Income Tax Act 1947 · 2020 Revised Edition · Part 10 · Ascertainment of Chargeable Income and Personal Reliefs
40C. Relief for non‑resident SRS members
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This section applies to a person who, in any year of assessment, is not resident in Singapore and who makes any withdrawal from the person’s SRS account which is deemed to be income subject to tax under section 10G or derives such income and income from any other source in the year preceding that year of assessment which does not include —
income from the exercise of any employment in Singapore; or
income derived as a public entertainer within the meaning of section 40A.
Any person to whom this section applies is, if the tax payable by the person in respect of that year of assessment is attributable to withdrawals from the person’s SRS account, allowed relief in respect of that year of assessment in the following manner:
where the withdrawals from the person’s SRS account are the person’s only source of income, by reduction of the rate of tax to 15% on every dollar of the chargeable income;
where the person possesses any other source of income in Singapore and the total assessable income exceeds the statutory income attributable to the withdrawals from the person’s SRS account, by reduction of the rate of tax to 15% on such part of the chargeable income as bears the same proportion to the total chargeable income as the statutory income attributable to the withdrawals from the person’s SRS account bears to the total assessable income;
where the person possesses any other source of income in Singapore and the total assessable income is equal to or less than the statutory income attributable to the withdrawals from the person’s SRS account, by reduction of the rate of tax to 15% on every dollar of the chargeable income.
The relief available to any person under subsection (2) must be so limited that the tax payable in respect of such income must not be less than that which would be payable by a resident of Singapore in the same circumstances.
To avoid doubt, for the purpose of subsection (3), section 39A applies to the computation of the tax that would be payable by a resident of Singapore in the circumstances mentioned in that subsection.
[Deleted by Act 41 of 2020]
In this section —
“statutory income attributable to the withdrawals from the person’s SRS account” means the statutory income of a person derived from such source as ascertained under section 35(1);
SRS account
“SRS account” means an account opened with an SRS operator by an SRS member;
“total assessable income” means the remainder of the statutory income of a person after the deduction allowed under section 37(3)(a) has been made;
“withdrawals from the person’s SRS account” means all withdrawals from the SRS account of a person which are deemed to be income subject to tax under section 10G.