§ 10G — Withdrawals from Supplementary Retirement Scheme

10G.—(1) Where the amount of withdrawals made by an SRS member from his or her SRS account in any year exceeds the amount the SRS member contributed to his or her SRS account in that year, the excess amount withdrawn from his or her SRS account is, subject to subsections (3), (3G), (6), (7), (8) and (9), deemed to be income of the SRS member chargeable to tax under section 10(1)(g).[2/2016]

(2) Except where a withdrawal is made by the Official Assignee or the trustee in bankruptcy of an SRS member who is a bankrupt or where a withdrawal is made under subsection (3), (3G), (4) or (8) or deemed to be withdrawn under subsection (6), (7) or (9), a penalty of 5% of the amount withdrawn which is deemed to be income of an SRS member under subsection (1) is payable by the SRS member and must be deducted by the SRS operator from the amount so withdrawn.[2/2016]

(2A) The Minister may, for any good cause, remit, wholly or in part, any penalty payable by any SRS member under subsection (2).

(3) Subject to subsection (3G), only 50% of the following withdrawals made by an SRS member from his or her SRS account are deemed to be income of the SRS member chargeable to tax under section 10(1)(g):(a)

withdrawal of all the funds standing in his or her SRS account at the same time if the SRS member is neither a citizen of Singapore nor a Singapore permanent resident on the date of the withdrawal and for a continuous period of at least 10 years before that date, and has maintained his or her SRS account for a period of not less than 10 years from the date of his or her first contribution to his or her SRS account;

(b)

any withdrawal on or after the SRS member has attained the prescribed minimum retirement age prevailing at the time when the SRS member made his or her first contribution to his or her SRS account; or

(c)

any withdrawal made on the ground that the SRS member is physically or mentally incapacitated from ever continuing in any employment, is mentally disordered and incapable of managing himself or herself or his or her affairs or has a terminal illness or disease.[2/2016]

[Act 30 of 2023 wef 30/10/2023]

(3A) Subject to subsection (3C), where an SRS member has used funds in his or her SRS account for any investment, any payment to the SRS member thereafter, being —(a)

any gains or profits from the investment made;

(b)

any part of the funds the SRS member invested; or

(c)

any proceeds from the sale or liquidation of such investment,

is considered a withdrawal by the SRS member from his or her SRS account for the purposes of subsections (1), (2) and (3)(b) and (c).

(3B) Subsection (3A) applies even if the SRS account has been closed before the payment mentioned in that subsection, and in that event the person to whom the payment is made is treated as if the person is still an SRS member for the purposes of subsections (1), (2), (2A) and (3)(b) and (c).

(3C) Subsection (3A) does not apply to any payment received after any balance remaining or sum standing in the SRS account is deemed withdrawn under subsection (6), (7) or (9).

(3D) Where any funds in an SRS account have been used for investment, then all the funds standing in the SRS account are considered as having been withdrawn at the same time for the purposes of subsections (3)(a) and (3G) if, and only if, every investment has either been sold or liquidated, or is one which has been deducted from the balance in the SRS account, and —(a)

in the case of every investment that has been sold or liquidated, amounts which the financial product provider declared to the SRS member to be all the gains or profits from the investment, all funds used for the investment, and all the proceeds from the sale or liquidation have been returned to the account and these, together with all funds standing in the SRS account, are withdrawn at the same time; and

(b)

in the case of every investment which has been deducted from the balance in the SRS account, the date of the deduction is the same as the date on which the withdrawal referred to in paragraph (a) takes place.[37/2014; 2/2016]

(3E) Where —(a)

an SRS member has used funds in his or her SRS account for any investment; and

(b)

the investment is one which has been deducted from the balance in the SRS account,

then an amount equal to the value of the investment as determined in the manner prescribed by regulations made under subsection (11), is considered as having been withdrawn by the SRS member from his or her SRS account on the date of the deduction for the purposes of subsections (1), (2), (3) and (3G).

[37/2014; 2/2016]

(3F) In subsections (3D) and (3E) —(a)

an investment is one which has been deducted from the balance in an SRS account if the SRS operator in question has, in accordance with the regulations made under subsection (11), approved the deduction of the sums representing the investment from the balance in the SRS account; and

(b)

the date of the deduction is the date of the approval referred to in paragraph (a).[37/2014]

(3G) Where an SRS member makes a withdrawal of all of the funds standing in the SRS account of the SRS member on the ground that the SRS member has a terminal illness or disease, then an amount determined in the following manner (if more than zero) is treated as the SRS member’s income chargeable to tax under section 10(1)(g):

where A

is the amount of the withdrawal; and

B

is the amount determined under subsection (9A).

[2/2016]

[Act 30 of 2023 wef 30/10/2023]

(4) Where any contribution made by an SRS member in any year to his or her SRS account exceeds his or her SRS contribution cap for that year (called in this section excess contribution) —(a)

the aggregate of the excess contribution and, unless the Comptroller otherwise directs, an amount equal to 5% of the excess contribution, to be compounded yearly in accordance with regulations made under this section; or

(b)

the total amount standing in his or her SRS account,

whichever amount is the lower, must be withdrawn by the SRS member from his or her SRS account by 31 December of the year in which he or she has been notified by the Comptroller of the excess contribution; and that amount is deemed to be the SRS member’s income chargeable to tax under section 10(1)(g) for that year.

(5) Where an SRS member is eligible to make a withdrawal under subsection (3)(b), all the funds (excluding any life annuity) standing in his or her SRS account must be withdrawn not later than 10 years from the date the SRS member made his or her first withdrawal under subsection (3)(b).

(6) Upon the expiry of the period referred to in subsection (5), any balance (excluding any life annuity and any amount not withdrawn under subsection (4)) remaining in the SRS account is deemed to be withdrawn by the SRS member and 50% of such balance is deemed to be the SRS member’s income chargeable to tax under section 10(1)(g) for the year in which the period expires.

(6A) Where an SRS member —(a)

made his or her first withdrawal under subsection (3)(b); and

(b)

subsequently made one or more contributions to his or her SRS account during the period from 1 October 2008 to 31 December 2008 (both dates inclusive),

then —

(c)

any withdrawal made under subsection (3)(b) prior to the date of the first of the SRS member’s contributions referred to in paragraph (b) is disregarded for the purpose of determining the period referred to in subsection (5); and

(d)

the date of the SRS member’s first withdrawal made under subsection (3)(b) after the date of the first of his or her contributions referred to in paragraph (b) is deemed to be the date the SRS member made his or her first withdrawal under subsection (3)(b) for the purpose of determining the period referred to in subsection (5).

(6B) Where an SRS member —(a)

had made one or more withdrawals under subsection (3)(b) of all the funds standing in his or her SRS account and had closed his or her SRS account (called in this subsection the first SRS account); and

(b)

subsequently opened another SRS account during the period from 1 October 2008 to 31 December 2008 (both dates inclusive) (called in this subsection the second SRS account),

then —

(c)

the reference to the date the SRS member made his or her first withdrawal under subsection (3)(b) for the purpose of determining the period referred to in subsection (5) is a reference to the date the SRS member makes his or her first withdrawal after he or she opened the second SRS account; and

(d)

for the purposes of subsection (1) and section 39(2)(o), both the first SRS account and the second SRS account are deemed to be the same account as if the first SRS account had never been closed.

(7) Where an SRS member is eligible to make a withdrawal under subsection (3)(c), he or she must withdraw all the funds (excluding any life annuity) standing in his or her SRS account not later than 10 years from the date he or she makes the first withdrawal; and upon the expiry of that period, any balance (excluding any life annuity and any amount not withdrawn under subsection (4)) remaining in his or her SRS account is deemed to be withdrawn by the SRS member and 50% of such balance is deemed to be the SRS member’s income chargeable to tax under section 10(1)(g).

(8) Only 50% of any annuity payment made under a life annuity purchased by an SRS member under the SRS is deemed to be income of the SRS member chargeable to tax under section 10(1)(g) upon —(a)

the expiry of the period referred to in subsection (5);

(b)

the expiry of the period referred to in subsection (7); or

(c)

the closure of the SRS account of the SRS member —(i)

on or after the date the SRS member attains the prescribed minimum retirement age prevailing at the time the SRS member makes the first contribution to the SRS account; or

(ii)

on or after the date the SRS member becomes physically or mentally incapacitated from ever continuing in any employment, becomes mentally disordered and incapable of managing himself or herself or his or her affairs, or is diagnosed to have a terminal illness or disease.[2/2016]

[Act 30 of 2023 wef 30/10/2023]

(9) When an SRS member dies, any sum standing in the SRS account of the SRS member is treated as withdrawn on the date of death, and an amount determined in the following manner (if more than zero) is treated as the SRS member’s income chargeable to tax under section 10(1)(g):

where A

is the amount treated as withdrawn; and

B

is the amount determined under subsection (9A).

[2/2016]

(9A) For the purposes of subsections (3G) and (9), the amount B referred to in those subsections is —

where C

is —

(a)

if the SRS member made a withdrawal under subsection (3)(b) or (c) (not being a withdrawal under subsection (3G)) in any year before the relevant year, the total number of years (a part of a year being treated as a full year) in the period —

(i)

beginning with the year in which the SRS member made the first such withdrawal; and

(ii)

ending with the year immediately before the relevant year,

or, if the first year and the last year in the period are (or are part of) the same year, one; or

(b)

if the SRS member made his or her first withdrawal under subsection (3)(b) or (c) (not being a withdrawal under subsection (3G)) in the relevant year, or did not make any such withdrawal, zero; and

D

is the lower of —

(a)

$40,000; and

(b)

the sum of the following withdrawals made in the relevant year (which is not a withdrawal under subsection (3G)):

(i)

every withdrawal made under subsection (3)(b);

(ii)

every withdrawal made under subsection (3)(c).

[2/2016]

(9B) In subsection (9A), “relevant year” means —(a)

the year in which the SRS member makes the withdrawal under subsection (3G); or

(b)

the year of death of the SRS member,

as the case may be.

[2/2016]

(10) For the purposes of this section, the use of funds in his or her SRS account by an SRS member for investment in savings or investment products offered under the SRS and for disbursement of any charges in relation to the operation of his or her SRS account is deemed not to be a withdrawal from his or her SRS account.

(11) The Minister may by regulations establish a Supplementary Retirement Scheme to provide for voluntary cash contributions by individuals and by their employers on their behalf to accounts operated by SRS operators so as to encourage individuals to save for their old age.

(12) Without limiting subsection (11), regulations made under that subsection may provide for —(a)

the opening and the type of account for any SRS member into which contributions may be made;

(b)

the SRS contribution cap, the mode and manner of the contributions and withdrawals that can be made by any SRS member;

(c)

the method of valuation of investment products acquired under the SRS;

(d)

the method of computing income deemed to accrue from excess contributions made by any SRS member;

(e)

the suspension or closure of SRS accounts and the circumstances in which the SRS accounts may be suspended or closed;

(f)

the terms and conditions governing the relationship between the Government, SRS operators, SRS members and the Comptroller under the SRS;

(g)

the purposes for which the contributions made under the SRS can be utilised and invested, the persons with whom investments may be made and the terms and conditions of the investment and withdrawal under the SRS;

(h)

the consequences for any contravention of the regulations, including making any act or omission in contravention of such regulations an offence and prescribing the penalties for such offence;

(i)

the requirements and obligations to be observed by SRS members, SRS operators and financial product providers under the SRS; and

(j)

generally for giving full effect to or for carrying out the purposes of this section.

(12A) Without limiting subsections (11) and (12), regulations made under subsection (11) may, for the purposes of subsections (3D), (3E) and (3F) and section 45EA (which relates to collection of tax by an SRS operator for payment to the Comptroller on the value of an investment deducted from an SRS account of a non‑citizen) —(a)

provide for the manner and time of valuation of any investment;

(b)

enable an SRS operator to approve the deduction of the sums representing an investment from the balance in an SRS account under such circumstances as may be specified, and impose duties on the SRS operator before and after giving the approval; and

(c)

for the purposes of section 45EA, prescribe different methods of reckoning the value of an investment under different circumstances.[37/2014]

(13) This section does not apply to any SRS member whose SRS account is opened and subsequently closed within the same year.

(14) In this section, unless the context otherwise requires —(a)

a reference to an SRS member making a contribution to his or her SRS account includes the SRS member’s employer making a contribution to that account on the SRS member’s behalf; and

(b)

a reference to a contribution of an SRS member to his or her SRS account includes a contribution by the SRS member’s employer to that account on the SRS member’s behalf.[10L

—(1) Where the amount of withdrawals made by an SRS member from his or her SRS account in any year exceeds the amount the SRS member contributed to his or her SRS account in that year, the excess amount withdrawn from his or her SRS account is, subject to subsections (3), (3G), (6), (7), (8) and (9), deemed to be income of the SRS member chargeable to tax under section 10(1)(g).[2/2016]

(2) Except where a withdrawal is made by the Official Assignee or the trustee in bankruptcy of an SRS member who is a bankrupt or where a withdrawal is made under subsection (3), (3G), (4) or (8) or deemed to be withdrawn under subsection (6), (7) or (9), a penalty of 5% of the amount withdrawn which is deemed to be income of an SRS member under subsection (1) is payable by the SRS member and must be deducted by the SRS operator from the amount so withdrawn.[2/2016]

(2A) The Minister may, for any good cause, remit, wholly or in part, any penalty payable by any SRS member under subsection (2).

(3) Subject to subsection (3G), only 50% of the following withdrawals made by an SRS member from his or her SRS account are deemed to be income of the SRS member chargeable to tax under section 10(1)(g):(a)

withdrawal of all the funds standing in his or her SRS account at the same time if the SRS member is neither a citizen of Singapore nor a Singapore permanent resident on the date of the withdrawal and for a continuous period of at least 10 years before that date, and has maintained his or her SRS account for a period of not less than 10 years from the date of his or her first contribution to his or her SRS account;

(b)

any withdrawal on or after the SRS member has attained the prescribed minimum retirement age prevailing at the time when the SRS member made his or her first contribution to his or her SRS account; or

(c)

any withdrawal made on the ground that the SRS member is physically or mentally incapacitated from ever continuing in any employment, is mentally disordered and incapable of managing himself or herself or his or her affairs or has a terminal illness or disease.[2/2016]

[Act 30 of 2023 wef 30/10/2023]

(3A) Subject to subsection (3C), where an SRS member has used funds in his or her SRS account for any investment, any payment to the SRS member thereafter, being —(a)

any gains or profits from the investment made;

(b)

any part of the funds the SRS member invested; or

(c)

any proceeds from the sale or liquidation of such investment,

is considered a withdrawal by the SRS member from his or her SRS account for the purposes of subsections (1), (2) and (3)(b) and (c).

(3B) Subsection (3A) applies even if the SRS account has been closed before the payment mentioned in that subsection, and in that event the person to whom the payment is made is treated as if the person is still an SRS member for the purposes of subsections (1), (2), (2A) and (3)(b) and (c).

(3C) Subsection (3A) does not apply to any payment received after any balance remaining or sum standing in the SRS account is deemed withdrawn under subsection (6), (7) or (9).

(3D) Where any funds in an SRS account have been used for investment, then all the funds standing in the SRS account are considered as having been withdrawn at the same time for the purposes of subsections (3)(a) and (3G) if, and only if, every investment has either been sold or liquidated, or is one which has been deducted from the balance in the SRS account, and —(a)

in the case of every investment that has been sold or liquidated, amounts which the financial product provider declared to the SRS member to be all the gains or profits from the investment, all funds used for the investment, and all the proceeds from the sale or liquidation have been returned to the account and these, together with all funds standing in the SRS account, are withdrawn at the same time; and

(b)

in the case of every investment which has been deducted from the balance in the SRS account, the date of the deduction is the same as the date on which the withdrawal referred to in paragraph (a) takes place.[37/2014; 2/2016]

(3E) Where —(a)

an SRS member has used funds in his or her SRS account for any investment; and

(b)

the investment is one which has been deducted from the balance in the SRS account,

then an amount equal to the value of the investment as determined in the manner prescribed by regulations made under subsection (11), is considered as having been withdrawn by the SRS member from his or her SRS account on the date of the deduction for the purposes of subsections (1), (2), (3) and (3G).

[37/2014; 2/2016]

(3F) In subsections (3D) and (3E) —(a)

an investment is one which has been deducted from the balance in an SRS account if the SRS operator in question has, in accordance with the regulations made under subsection (11), approved the deduction of the sums representing the investment from the balance in the SRS account; and

(b)

the date of the deduction is the date of the approval referred to in paragraph (a).[37/2014]

(3G) Where an SRS member makes a withdrawal of all of the funds standing in the SRS account of the SRS member on the ground that the SRS member has a terminal illness or disease, then an amount determined in the following manner (if more than zero) is treated as the SRS member’s income chargeable to tax under section 10(1)(g):

where A

is the amount of the withdrawal; and

B

is the amount determined under subsection (9A).

[2/2016]

[Act 30 of 2023 wef 30/10/2023]

(4) Where any contribution made by an SRS member in any year to his or her SRS account exceeds his or her SRS contribution cap for that year (called in this section excess contribution) —(a)

the aggregate of the excess contribution and, unless the Comptroller otherwise directs, an amount equal to 5% of the excess contribution, to be compounded yearly in accordance with regulations made under this section; or

(b)

the total amount standing in his or her SRS account,

whichever amount is the lower, must be withdrawn by the SRS member from his or her SRS account by 31 December of the year in which he or she has been notified by the Comptroller of the excess contribution; and that amount is deemed to be the SRS member’s income chargeable to tax under section 10(1)(g) for that year.

(5) Where an SRS member is eligible to make a withdrawal under subsection (3)(b), all the funds (excluding any life annuity) standing in his or her SRS account must be withdrawn not later than 10 years from the date the SRS member made his or her first withdrawal under subsection (3)(b).

(6) Upon the expiry of the period referred to in subsection (5), any balance (excluding any life annuity and any amount not withdrawn under subsection (4)) remaining in the SRS account is deemed to be withdrawn by the SRS member and 50% of such balance is deemed to be the SRS member’s income chargeable to tax under section 10(1)(g) for the year in which the period expires.

(6A) Where an SRS member —(a)

made his or her first withdrawal under subsection (3)(b); and

(b)

subsequently made one or more contributions to his or her SRS account during the period from 1 October 2008 to 31 December 2008 (both dates inclusive),

then —

(c)

any withdrawal made under subsection (3)(b) prior to the date of the first of the SRS member’s contributions referred to in paragraph (b) is disregarded for the purpose of determining the period referred to in subsection (5); and

(d)

the date of the SRS member’s first withdrawal made under subsection (3)(b) after the date of the first of his or her contributions referred to in paragraph (b) is deemed to be the date the SRS member made his or her first withdrawal under subsection (3)(b) for the purpose of determining the period referred to in subsection (5).

(6B) Where an SRS member —(a)

had made one or more withdrawals under subsection (3)(b) of all the funds standing in his or her SRS account and had closed his or her SRS account (called in this subsection the first SRS account); and

(b)

subsequently opened another SRS account during the period from 1 October 2008 to 31 December 2008 (both dates inclusive) (called in this subsection the second SRS account),

then —

(c)

the reference to the date the SRS member made his or her first withdrawal under subsection (3)(b) for the purpose of determining the period referred to in subsection (5) is a reference to the date the SRS member makes his or her first withdrawal after he or she opened the second SRS account; and

(d)

for the purposes of subsection (1) and section 39(2)(o), both the first SRS account and the second SRS account are deemed to be the same account as if the first SRS account had never been closed.

(7) Where an SRS member is eligible to make a withdrawal under subsection (3)(c), he or she must withdraw all the funds (excluding any life annuity) standing in his or her SRS account not later than 10 years from the date he or she makes the first withdrawal; and upon the expiry of that period, any balance (excluding any life annuity and any amount not withdrawn under subsection (4)) remaining in his or her SRS account is deemed to be withdrawn by the SRS member and 50% of such balance is deemed to be the SRS member’s income chargeable to tax under section 10(1)(g).

(8) Only 50% of any annuity payment made under a life annuity purchased by an SRS member under the SRS is deemed to be income of the SRS member chargeable to tax under section 10(1)(g) upon —(a)

the expiry of the period referred to in subsection (5);

(b)

the expiry of the period referred to in subsection (7); or

(c)

the closure of the SRS account of the SRS member —(i)

on or after the date the SRS member attains the prescribed minimum retirement age prevailing at the time the SRS member makes the first contribution to the SRS account; or

(ii)

on or after the date the SRS member becomes physically or mentally incapacitated from ever continuing in any employment, becomes mentally disordered and incapable of managing himself or herself or his or her affairs, or is diagnosed to have a terminal illness or disease.[2/2016]

[Act 30 of 2023 wef 30/10/2023]

(9) When an SRS member dies, any sum standing in the SRS account of the SRS member is treated as withdrawn on the date of death, and an amount determined in the following manner (if more than zero) is treated as the SRS member’s income chargeable to tax under section 10(1)(g):

where A

is the amount treated as withdrawn; and

B

is the amount determined under subsection (9A).

[2/2016]

(9A) For the purposes of subsections (3G) and (9), the amount B referred to in those subsections is —

where C

is —

(a)

if the SRS member made a withdrawal under subsection (3)(b) or (c) (not being a withdrawal under subsection (3G)) in any year before the relevant year, the total number of years (a part of a year being treated as a full year) in the period —

(i)

beginning with the year in which the SRS member made the first such withdrawal; and

(ii)

ending with the year immediately before the relevant year,

or, if the first year and the last year in the period are (or are part of) the same year, one; or

(b)

if the SRS member made his or her first withdrawal under subsection (3)(b) or (c) (not being a withdrawal under subsection (3G)) in the relevant year, or did not make any such withdrawal, zero; and

D

is the lower of —

(a)

$40,000; and

(b)

the sum of the following withdrawals made in the relevant year (which is not a withdrawal under subsection (3G)):

(i)

every withdrawal made under subsection (3)(b);

(ii)

every withdrawal made under subsection (3)(c).

[2/2016]

(9B) In subsection (9A), “relevant year” means —(a)

the year in which the SRS member makes the withdrawal under subsection (3G); or

(b)

the year of death of the SRS member,

as the case may be.

[2/2016]

(10) For the purposes of this section, the use of funds in his or her SRS account by an SRS member for investment in savings or investment products offered under the SRS and for disbursement of any charges in relation to the operation of his or her SRS account is deemed not to be a withdrawal from his or her SRS account.

(11) The Minister may by regulations establish a Supplementary Retirement Scheme to provide for voluntary cash contributions by individuals and by their employers on their behalf to accounts operated by SRS operators so as to encourage individuals to save for their old age.

(12) Without limiting subsection (11), regulations made under that subsection may provide for —(a)

the opening and the type of account for any SRS member into which contributions may be made;

(b)

the SRS contribution cap, the mode and manner of the contributions and withdrawals that can be made by any SRS member;

(c)

the method of valuation of investment products acquired under the SRS;

(d)

the method of computing income deemed to accrue from excess contributions made by any SRS member;

(e)

the suspension or closure of SRS accounts and the circumstances in which the SRS accounts may be suspended or closed;

(f)

the terms and conditions governing the relationship between the Government, SRS operators, SRS members and the Comptroller under the SRS;

(g)

the purposes for which the contributions made under the SRS can be utilised and invested, the persons with whom investments may be made and the terms and conditions of the investment and withdrawal under the SRS;

(h)

the consequences for any contravention of the regulations, including making any act or omission in contravention of such regulations an offence and prescribing the penalties for such offence;

(i)

the requirements and obligations to be observed by SRS members, SRS operators and financial product providers under the SRS; and

(j)

generally for giving full effect to or for carrying out the purposes of this section.

(12A) Without limiting subsections (11) and (12), regulations made under subsection (11) may, for the purposes of subsections (3D), (3E) and (3F) and section 45EA (which relates to collection of tax by an SRS operator for payment to the Comptroller on the value of an investment deducted from an SRS account of a non‑citizen) —(a)

provide for the manner and time of valuation of any investment;

(b)

enable an SRS operator to approve the deduction of the sums representing an investment from the balance in an SRS account under such circumstances as may be specified, and impose duties on the SRS operator before and after giving the approval; and

(c)

for the purposes of section 45EA, prescribe different methods of reckoning the value of an investment under different circumstances.[37/2014]

(13) This section does not apply to any SRS member whose SRS account is opened and subsequently closed within the same year.

(14) In this section, unless the context otherwise requires —(a)

a reference to an SRS member making a contribution to his or her SRS account includes the SRS member’s employer making a contribution to that account on the SRS member’s behalf; and

(b)

a reference to a contribution of an SRS member to his or her SRS account includes a contribution by the SRS member’s employer to that account on the SRS member’s behalf.[10L