Singapore legislation

Regulation 14B

of Income Tax (Supplementary Retirement Scheme) Regulations 2003

Regulation 14B

Valuation of investment deducted from balance of SRS account

Amended byS 405/2015 wef 01/07/2015

Subregulation 1

This regulation states what the value of an investment that is deducted from the balance in an SRS account is for the purposes of sections 10L(1), (2), (3), (3D) and (3E) and 45EA of the Act.

Subregulation 2

Where an investment is deducted pursuant to an application under regulation 14A in the circumstances set out in regulation 14A(2)(a), the investment is to be valued as follows:

(a)

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

(b)

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;

(c)

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

(d)

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

(e)

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;

(f)

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;

(g)

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

(h)

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

Subregulation 3

For the purposes of paragraph (2), if the investment is in a foreign currency, the SRS operator must reflect the value of the investment in Singapore dollars using the exchange rate prevailing on the application receipt date.

Subregulation 4

Where an investment is deducted pursuant to an application under regulation 14A in the circumstances set out in regulation 14A(2)(b), the investment is to be valued for the purposes of section 45EA of the Act in accordance with regulation 15(2) and (3).

Subregulation 5

Amended byS 405/2015 wef 01/07/2015

Despite paragraphs (2) and (3), if the SRS operator is unable to value the investment under paragraphs (2) and (3), the SRS operator must inform the Comptroller who may determine the value of the investment using any other reasonable basis.