SRS Tax Relief

SRS Tax Relief in Singapore: An Overview

The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme that aims to encourage individuals to save for their retirement while also providing tax relief. The SRS was introduced by the Singapore government in 2001 as a means of supplementing the Central Provident Fund (CPF), the mandatory retirement savings plan for Singaporeans and Permanent Residents.

How Does the SRS Work?

The SRS allows individuals to voluntarily contribute a maximum of $15,300 per year, with the contribution limit increasing to $37,740 for foreigners and Singaporeans who are overseas. Contributions made to the SRS are eligible for tax relief, which can help to reduce an individual’s tax bill. The tax relief is available to all individuals who are taxpayers in Singapore, regardless of their employment status or nationality.

The SRS account is held with one of the three participating banks in Singapore – DBS Bank, OCBC Bank, or United Overseas Bank (UOB). The contributions made to the SRS account are invested in a range of investment products, such as stocks, bonds, and unit trusts. The investment returns earned on the SRS contributions are tax-free until the time of withdrawal.

When an individual reaches the age of 62, they can start withdrawing their SRS savings. The withdrawals are subject to tax, but at a lower tax rate than the individual’s usual income tax rate. The idea behind this is that individuals will be in a lower tax bracket when they retire, so the tax on their SRS withdrawals will be lower than if they had withdrawn the money earlier.

Advantages of the SRS

There are several advantages to contributing to the SRS. Firstly, the tax relief that individuals receive for their SRS contributions can significantly reduce their tax bill. Secondly, the investment returns earned on the SRS contributions are tax-free until the time of withdrawal, which can help to grow the savings faster. Thirdly, the SRS provides individuals with an additional savings option for their retirement, supplementing the CPF.

Additionally, the SRS can be useful for individuals who are looking to reduce their taxable income. For example, if an individual is approaching the top tax bracket, they can make an SRS contribution to bring their taxable income down and reduce their tax bill.


The SRS is a voluntary savings scheme that provides tax relief to individuals who contribute to it. The scheme allows individuals to save for their retirement while also providing them with investment options to grow their savings. The SRS can be a useful tool for individuals looking to reduce their tax bill and supplement their retirement savings. Overall, the SRS is a valuable addition to Singapore’s retirement savings landscape.