Anonymous
Is it worth to keep SRS for years after leaving Singapore, as an Expat? What is the recommended approach?
SRS early withdrawal penalty is 5% + Tax on whole amount (say 15%)
After 10 years, it will be no penalty + Tax on 50% but at 22% rate
Also, are there any other implications, challenges to operate, maintain account and later in withdrawal while being out of country
Looking for suggestions, experience. Thanks.
1
Discussion (1)
What are your thoughts?
Learn how to style your text
Alex
22 Oct 2021
Senior Manager at Great Eastern Financial Adviser
Reply
Save
Write your thoughts
Related Articles
Related Posts
Related Posts
If you are no longer a Singapore resident then the tax rate for non-resident will be 15% on the 50% of withdrawals and as an expat the 5% penalty does not apply.
So if let say you have 100k inside, 50k is taxable at 15% which will make it 7.5k
But you must have at least 10years holding period of the SRS account from your first Conroe until.
If you do not wish to withdraw in lump sum then use the money to invest then perhaps plan it out the payment process in 10 years after age 62. It could be quite a good stream of income.
All amount must be withdraw in 10 years, SRS account is deemed closed at the end of the 10th year of the 10-year withdrawal period.
Or you can apply to your SRS operator to withdraw investments from their SRS account without having to liquidate your investment. This is only applicable on withdrawals on or after the statutory retirement age