Retirement benefits are received by employees when they have reached their retirement age.
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Taxability of retirement benefits
All retirement benefits including gratuities and pensions are taxable unless they are specifically exempted under the Income Tax Act.
|S/N||Types of retirement funds/schemes||Is it taxable?|
|1||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)||Not taxable|
|2||Retirement benefits received from CPF/designated funds||Not taxable|
|3||Retirement benefits received from approved pension and provident funds before retirement||Taxable on the total amount of retirement benefits received.|
|4||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.|