Are you working in Singapore and often feel that:

The higher your income, the more tax you pay due to rising marginal tax rates?

CPF (Central Provident Fund) seems stable, but as a foreigner you are not eligible?

✅ Here’s the good news: The Supplementary Retirement Scheme (SRS) is designed to solve this problem! Since CPF is only available to citizens and PRs, and has contribution limits, the SRS was created as an additional retirement savings plan for both locals and foreigners.

Whether you are a Singaporean, PR, or an EP foreign professional, SRS helps you legally save taxes and grow your investments, keeping more wealth in your own hands.

Why Choose SRS?

SRS is a voluntary savings scheme that allows you to set aside funds for retirement on top of CPF contributions. Unlike CPF, SRS is flexible and optional.

1. Direct Tax Savings

Contribution limits differ by residency status:

● Singapore Citizens / PRs: up to SGD 15,300 annually

● Foreigners (EP holders, etc.): up to SGD 35,700 annually

? Every dollar contributed to SRS directly reduces your taxable income for that year.

2. Investment Growth

Beyond tax savings, SRS also lets your retirement funds grow through investments. While the base interest is only 0.05%, you can channel your SRS funds into multiple instruments to unlock higher potential.

✅ Investment options: funds, stocks, bonds, ETFs, insurance products, fixed deposits, robo-advisors, and more

✅ All investment gains are exempt from capital gains tax

3. Withdrawal Benefits

● Only 50% of withdrawals are taxable at retirement

● Foreigners can withdraw without penalty after 10 years of account opening

● With lower retirement income, your effective tax rate may even drop to near zero

? Example: If your total withdrawal is between SGD 100,000–400,000 and you spread it over 10 years, you may pay zero tax, as the annual amount stays below the taxable threshold.

Case Study: EP Foreigner, Senior Executive

Let’s assume you are an EP holder earning SGD 200,000 annually ?

? Immediate savings: SGD 5,355 in taxes for the year!

If you keep this up for 10 years:

● Annual SRS contribution = SGD 35,700

● Total tax savings = SGD 5,355 × 10 = SGD 53,550

● Assuming 5% annual investment growth, the funds could grow to ~SGD 460,000

● With 50% tax exemption at retirement, your final tax burden is even lower

? In short, you are getting:

✅ Immediate tax savings

✅ Tax-free investment growth

✅ Only 50% tax on withdrawals later

CPF ≠ SRS

● CPF: Mandatory, only for Citizens/PRs, with capped contributions

● SRS: Voluntary, higher limits, and available to EP holders too

? Using both together (if eligible) gives you the optimal retirement + tax-saving strategy.

Key Things to Note

● Deadline:Contributions must be made before 31 Dec each year

● Tax Relief Cap: SGD 80,000 annual relief cap (including SRS and other deductions)

● Withdrawal Planning: Early withdrawal = 5% penalty + full taxation, so aim for long-term holding

● Status Changes: If you switch from EP to PR/Citizen, update your SRS bank to avoid over-contributions

How to Open an SRS Account?

Simply visit any of the three major local banks:

● DBS: 

https://www.dbs.com.sg/personal/investments/srs-and-cpf/supplementary-retirement-scheme

● UOB: 

https://www.uob.com.sg/personal/invest/srs-account.page

● OCBC: OCBC Supplementary Retirement Scheme (SRS) Account | Tax Savings

Opening takes just a few minutes, and you can enjoy tax relief within the same year.

Why Act Now?

● Contribution limits are annual and non-cumulative – unused allowance is wasted

● The earlier you start, the more you benefit from compounding

● If you only think about it during tax season, it’s already too late!

? If you’re a high-earning EP holder in Singapore and want to:

● Save taxes legally

● Grow investments wisely

● Plan your retirement early

? Contact us today to get your personalized SRS tax-saving assessment!