An annuity is a continuous yearly payment, arising from any of the following:

  1. Annuity policy bought from an insurance company; or
  2. Gift or inheritance; or
  3. Payment for sale of an asset or surrender of a right.
Generally, all annuities received in Singapore are not taxable. For example, the CPF LIFE Scheme monthly payouts.

Taxable annuities

Annuities from the following sources are taxable:

S/N Source How the annuity is taxed
1 From the carrying on of a trade, business or profession, or through a partnership in Singapore -     3% of the total amount you paid for the annuity; or
-      If the total annuity payouts you have received is equal to the amount you paid for the annuity, any further amount of annuity payout received is taxed in full.
2 Supplementary Retirement Scheme (SRS) 100% or 50% are subject to tax upon withdrawal, depending on the circumstances. To find out more, please refer to the Tax on SRS withdrawal.
3 Annuity policy bought by your employer, in place of a pension or other employment benefits which are payable to you during employment or upon retirement Full amount of payout received. 

 

Reporting annuities

You must declare the taxable annuities received from partnerships or policies bought by your employer under 'Other Income' in your Income Tax Return.

For annuities received from SRS, you do not need to declare the amount in your Income Tax Return. Your SRS operator will transmit the relevant information to us electronically.