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SRS and Income Tax for Foreigners

Sir ma'am ask ko sana help nyo sa pag confirm kung tama pagkaka intindi ko .

Income tax
- if will work in sg for more than 6mos, will be categorized as resident tax rate (see tax table on iras website)
- will get tax relief if opted to join srs

SRS
- can be withdrawn any time
- if foreigner and it has been less than 10yrs since first contribution, tax on 100% of sum to be withdrawn plus 5% penalty is applicable
- can choose whether to withdraw in lumpsum or staggered

Tia!

Comments

  • @mainamaina
    Good day!
    on Income Tax- yes you need to pay your tax after 6 months.

    on SRA, PR ka na ba?
    Tax Obligations for SRS Withdrawal
    Withholding Tax for Non-Singaporean SRS Account Holders If a foreigner or Singapore Permanent Resident (SPR) has applied to withdraw from his SRS account, 50% or 100% of the withdrawn amount, depending on the type of the withdrawal will be subject to a withholding tax. Requirements for SRS Operators The SR

    Calculating Withholding Tax
    If a foreigner or Singapore Permanent Resident (SPR) has $300,000 in his SRS account by the retirement age of 62, for example, and decides to withdraw the whole amount, he will be taxed on half of the amount withdrawn. SRS Withdrawn $300,000 Amount Subject To Tax 50% x $300,0
  • Sulit lang ang SRS kung na sa higher tax bracket ka.

    Foreigners can withdraw after 10 straight years, providing foreigner status ka pa rin after said 10 years. And it must be withdrawn as a lump sum (not spread out) and 50% will be taxable depending sa income tax rate mo at that time. So if you want to time it, mag resign ka after 10 years, then withdraw on Jan 1 the following year.
  • Or kahit hindi ka mag intend to stay here for 10 years. If you're in one of the higher tax bracket incomes, from day 1 mag open ka ng SRS account lagyan mo ng 1 SGD. Timing mo sya na mag resign ka end of year. Max mo contribution mo end of that year. Save on the higher tax bracket tax for that year. Then make withdraw Jan 1 even with the 5% penalty it will still be less kung na sa higher tax bracket income ka.
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