November 2023 / Singapore

6 Novembre 2023

Supplementary Retirement Scheme

The Supplementary Retirement Scheme is part of the Singapore government’s multi-pronged strategy to address the financial needs of a greying population by helping Singaporeans to save more for their old age. It began in 2001 and is operated by the private sector. The SRS complements the Central Provident Fund (CPF). CPF savings are meant to provide for housing and medical needs and for basic living needs after retirement. Unlike the CPF scheme, participation in SRS is voluntary. SRS members can contribute a varying amount to SRS (subject to a cap) at their own discretion. The contributions may be used to purchase various investment instruments.


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”).

Personal Income Tax Relief Cap from 1 Jan 2017 The personal income tax relief cap of $80,000 applies from Year of Assessment 2018 (when income earned in 2017 is assessed to tax) to SRS contributions made on or after 1 Jan 2017. As SRS contributions made cannot be refunded, SRS members who make SRS contributions on or after 1 Jan 2017 should take note of the overall personal income tax relief cap. They should evaluate whether they would benefit from tax relief on their SRS contributions, and make an informed decision accordingly.

Latest Enhancements to the SRS

We review and enhance the SRS periodically to better meet the retirement needs of SRS members. Some recent enhancements to the SRS include:
  1. Allowing SRS withdrawals to be made in the form of investments from 1 July 2015
  2. Providing a tax exemption of up to $400,000 for SRS funds deemed withdrawn upon demise, or withdrawn in full on the grounds of terminal illness
  3. Increasing the SRS contribution cap.

Increase in SRS Contribution Cap

From 1 January 2016, the annual SRS contribution cap will be increased to:
  • $15,300 for Singapore Citizens and Permanent Residents; and (ii)$35,700 for foreigners.

30 Novembre 2023

Tax Authorities Update Guidance on Tax Residency Determination

The Inland Authority of Singapore (IRAS) has updated its guidance on determining whether a company is a tax resident in Singapore in instances where technology allowing virtual participation is used in Board of Directors meetings.

Generally, a company is considered a Singapore tax resident for a year of assessment if the control and management of its business was exercised in Singapore in the preceding calendar year. The location of the company's Board of Directors meetings where strategic decisions are made usually determines where control and management are exercised. In certain cases, holding Board of Directors meetings in Singapore may not be sufficient and IRAS will consider all the facts provided by the company to decide.

IRAS has clarified that a Board of Directors meeting which involves the use of virtual meeting technology will generally be regarded as having strategic decisions made in Singapore if:

  • at least 50% of the directors with the authority to make strategic decisions are physically present in Singapore during the meetings; or
  • the Chairman of the Board of Directors, if the company has such an appointment, is physically present in Singapore during the meeting.