Retirement benefits are received by employees when they have reached their retirement age.
Taxability of retirement benefits
All retirement benefits including gratuities and pensions are taxable unless they are specifically exempted under the Income Tax Act.
|Types of retirement funds/schemes
|Is it taxable?
|Retirement benefits received from government pension schemes under any written law relating to pensions in Singapore (including the Pensions Act, Singapore Armed Forces Act and Parliamentary Pensions Act)
|Retirement benefits received from CPF/designated funds
|Retirement benefits received from approved pension and provident funds before retirement
|Taxable on the total amount of retirement benefits received.
|Retirement benefits received from approved pension and provident funds upon retirement based on the statutory retirement age
|Taxable only on funds accrued from 1 Jan 1993 to date of retirement. Funds will be taxed at the time the benefits are received.
Reporting retirement benefits
|Company not participating in the Auto-Inclusion Scheme (AIS) for Employment Income
|Company participating in the AIS
|You must declare the taxable retirement benefits under 'Employment - Others' in your Income Tax Return.
|You do not need to report the retirement benefits in your Income Tax Return as your employer will submit the information to IRAS electronically.