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.

Opening an SRS account

Who is eligible to open an SRS account

Singapore Citizens, Singapore Permanent Residents (SPRs) and foreigners who derive any form of income may 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.
You can only have 1 SRS account at any point in time. It is an offence and there are penalties to open SRS accounts with more than 1 operator.

How to open an SRS account

SRS accounts are managed by 3 bank operators:

You may approach the banks listed above to open an SRS account and start to contribute.

Documents required for opening an SRS account:

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

  • Having attained the prescribed 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.

    Changing of SRS bank operator

    You may change the SRS bank operator of your SRS account by obtaining the “Transfer of Account Form” from the new SRS operator, who will then liaise with your existing operator to effect the transfer.

    SRS contributions and tax relief

    All SRS contributions must be made by 31 Dec of the year or as your SRS operator requires, to be eligible for SRS tax relief in the following Year of Assessment. However, you are advised to check with your SRS bank operator about the cut-off date for SRS contributions.

    SRS contribution and tax relief

    Please note that for each Year of Assessment, 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.

    Making SRS contributions

    You and/or your employer (on your behalf) may contribute at any time, and as often as you like, subject to the maximum SRS contribution for the year. Contributions must be made in cash.

    However, SRS contributions cannot be made if you start withdrawing from your SRS account:

    1. at or after the statutory retirement age that was prevailing when you made your first SRS contribution; or
    2. on medical grounds.
    Contributions made by your employer to your SRS account on your behalf constitutes your remuneration. Such contributions are taxable and must be declared by your employer in your Form IR8A for the relevant Year of Assessment and you will be given a tax relief for such contributions.

    Yearly maximum SRS contributions

    Singapore Citizens/Singapore Permanent Residents Foreigners
    $15,300 $35,700

    For foreigners: Annual declaration form required by bank operator 

    You are required by the SRS bank operator to complete the Declaration Form for SRS (DOC, 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 bank operator as your maximum contribution amount will have to be recalculated even if you have already made contributions for that year. The SRS bank 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 bank operator. For example, if, at the time of contribution, you are already a Singapore Permanent Resident, you cannot declare that you are a foreigner.

    If you require more information on SRS, you may refer to the Ministry of Finance’s website for the FAQs on SRS contributions.

    Qualifying for SRS tax relief

    You will be allowed SRS tax relief in the Year of Assessment following the year of contribution, provided you are a tax resident for that Year of Assessment. However, a personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed (including relief on SRS contributions). 

    You will not be allowed SRS tax relief if: 

    1. Your SRS account is suspended as at 31 Dec of the year of contribution; or
    2. The amount of such contribution is withdrawn from your SRS account in the same year of contribution. 

    Example 1: Contribution and withdrawal were made in the same year

    Scenario 1: Contribution made before withdrawal in the same year

    Ms Jasmine, 40 years old, first made a contribution of $10,000 and then made a withdrawal of $8,000 in the same year. SRS relief will not be granted on the amount of $8,000 she contributed and withdrawn, and there will not be any tax and penalty on the amount withdrawn.

    Contribution made before withdrawal in the same year, where withdrawal is less than the amount contributedIf Ms Jasmine made a withdrawal of $15,000 instead of $8,000, there will be no tax relief allowed on the $10,000 contributed, as the amount withdrawn exceeds the amount contributed in the year. The remaining amount of $5,000 ($15,000 - $10,000) will be subject to tax and a 5% penalty.

    Contribution made before withdrawal in the same year, where withdrawal is more than amount contributedScenario 2: Withdrawal made before contribution in the same year 

    Ms Jasmine, 40 years old, first made a withdrawal of $15,000 and then made a contribution of $10,000 in the same year. The withdrawal of $15,000 will be brought to tax in full and a 5% penalty will be imposed. Subsequently, the SRS contribution made after will be allowed SRS tax relief.

    Withdrawal made before contribution in the same year

    Amount of SRS tax relief

    If you are eligible for the SRS tax relief, the relief amount is the actual amount of SRS contribution made by you and/or your employer (on your behalf) in the preceding year.

    Example 2: SRS contribution made

    Mr Tan, a foreigner, has made a contribution of $20,000 to his SRS account in 2020. In Year of Assessment 2021, the SRS bank operator will transmit the contribution information to IRAS and SRS tax relief of $20,000 will be included.

    Example on SRS contribution made

    How to claim SRS tax relief

    You do not need to make a claim in your Income Tax Return as it will be allowed automatically based on the information provided by the SRS operator. The SRS tax relief will be reflected in your Income, Deductions and Reliefs Statement when you e-File.

    For Foreigners and Singapore Permanent Residents

    If you are leaving your employment and leaving Singapore, and wish to claim the SRS tax relief on your contributions made in the year of departure, you must obtain a SRS statement of contributions/withdrawals (for tax clearance) (PDF, 61 KB) from the SRS bank operator specifically for the purpose of tax clearance.

    FAQs

    I am a foreigner/SPR leaving Singapore and seeking tax clearance. How should I inform IRAS on my SRS contribution/withdrawal?

    If you are a foreigner or SPR seeking tax clearance and you have made SRS contributions or withdrawals in the current year, you must obtain a SRS statement of contributions/withdrawals (for tax clearance) (PDF, 61KB) from the SRS bank operator. They will undertake to withhold tax at the prevailing non-resident tax rate should you need to withdraw the current year's SRS contribution within the year of tax clearance.

    The SRS bank operator or you will have to send the completed form to IRAS for processing. IRAS will take into account your SRS contributions or withdrawals in your tax assessments.

    I was holding a FIN card and now, I am a SPR in the later part of the year and contribution has been made in earlier part of the year, what will be my contribution cap?

    A pro-rated contribution cap applies. You should contact the SRS operator to have your contribution cap recalculated.

    If a person is a non-SPR in the current year but becomes a SPR in the following year, what will his/her SRS contributions cap be in the following year?

    His/her SRS contribution cap in the following year would be $15,300, which is the cap applicable to Singaporean/SPRs.

    Can I obtain a refund of my SRS contributions made in 2020, if for Year of Assessment 2021, 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.