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SRS - Budget 2008: Changes for Supplementary Retirement Scheme |
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The Supplementary Retirement Scheme (SRS) provides a tax incentive for Singaporeans as well as foreigners to save for retirement outside of the CPF scheme. It will be liberalized to allow employers to directly contribute to the SRS on behalf of their employees. In addition, the age limit on contributions to the SRS will be removed since more Singaporeans are now working beyond the retirement age.
Details are shown in the table below:
| Current Treatment |
New Treatment |
| Employers cannot directly contribute to their employees’ SRS accounts. |
Employers can contribute to their employees’ SRS accounts, subject to the current contribution limits of $11,475 per year for Singapore Citizens and Permanent Residents, and $26,775 for foreigners for each employee.
Employers will be able to claim full tax deduction for the contributions they make to their employees’ SRS accounts.
SRS members will be taxable on the contributions that their employers make to their SRS accounts. But, they can enjoy a tax relief up to the applicable contribution limit per year of assessment for the SRS contributions which they or their employers make. |
| SRS members can contribute up to the prevailing statutory retirement age. They can withdraw their SRS monies over 10 years from the prevailing statutory retirement age. |
SRS members can contribute beyond the prevailing statutory retirement age, up to the point of their first penalty-free withdrawal. They can withdraw their SRS monies over 10 years from the point of their first penalty-free withdrawal. |
| Individuals without any earned employment income in the previous year cannot contribute to SRS in the current year. |
Individuals without any earned employment income in the previous year can contribute to the SRS in the current year.
These changes will take effect from year of assessment 2009. |
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