SRS & CPFIS
Pay less income tax while saving for the future with the Supplementary Retirement Scheme (SRS).
The SRS scheme is designed to help you save for the future, while reducing your tax expenses at the present time.
|An illustration of how SRS helps you save|
|Less: Personal Reliefs (Earned Income, CPF, Qualifying Child, Parent etc)||S$31,500|
|Without SRS||With SRS|
|Potential tax savings*||S$1,071|
Computation table is for illustration purpose only.
* Income tax savings based on the assumption that a married male Singapore Citizen has an annual income of S$102,000 in 2015 and enjoys total personal tax relief of S$31,500 (Earned Income Relief of S$1,000, CPF Relief of S$17,000, NSman Self Relief of S$5,000, Qualifying Child Relief of S$4,000 and Parent Relief of S$4,500) and SRS relief of S$15,300 for the Year of Assessment 2016.
If you are an existing DBS/POSB customer with a Savings/Current account and iBanking
Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under the Supplementary Retirement Scheme are insured by the Singapore Deposit Insurance Corporation, for up to SGD50,000 in aggregate per depositor per Scheme member by law. Monies and deposits denominated in Singapore dollars under the CPF Investment Scheme and CPF Minimum Sum Scheme are aggregated and separately insured up to SGD50,000 for each depositor per Scheme member. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.
Yes you can do so via these simple steps:
You can visit any of our branches to complete and sign the following forms:
Besides having extra savings for your retirement, you will also enjoy tax benefits. SRS contributions entitle you to tax reliefs, as each dollar that you save in your SRS account will reduce your chargeable income by a dollar. However, there is cap# to the annual contribution. This cap# is S$15,300 for Singaporeans and Singapore Permanent Residents. Foreigners are allowed a higher annual contribution of S$35,700 as they do not enjoy tax relief on their CPF contributions.
|Citizenship||SRS Contribution Rate|
|Singaporeans, Singapore Permanent Residents||15%|
#The cap is determined by multiplying the appropriate SRS contribution rate by an absolute income base base (currently S$102,000 per annum with effect from 1 Jan 2016).
Your monies will earn an interest of 0.05% p.a.^, You can invest in a wide range of financial instruments, including those offered by product providers other than your SRS operator. Acceptable financial instruments include unit trusts, insurance products and other financial products, including those offered by financial product providers other than your SRS operator. There are certain restrictions on purchasing insurance products. Note that direct property investments are not allowed.
All sale proceeds must be returned to the SRS account.
Upon reaching the retirement age of 62, you may make withdrawals at any time, and for any amount. 50% of the withdrawals will be subject to income tax. If however you make a withdrawal before the retirement age of 62, 100% of the sum withdrawn will be subject to income tax. You will also face a 5% penalty for premature withdrawal.
No, only 50% of your withdrawals are subject to tax. Furthermore, you are allowed to spread out your withdrawals over a period of time. Having lower or nominal income at retirement, you may end up paying little or no income tax.
^The interest rate on balances in the SRS Account which are not invested is currently at 0.050% p.a. as of October 2012.
Yes, you can view the following information on your SRS account on iBanking:
Information on shares corporate action event, can be found in the SGX website. Refer to Company Announcements, under Company Information.
The "security credit date" information can be found in the SGX website. Refer to Company Announcements, under Company Information.