

$300,000

Amount Subject To Tax

50% x $300,00
= $150,000

Withholding Tax At 22%*

22% x $150,000
= $33,000

Actual Amount Received

$300,000 - $33,000
= $267,000

*Effective 1 Jul 2014, the concessionary withholding tax rate of 15% will apply if the following conditions are met:

  1. Cumulative amount withdrawn by the SRS account holder in the calendar year does not exceed $200,000
  2. The SRS account holder does not have any other income besides the SRS withdrawal(s) during the calendar year when the withdrawal(s) are made.

To enjoy this concession, the SRS account holder must declare that he fulfills the two conditions above using the Form IR37B(1) (63KB).

Withholding Tax is Not the Final Tax

No. If the foreigner or SPR is a Singapore tax resident, the actual tax payable on the SRS withdrawal will be based on the progressive resident rates .

For a non-resident, the actual tax payable on the SRS withdrawal will be 15% or the progressive resident rates , whichever is higher.

Claiming Refunds on Withholding Tax

Tax withheld on the withdrawal is a tax credit that will be used to offset your actual tax liability. Any unused tax credit will be refunded to you.

In the example above, assuming the actual tax rate applicable for the SRS withdrawal is finally determined to be 15% and you have no other tax liability, the refund you will receive is calculated as follows:

SRS Withdrawn

= $300,000

Amount Subject To Tax

50% x $300,000
= $150,000

Withholding Tax At 22%

22% x $150,000
= $33,000

Actual Tax Rate Applicable: 15%

15% x $150,000
= $22,500

Amount To Be Refunded

$33,000 - $22,500
= $10,500

Please email your request for a tax return to fc@iras.gov.sg and provide details of your name, tax reference number and forwarding address.

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