Supplementary Retirement Scheme (SRS) for Expats

Defer tax and save for the future. 

SRS is a voluntary scheme available to all taxpayers in Singapore as an incentive to save towards retirement.  A great option for employed expats, SRS allows you to set aside a portion of your income before tax in approved investment accounts.  Expats can contribute up to $35,700 per annum, with Singaporeans and Permanent Residents allowed $15,300. 

Major benefits of an SRS account

 1.  Only 50% of the funds invested in an SRS account are taxed at withdrawal. 

 2. Taxation is assessed at your income tax level at time of withdrawal.

3. Withdrawal can be spread out over up to 10 years, creating a regular income stream in retirement.

4. Flexible investment options: SRS contributions can be used to purchase a wide variety of investments including; unit trusts, ETF's shares, bonds. Click here for more information on the investment platform

How You Can Benefit From Tax Savings Through Contribution & Withdrawal of SRS Funds

When you contribute to your SRS account, your chargeable income will be reduced by the amount of your contribution.

For example, if you have earned $250,000, your income tax bill will be $29,750.

If you choose to contribute $35,700 to your SRS account, your chargeable income will be reduced to $214,300 ($250,000 – $37,500) and your income tax payable will become $23,324. This is a tax saving of $6,426

How to open a SRS account

The requirement is straightforward.

  • All Singaporeans, Permanent Residents (PRs) and foreigners
  • At least 18 years old
  • Not an undischarged bankrupt

There are three SRS operators (DBS/POSB, UOB & OCBC). You can register an account with any of them.

How to invest your SRS funds

After you have created your SRS account, you just need to use a registered platform to link to the SRS contributions. Buying and selling assets can then transacted on the platform. The platforms will have restricted fund ranges so you can't buy any asset. Expat Financial Planning use a platform that has access to 550+ funds. Speak to us today to explore this further.


When you withdraw your money from the SRS account, 50% of the amount that you withdraw is taxable if the withdrawal is after the retirement age (which is 62)

You can withdraw from your SRS Account at any time before age 62, this however is subject to a 5% penalty for early withdrawal. 100% of the amount withdrawn will also be subjected to tax for that year.

If you withdraw $100,000 then $50,000 will be subject to income tax. This would be $1,250 tax charge. Plus the 5% penalty. If you have other taxable income then this will get added to it. The SRS must be withdrawn over 10 years.

If you are no longer a Singapore resident then the tax rate will be the non-resident rate of 15%. If you had $100,000 in the account and withdraw all of this when you left Singapore. 50% would be subject to tax or $50,000 and the tax payment would be $7,500. As an expat the 5% penalty does not apply.      


If you have high earnings and want to create a retirement fund whilst reducing your Singapore income tax bill then explore this further. It is another stream of income in retirement built around sound financial planning.