Income Tax (Supplementary Retirement Scheme) Regulations 2003

a reference to an SRS member making a contribution to his SRS account includes his employer making a contribution to that account on his behalf;

a reference to a contribution of, by or from an SRS member to his SRS account includes a contribution by his employer to that account on his behalf. (3) In these Regulations, a reference to an investment, unless the context otherwise requires, includes a deposit.(4) In these Regulations —

a withdrawal from an SRS account;

a withdrawal of moneys from an SRS account; or

a withdrawal of SRS funds from an SRS account,includes a deduction of a sum representing an investment from the balance in the SRS account that is approved under regulation 14A.

exercise due diligence and reasonable care in discharging the duties, obligations and requirements set out in the Act relating to the SRS and these Regulations;

ensure that its operation of the SRS is audited as part of the annual audit of its business;

at any time, maintain comprehensive records and documents pertaining to its operation of the SRS —

for 5 years of assessment, in the case of records and documents pertaining to year of assessment 2008 or any subsequent year of assessment; or

for 7 years of assessment, in the case of records and documents pertaining to any year of assessment before the year of assessment 2008;

ensure that the sums standing in an SRS account maintained with the SRS operator are not co-mingled with funds standing in any other account, whether maintained with that SRS operator or any other person;

provide each of its SRS members with a statement at least once a year showing the opening and closing balances of their SRS accounts and the details of their transactions carried out during the year;

reflect transactions in an SRS account maintained with the SRS operator in Singapore dollars and for this purpose use the exchange rate prevailing on the date of a foreign currency transaction in reflecting that transaction in its Singapore dollar equivalent; and

upon receipt of information of the death of an SRS member, forward such information to the Comptroller immediately.

information relating to contributions to and withdrawals from SRS accounts maintained with the SRS operator for each year, in a form and manner acceptable to the Comptroller, by 15th February of the following year or by such other date as may be determined by the Comptroller;

the names of SRS members having SRS accounts with the SRS operator and the balance remaining in their SRS accounts (excluding any life annuity) that are deemed to be withdrawn under section 10L (6), (7) or (9) of the Act for each year, in a form and manner acceptable to the Comptroller, by 15th February of the following year or by such other date as may be determined by the Comptroller; and

such other information and documents relating to the operation of the SRS by the SRS operator as may be required by the Comptroller.

information on —

the size of the SRS funds under its administration;

the size of investments, including deposits, in such asset classes as may be required by the Minister; and

the total number of SRS accounts maintained with the SRS operator; and

such other information and documents relating to its operation of the SRS as may be required by the Minister.

fails, without reasonable excuse, to deduct any amount of tax or penalty which it is required to deduct; or

makes any wrongful or unauthorised payment under the SRS,the SRS operator shall pay to the Comptroller any tax undercharged or the penalty, as the case may be.

the Minister may, at any time, by notice in writing to an SRS operator, revoke the appointment of the SRS operator; or

an SRS operator may, at any time, by notice in writing to the Minister, relinquish its appointment as an SRS operator.

inform all its SRS members that its appointment as an SRS operator is being terminated and that it will transfer their SRS accounts to any other SRS operator of their choice;

complete the transfer of SRS accounts maintained with it within 6 months from the date of the notice referred to in paragraph (1)(a) or (b), or such other period as the Minister may allow;

continue to discharge its duties and obligations under the Act and these Regulations until all SRS accounts maintained with it have been transferred to other SRS operators; and

bear all costs relating to the transfer of its SRS accounts to other SRS operators.

has attained the age of 18 years;

is not an undischarged bankrupt; and

is not mentally disordered and is capable of managing himself and his affairs.

his consent for the SRS operator to release to the Comptroller or Minister the information specified in regulation 4(2) and (3); and

such information or documents relevant to the opening of the SRS account as the SRS operator may require.

he already has an SRS account (including one that has been suspended) with the same or another SRS operator;

he has a pending application with another SRS operator to open an SRS account; or

he previously had an SRS account with the same or another SRS operator and all the moneys in the account had been withdrawn —

on the ground that he is physically or mentally incapacitated from ever continuing in any employment, is either (if withdrawal is made before 1st March 2010) found to be of unsound mind or (if withdrawal is made on or after that date) mentally disordered and incapable of managing himself or his affairs, or is suffering from a terminal illness or disease; or

on or after reaching the prescribed retirement age prevailing at the time of his first contribution.

obtaining a declaration from the applicant that —

he has no other SRS account (including one that has been suspended) at the time of application or, if he has an SRS account with another SRS operator, he has already taken all the necessary steps to close that account;

he does not have a pending application with another SRS operator to open an SRS account at that time; and

he did not previously have an SRS account all the moneys in which were withdrawn on the ground referred to in paragraph (3)(c)(i), or on or after reaching the age referred to in paragraph (3)(c)(ii); and

informing the applicant of the conditions of the SRS, including the following:

that an SRS member cannot have an SRS account with more than one SRS operator, a suspended SRS account being treated as an SRS account;

the obligations of an SRS member under regulation 11(1);

that the maximum amount of deduction under section 39(2)(o) of the Act is subject to the SRS contribution cap applicable to that SRS member;

that SRS withdrawals are chargeable to tax in accordance with section 10L of the Act, and the circumstances in which a 5% penalty will be imposed under the Act on withdrawals;

that an SRS member cannot contribute to his SRS account if he had previously made a withdrawal from this or a previous SRS account of his on the ground referred to in paragraph (3)(c)(i), or on or after reaching the age referred to in paragraph (3)(c)(ii); and

that an SRS member is subject to Part XX of the Act if he contravenes any provision of the Act relating to the SRS and regulation 20 if he contravenes these Regulations.

the applicant already has an SRS account with the SRS operator, including one that has been suspended;

the applicant previously had an SRS account with the SRS operator and made a withdrawal from that account on the ground referred to in paragraph (3)(c)(i), or on or after reaching the age referred to in paragraph (3)(c)(ii), unless the SRS account to be opened is to replace an existing SRS account opened with another SRS operator; or

he knows or has reason to believe that any part of the declaration referred to in paragraph (5)(a) is false in a material particular.

transfer the sum standing in the SRS account of that SRS member to the SRS operator specified by the SRS member; and

upon such transfer, close the existing SRS account of that SRS member and hand over to the other SRS operator sufficient records and documents pertaining to that SRS account to enable the other SRS operator to operate the new SRS account of the SRS member.

opens an SRS account without obtaining the consent of an applicant referred to in paragraph (2)(a); or

fails to comply with paragraph (5)(a), (5B) or (6),shall be guilty of an offence.

shall not make any further contribution to his SRS account;

shall not use his SRS funds to acquire any investment, including the making of a deposit;

shall return to his SRS account —

all gains or profits arising from any investment (other than a deposit) acquired using his SRS funds during the period of suspension; and

all proceeds from the disposal of such investments during the period of suspension; (ca)shall return to his SRS account all deposits made using SRS funds during the period of suspension, together with all gains and interest derived from such deposits; and

shall only be allowed to make such withdrawals from his SRS account as the Comptroller may direct.

on the ground that he —

was physically or mentally incapacitated from ever continuing in any employment;

was either (in the case of a withdrawal before 1st March 2010) found to be of unsound mind or (in the case of a withdrawal on or after that date) mentally disordered and incapable of managing himself or his affairs; or

was suffering from a terminal illness or disease; or

on or after reaching the prescribed retirement age prevailing at the time of his first contribution.

the SRS member has instructed or authorised the employer in writing to make that contribution on his behalf, and such instruction or authorisation has not been revoked; and

the contribution consists solely of the SRS member’s gains or profits from any employment with that employer.

if the SRS contribution cap applicable to him is nil under regulation 9(1)(a); or

in any other case, to the extent that it exceeds the SRS contribution cap applicable to the SRS member for that year.

shall accept contributions of an SRS member in any year only after the SRS contribution cap applicable to the SRS member for that year has been computed, and shall credit such contributions into the SRS account of the SRS member;

shall not accept any contribution from an SRS member in any year to the extent that it exceeds the contribution cap applicable to the SRS member for that year as computed by the SRS operator under regulation 9(3) to (10) (whichever is applicable); and

shall not accept any contribution from an SRS member if it knows or ought to know that the SRS contribution cap applicable to him is nil under regulation 9(1)(a).

shall be nil if he had at any time made a withdrawal from his SRS account, including any previous SRS account of his —

on the ground that he was physically or mentally incapacitated from ever continuing in any employment, was either (in the case of a withdrawal before 1st March 2010) found to be of unsound mind or (in the case of a withdrawal on or after that date) mentally disordered and incapable of managing himself or his affairs, or was suffering from a terminal illness or disease; or

on or after reaching the prescribed retirement age prevailing at the time of his first contribution;

in any other case, shall be computed in accordance with paragraphs (3) to (10), and shall be calculated by the SRS operator of the SRS member.

15% for an SRS member who is a citizen of Singapore or a Singapore permanent resident; and

35% for an SRS member who is not a citizen of Singapore or a Singapore permanent resident.

approved under section 5 of the Act (other than the Central Provident Fund or any pension or provident fund designated by the Minister under section 39(8) of the Act);

established at any time before 1st October 2008; and

which is to be dissolved,designate the fund as a qualifying fund for the purposes of paragraph (9), subject to such terms and conditions as he may impose.

is a member of a qualifying fund that is dissolved on or after 1st October 2008;

is entitled in any year to receive a sum of money from that qualifying fund by reason of its dissolution; and

in that year (or such other year as the Minister or such person as he may appoint may in exceptional circumstances approve) makes a contribution to his SRS account using that sum of money or any part of it,shall be increased by the amount referred to in paragraph (10) in the year such contribution is made.

(A x B x C) – D; or

E,where A is the relevant income base referred to in paragraph (5);B is —

15% where the SRS member is a citizen of Singapore or a Singapore permanent resident on the date he makes the contribution referred to in paragraph (9)(c); or

35% in any other case;C is the number of years (a part of a year being treated as a full year) between 2001 and the year immediately preceding the year referred to in paragraph (9)(b) (both years inclusive);D is the aggregate amount of SRS contributions made by the SRS member in all the years (including a part of a year) immediately preceding the year referred to in paragraph (9)(b); andE is the sum of money which the SRS member is entitled to receive from the qualifying fund by reason of the dissolution of the fund,except that the amount computed in accordance with sub-paragraph (a) shall be treated as nil if D exceeds the product of A, B and C.

an SRS member ceases to be a citizen of Singapore or a Singapore permanent resident in the year in which he has made contributions to his SRS account; and

he makes a request in that year to his SRS operator to re-compute his SRS contribution cap for that year,the SRS operator shall re-compute the contribution cap in accordance with regulation 9 on a pro-rata basis, taking into account the number of days the SRS member was, and was not, a citizen of Singapore or a Singapore permanent resident in that year.

an SRS member becomes a citizen of Singapore or a Singapore permanent resident in any year; and

in that year informs his SRS operator that he has become a citizen of Singapore or a Singapore permanent resident,the SRS operator shall re-compute the contribution cap in accordance with regulation 9 on a pro-rata basis, taking into account the number of days the SRS member was, and was not, a citizen of Singapore or a Singapore permanent resident in that year, and shall refund to him any difference between his contribution made in that year and the re-computed contribution cap.

an SRS member becomes a citizen of Singapore or a Singapore permanent resident in any year; and

in the following year informs his SRS operator that he —

has become a citizen of Singapore or a Singapore permanent resident; and

intends to make, or to instruct or authorise his employer to make on his behalf, contributions to his SRS account in that following year,the SRS operator shall at his request re-compute his SRS contribution cap for the year in which he becomes a citizen of Singapore or a Singapore permanent resident in accordance with regulation 9 on a pro-rata basis, taking into account the number of days he was, and was not, a citizen of Singapore or a Singapore permanent resident in that year.

use his SRS funds as collateral, security or guarantee for any financial transaction; (b)use any investment (other than a deposit) acquired using his SRS funds as collateral, security or guarantee for any financial transaction, or assign such investment to another person;

if he has made a deposit using SRS funds, use as collateral, security or guarantee for any financial transaction, or assign to another person —

the full amount in the account in which the funds are deposited; or

any amount in the account if the amount in the account after deducting the first-mentioned amount is less than the sum of the SRS funds and all gains and interest derived therefrom, less any amount that has been transferred to the member’s SRS account; or

make a nomination under section 49L(2) of the Insurance Act (Cap. 142) in respect of any life insurance product acquired using his SRS funds.

gold certificates offered by a financial institution;

any investment product within the meaning of the Financial Advisers Act (Cap. 110) that is offered by or through a financial institution.

it is a single premium insurance product; or

it provides life insurance coverage (including total and permanent disability benefits) not exceeding 3 times the single premium,and the SRS member shall not in any event use his SRS funds to acquire any life insurance product providing for critical illness, health or long term care.

ensure that the SRS funds of its SRS members are used only in the manner permitted by paragraph (3);

ensure that the amount standing to an account in which a deposit has been made using SRS funds of an SRS member does not at any time fall below the sum of the SRS funds deposited and all gains and interest derived therefrom, less any amount that has been transferred to the member’s SRS account;

ensure that on the closure of an account in which a deposit has been made using SRS funds of an SRS member, a sum comprising the amount of the SRS funds deposited and all gains and interest derived therefrom, less any amount that has been transferred to the member’s SRS account, is transferred to the member’s SRS account;

ensure that, on the instruction of an SRS member who has made a deposit of SRS funds to transfer from the account in which the SRS funds are deposited to his SRS account a sum comprising not more than the amount of the SRS funds deposited and all gains and interest derived therefrom (less any amount that has been transferred to his SRS account), the sum is so transferred;

subject to regulation 12(4), ensure that all gains or profits derived from investments (other than any deposit) acquired using SRS funds of any of its SRS members, and all proceeds of sale of such investments, are returned to his SRS account;

not discriminate against any deposit with any financial institution or any investment referred to in paragraph (3) created or distributed by any financial institution;

endeavour to offer settlement facilities to SRS members for as wide a range of investments referred to in paragraph (3)(a) and (b) as possible;

settle each investment transaction (other than a transaction on a deposit) individually and not allow contra trades or contra settlement; and

upon the death or bankruptcy of any of its SRS members, complete the settlement of any transaction initiated by that SRS member before such death or bankruptcy in accordance with the relevant law.

provide such information to an SRS operator as may be necessary to enable the SRS operator to fulfil its duties and obligations under the SRS;

ensure that the amount standing to an account with the provider in which a deposit has been made using SRS funds of an SRS member does not at any time fall below the sum of the SRS funds deposited and all gains and interest derived therefrom, less any amount that has been transferred to the member’s SRS account; (c) ensure that on the closure of an account with the provider in which a deposit has been made using SRS funds of an SRS member, a sum comprising the amount of the SRS funds deposited and all gains and interest derived therefrom, less any amount that has been transferred to the member’s SRS account, is transferred to the member’s SRS account;

ensure that on the instruction of an SRS member who has made a deposit of SRS funds to transfer from the account in which the SRS funds are deposited to his SRS account a sum comprising not more than the amount of the SRS funds deposited and all gains and interest derived therefrom (less any amount that has been transferred to his SRS account), the sum is so transferred; and

subject to paragraph (4), ensure that all gains or profits derived from any investment (other than a deposit) acquired from the provider using the SRS funds of an SRS member, and all proceeds of sale of such investment are returned to the SRS account of the member.

shall comply with regulation 4(1)(a) to (d), (2) and (3) as if it were an SRS operator in respect of annuity payments made by the financial product provider to an SRS member under a life insurance policy; and

shall be liable under those regulations in the same way as if the financial product provider were an SRS operator.

forward such information to the Comptroller or the SRS operator of that SRS member immediately;

make payment under any insurance policy acquired using the SRS funds of such SRS member in accordance with the relevant law;

in making payment to beneficiaries under any insurance policy taken up by any deceased SRS member who is not a citizen of Singapore, account to the Comptroller for the withholding tax imposed under section 45E of the Act, and be subject to all the requirements relating to such withholding tax; and

if the death of the SRS member occurred after the end of the period stipulated under section 10L(5) of the Act, furnish information relating to the payments referred to under sub-paragraphs (b) and (c) in a form and manner acceptable to the Comptroller, by 15th February of the year following the year of payment or by such other date as the Comptroller may allow.

fails, without reasonable excuse, to deduct any amount of tax or penalty which it is required to deduct; or

makes any wrongful or unauthorised payments under the SRS,the financial product provider shall pay to the Comptroller the tax undercharged or the penalty, as the case may be.

a declaration that he is not a citizen of Singapore or a Singapore permanent resident; and

a letter from the Immigration and Checkpoints Authority confirming that the SRS member is no longer a citizen of Singapore or a Singapore permanent resident.

is physically or mentally incapacitated from ever continuing in any employment;

is mentally disordered and incapable of managing himself or his affairs; or

is suffering from a terminal illness or disease.

where the deduction would amount to a withdrawal referred to in section 10L(3)(a), (b) or (c) of the Act; or

at any time after any balance remaining in the member’s SRS account is deemed withdrawn under section 10L(6) or (7) of the Act, or the sums standing in the member’s SRS account are deemed withdrawn under section 10L(9) of the Act.

the sums representing the investment to be deducted from the balance in the SRS account can be separately identified; and

the investment to be deducted from the balance in the SRS account can be separately valued in accordance with regulation 14B.

where the SRS member is a citizen of Singapore, the application receipt date; and

where the SRS member is not a citizen of Singapore, the date on which the SRS operator has collected tax from the SRS member in accordance with section 45EA of the Act.

in the case of listed shares, warrants, loan stocks and bonds, the closing price of the investment as at the application receipt date;

in the case of listed shares, warrants, loan stocks and bonds that are suspended, the last traded price of the investment before the application receipt date;

in the case of unlisted shares, the net asset value of the shares as at the application receipt date;

in the case of unit trusts, the published price or last available price of the unit trusts as at the application receipt date;

in the case of fixed deposits with financial institutions maturing after the date of the application receipt date, the principal amount of the fixed deposits;

in the case of deposits with financial institutions (other than fixed deposits), the principal amount of the deposits plus all interest that has accrued up to the application receipt date;

in the case of insurance products, the surrender value of the products as at the application receipt date; or

in the case of any other investment, the market value of the investment on the application receipt date.

where the application was made in the circumstances referred to in regulation 14A(2)(a) —

the application receipt date; and

the value of the investment as determined under regulation 14B(2) and (3), or regulation 14B(5), whichever may be applicable; or

where the application was made in the circumstances referred to in regulation 14A(2)(b) —

the date of the deemed withdrawal under section 10L(6), (7) or (9) of the Act, as the case may be; and

the value of the investment as determined under regulation 14B(4).

that it proposes to approve the application;

that the application will only be approved by the SRS operator after the SRS operator has collected tax from the SRS member in accordance with section 45EA of the Act; and

either —

where the application was made in the circumstances referred to in regulation 14A(2)(a) —

the application receipt date; and

the value of the investment as determined under regulation 14B(2) and (3), or regulation 14B(5), whichever may be applicable; or

where the application was made in the circumstances referred to in regulation 14A(2)(b) —

the date of the deemed withdrawal under section 10L(6), (7) or (9) of the Act, as the case may be; and

the value of the investment as determined under regulation 14B(4).

in the case of listed shares, warrants, loan stocks and bonds, the closing price of the investment as at that date;

in the case of listed shares, warrants, loan stocks and bonds that are suspended, the last traded price of the investment before that date;

in the case of unlisted share, the net asset value of the shares as at that date;

in the case of unit trusts, the published price or last available price as at that date;

in the case of fixed deposits with financial institutions maturing after that date, the principal amount of the fixed deposits;

in the case of deposits with financial institutions (other than fixed deposits), the principal amount of the deposit plus all interest accrued up to that date;

in the case of insurance products, the surrender value as at that date as determined by the insurance companies; and

in the case of any other investment, the market value of the investment as at that date.

in the case of listed shares, warrants, loan stocks and bonds, the closing price of the investment as at the date of the deemed withdrawal;

in the case of listed shares, warrants, loan stocks and bonds that are suspended, the last traded price of the investment before the date of the deemed withdrawal;

in the case of unlisted shares, the net asset value of the shares as at the date of the deemed withdrawal;

in the case of unit trusts, the published price or last available price as at the date of the deemed withdrawal;

in the case of fixed deposits with financial institutions maturing after the deemed withdrawal date, the principal amount of the fixed deposits;

in the case of deposits with financial institutions (other than fixed deposits), the principal amount of the deposit plus all interest accrued up to the date of the deemed withdrawal;

in the case of insurance products, the surrender value as at the date of the deemed withdrawal or the actual amount paid out (in the case of death), as determined by the insurance companies; and

in the case of any other investment, the market value of the investment as at the date of the deemed withdrawal.

made his first withdrawal under section 10L(3)(b) of the Act from his SRS account; and

subsequently made one or more contributions to his SRS account during the period between 1st October 2008 and 31st December 2008 (both dates inclusive),then any withdrawal made under 10L(3)(b) of the Act prior to the date of the first of his contributions referred to in paragraph (b) shall be disregarded for the purposes of those provisions.

made one or more withdrawals under section 10L(3)(b) of the Act of all the funds standing to his SRS account and closed his SRS account; and (b)subsequently opened another SRS account during the period between 1st October 2008 and 31st December 2008 (both dates inclusive),then the withdrawal or withdrawals shall be disregarded for the purposes of those provisions.