Supplementary Retirement Scheme: contribution caps and tax basics
The SRS gives tax relief on contributions, lets investment returns grow tax-free, and taxes 50% of withdrawals at or after the prescribed retirement age.
On this page
- Annual cap, Singapore Citizens and PRs
- S$15,300 a yearIRAS: SRS contribution caps
- Annual cap, foreigners
- S$35,700 a yearIRAS: SRS contribution caps
- Overall personal income tax relief cap
- S$80,000 across all reliefs (including SRS)IRAS: SRS contribution caps
- Taxable share at retirement
- 50% of the amount withdrawn; 100% if withdrawn earlyMOF: SRS withdrawal rules
- Early withdrawal penalty
- 5% of the withdrawn amount, on top of full taxMOF: SRS withdrawal rules
Who can open an SRS account
Singapore Citizens, Permanent Residents and foreigners who are at least 18 years old, not undischarged bankrupts, and capable of managing their own affairs can open an SRS account. Only one SRS account is permitted at any time; holding more than one is an offence. The three SRS operators are DBS, OCBC and UOB. IRAS, SRS contributions and tax relief (opens in a new tab).
Annual contribution caps
The annual cap is S$15,300 for Singapore Citizens and PRs, S$35,700 for foreigners, as stated in IRAS, SRS contributions and tax relief. Foreigners must submit a declaration form to their SRS operator each year to confirm their status and calculate the correct cap. S$15,300 for Singapore Citizens and PRs, S$35,700 for foreigners (opens in a new tab).
If a foreigner becomes a Singapore Citizen or PR during the year, the cap applies pro-rata from that year. Penalties apply for excess contributions made with an incorrect declaration. IRAS, SRS contributions and tax relief (opens in a new tab).
Tax relief and the S$80,000 overall cap
Contributions must be made by 31 December of the year to qualify for tax relief in the following YA. The relief requires being a tax resident for that YA. The relief is the lesser of the contribution made and the annual cap, limited by the overall S$80,000 personal income tax relief cap that applies across all reliefs. SRS contributions are not refunded; they can only be withdrawn and are subject to tax and potential penalties. IRAS, SRS contributions and tax relief (opens in a new tab).
For a Singapore Citizen with no other reliefs, contributing S$15,300 in a year uses S$15,300 of the S$80,000 cap. This is a worked example using the money.financial calculator, assuming tax residency for the YA.
The relief is automatic when filing; no separate claim is needed. Contributions made by an employer on behalf of the employee are taxable remuneration and also qualify for relief. IRAS, SRS contributions and tax relief (opens in a new tab).
Withdrawal tax at and before the prescribed retirement age
Withdrawals before the prescribed retirement age are fully taxable and incur a 5% penalty. At or after the statutory retirement age prevailing at the time of the first contribution, 50% of each withdrawal is taxable. MOF: SRS withdrawal rules (opens in a new tab).
50% of a withdrawal on medical grounds is taxable. Withdrawals after death or on terminal illness may qualify for a full withdrawal with a tax exemption of up to S$400,000. Spreading withdrawals over 10 years after retirement age can manage the tax bill by keeping each year's taxable amount lower. IRAS, SRS contributions and tax relief (opens in a new tab). MOF: SRS 10-year spreading (opens in a new tab).