§ 45EA — Approval of deduction of investment from SRS account of non‑citizen

45EA.—(1) This section applies to an investment made using funds from an SRS account of an SRS member who is not a citizen of Singapore.[37/2014]

(2) Before approving the deduction of the investment from the balance in the SRS account, an SRS operator must comply with subsection (3), unless the Comptroller has waived such compliance by written notice to the SRS operator.[37/2014]

(3) Subject to subsection (3A), the SRS operator must collect from the SRS member or (if the SRS member is deceased) the SRS member’s legal personal representative tax at the rate of 24% on an amount that is equal to 50% of the total value of the investment to be deducted from the balance in the SRS account.[37/2014; 2/2016]

[Act 33 of 2022 wef 01/01/2023]

(3A) If the deduction of the investment from the balance in the SRS account is to be made on the ground in section 10G(3G), the amount on which tax is to be collected under subsection (3) is determined in the following manner:

where A

is the amount of funds to be actually withdrawn from the SRS account on that ground, if any;

B

is the total value of the investment that is to be deducted from the balance in the SRS account; and

C

is the amount of the SRS member’s income chargeable to tax under section 10(1)(g) as determined under section 10G(3G).

[2/2016]

(3B) The Minister may, by rules made under section 7, substitute the rate in subsection (3) with a higher or lower rate (including 0%) for any SRS member or class of SRS members that is or are subject to that subsection, and subsection (3) applies to that SRS member or class of SRS members accordingly.[34/2016]

(3C) The rules mentioned in subsection (3B) may —(a)

provide that the substitute rate applies only if such conditions as may be specified in the rules are satisfied; and

(b)

prescribe different substitute rates for different SRS members or classes of SRS members.[34/2016]

(4) In subsections (3) and (3A), the value of an investment is reckoned in accordance with the regulations made under section 10G(11).[37/2014; 2/2016]

(5) If the Comptroller has given a written notice to the SRS operator requiring the SRS operator to collect tax at a higher or lower rate than 24% or the rate prescribed by the rules mentioned in subsection (3B) in substitution for it, then the reference to the rate of 24% or the substitute rate is a reference to the higher or lower rate.[2/2016; 34/2016]

[Act 33 of 2022 wef 01/01/2023]

(6) The amount of tax collected under subsection (3) is a debt due from the SRS operator to the Government and is recoverable in the manner provided in section 89.[37/2014]

(7) Where an SRS operator fails to collect the tax under subsection (3), the amount not collected is a debt due from the SRS operator to the Government and is recoverable in the manner provided in section 89.[37/2014]

(8) If the amount of tax which is required to be collected under subsection (3) is not paid to the Comptroller —(a)

by the 15th day of the second month following the month in which the date the SRS operator approves the deduction falls or by such later date as the Comptroller may allow, a sum equal to 5% of such amount of tax is payable; and

(b)

within 30 days after the time specified in paragraph (a), an additional penalty of 1% of such amount of tax is payable for each completed month that the tax remains unpaid, but the total additional penalty under this paragraph must not exceed 15% of the amount of tax outstanding.[37/2014]

(9) An SRS operator must, after collecting the tax under subsection (3), give written notice of such collection to the Comptroller by the time specified in subsection (8)(a) and in the manner mentioned in subsection (9A), and if the SRS operator fails to do so, the SRS operator shall be guilty of an offence and shall on conviction pay a penalty equal to 3 times the amount of tax so collected and shall also be liable to a fine not exceeding $10,000.[37/2014; 34/2016]

(9A) The notice under subsection (9) must be given using the electronic service, except that the Comptroller may in any particular case or class of cases permit the notice to be given in any other manner.[34/2016]

(10) The Comptroller may —(a)

compound an offence under subsection (9); and

(b)

for any good cause remit the whole or any part of the penalty payable under subsection (8).[37/2014]

(11) In this section —(a)

a reference to an SRS operator approving the deduction of an investment from the balance in an SRS account is a reference to the SRS operator approving the deduction of the sums representing the investment from the balance in the SRS account in accordance with the regulations made under section 10G(11); and

(b)

a reference to the date of approval by an SRS operator of a deduction of an investment from the balance in an SRS account is a reference to the date the SRS operator approves a deduction of the sums representing the investment from the balance in the SRS account in accordance with those regulations.[37/2014]

—(1) This section applies to an investment made using funds from an SRS account of an SRS member who is not a citizen of Singapore.[37/2014]

(2) Before approving the deduction of the investment from the balance in the SRS account, an SRS operator must comply with subsection (3), unless the Comptroller has waived such compliance by written notice to the SRS operator.[37/2014]

(3) Subject to subsection (3A), the SRS operator must collect from the SRS member or (if the SRS member is deceased) the SRS member’s legal personal representative tax at the rate of 24% on an amount that is equal to 50% of the total value of the investment to be deducted from the balance in the SRS account.[37/2014; 2/2016]

[Act 33 of 2022 wef 01/01/2023]

(3A) If the deduction of the investment from the balance in the SRS account is to be made on the ground in section 10G(3G), the amount on which tax is to be collected under subsection (3) is determined in the following manner:

where A

is the amount of funds to be actually withdrawn from the SRS account on that ground, if any;

B

is the total value of the investment that is to be deducted from the balance in the SRS account; and

C

is the amount of the SRS member’s income chargeable to tax under section 10(1)(g) as determined under section 10G(3G).

[2/2016]

(3B) The Minister may, by rules made under section 7, substitute the rate in subsection (3) with a higher or lower rate (including 0%) for any SRS member or class of SRS members that is or are subject to that subsection, and subsection (3) applies to that SRS member or class of SRS members accordingly.[34/2016]

(3C) The rules mentioned in subsection (3B) may —(a)

provide that the substitute rate applies only if such conditions as may be specified in the rules are satisfied; and

(b)

prescribe different substitute rates for different SRS members or classes of SRS members.[34/2016]

(4) In subsections (3) and (3A), the value of an investment is reckoned in accordance with the regulations made under section 10G(11).[37/2014; 2/2016]

(5) If the Comptroller has given a written notice to the SRS operator requiring the SRS operator to collect tax at a higher or lower rate than 24% or the rate prescribed by the rules mentioned in subsection (3B) in substitution for it, then the reference to the rate of 24% or the substitute rate is a reference to the higher or lower rate.[2/2016; 34/2016]

[Act 33 of 2022 wef 01/01/2023]

(6) The amount of tax collected under subsection (3) is a debt due from the SRS operator to the Government and is recoverable in the manner provided in section 89.[37/2014]

(7) Where an SRS operator fails to collect the tax under subsection (3), the amount not collected is a debt due from the SRS operator to the Government and is recoverable in the manner provided in section 89.[37/2014]

(8) If the amount of tax which is required to be collected under subsection (3) is not paid to the Comptroller —(a)

by the 15th day of the second month following the month in which the date the SRS operator approves the deduction falls or by such later date as the Comptroller may allow, a sum equal to 5% of such amount of tax is payable; and

(b)

within 30 days after the time specified in paragraph (a), an additional penalty of 1% of such amount of tax is payable for each completed month that the tax remains unpaid, but the total additional penalty under this paragraph must not exceed 15% of the amount of tax outstanding.[37/2014]

(9) An SRS operator must, after collecting the tax under subsection (3), give written notice of such collection to the Comptroller by the time specified in subsection (8)(a) and in the manner mentioned in subsection (9A), and if the SRS operator fails to do so, the SRS operator shall be guilty of an offence and shall on conviction pay a penalty equal to 3 times the amount of tax so collected and shall also be liable to a fine not exceeding $10,000.[37/2014; 34/2016]

(9A) The notice under subsection (9) must be given using the electronic service, except that the Comptroller may in any particular case or class of cases permit the notice to be given in any other manner.[34/2016]

(10) The Comptroller may —(a)

compound an offence under subsection (9); and

(b)

for any good cause remit the whole or any part of the penalty payable under subsection (8).[37/2014]

(11) In this section —(a)

a reference to an SRS operator approving the deduction of an investment from the balance in an SRS account is a reference to the SRS operator approving the deduction of the sums representing the investment from the balance in the SRS account in accordance with the regulations made under section 10G(11); and

(b)

a reference to the date of approval by an SRS operator of a deduction of an investment from the balance in an SRS account is a reference to the date the SRS operator approves a deduction of the sums representing the investment from the balance in the SRS account in accordance with those regulations.[37/2014]