One Stop Financial Planning Information

Friday, February 19, 2021

Benefits

The SRS offers attractive tax benefits. Contributions to SRS are eligible for tax relief. SRS contributions made on or after 1 Jan 2017 are subject to a cap on personal income tax relief of $80,000 per Year of Assessment from Year of Assessment 2018.

Investment returns are accumulated tax-free and only 50% of the withdrawals from SRS are taxable at retirement (referred to as a “50% tax concession”)

Who is eligible to open an SRS account

Singapore Citizens, Singapore Permanent Residents (SPRs) and foreigners who derive any form of income can make SRS contributions in the current year. You must be:

At least 18 years of age;
Not an undischarged bankrupt;
Not suffering from a mental disorder; and
Capable of managing yourself and your affairs.

Amount of SRS Tax Relief

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

Here’s a rough estimate on the income tax you can expect to pay based on your annual income, before and after your SRS contribution.