Singapore Expat: Contributing to my SRS?

As an expat in Singapore, you are eligible to contribute to the Supplementary Retirement Scheme (SRS) if you meet the following criteria:

1. You are at least 18 years old.
2. You are not an undischarged bankrupt.
3. You are not a Singapore Permanent Resident.

To contribute to your SRS account, you can follow these steps:

1. Open an SRS account with one of the three SRS operators in Singapore: DBS Bank, OCBC Bank or UOB Bank. You will need to provide your passport and employment pass to open an account.
2. Decide on the amount you want to contribute to your SRS account. The maximum contribution for the year 2023 is $15,300 for Singaporeans and Permanent Residents, and $35,700 for foreigners.
3. Transfer the funds to your SRS account using the SRS operator’s online banking platform or by visiting a branch in person.
4. Claim tax relief on your SRS contributions when you file your tax return. You can claim up to $15,300 in tax relief per year, regardless of your nationality.

If I leave Singapore can I withdraw my SRS?

Yes, you can withdraw your SRS funds if you are no longer a tax resident in Singapore. However, the withdrawal will be subject to income tax.

If you withdraw your SRS funds within the first 10 years of your first SRS contribution, the full amount of the withdrawal will be subject to income tax at the prevailing tax rate. If you withdraw your SRS funds after the first 10 years of your first SRS contribution, only 50% of the withdrawn amount will be subject to income tax.

Additionally, a 5% penalty on the withdrawn amount will be imposed for premature withdrawals before the age of 62, regardless of whether you are a tax resident or not.

It is important to note that once you withdraw your SRS funds, your SRS account will be closed, and you will not be able to make any further contributions.

If I max out my SRS in Singapore as an Expat what other options do I have open to me to Invest in terms of platforms?

If you have maxed out your SRS contributions and are looking for other investment options in Singapore, there are several platforms available that you can consider:

1. Stock Brokerage Accounts: You can open a stock brokerage account with a reputable brokerage firm in Singapore to invest in stocks, bonds, exchange-traded funds (ETFs), and other securities. Some popular brokerage firms in Singapore include DBS Vickers, UOB Kay Hian, and Phillip Securities.
2. Robo-Advisory Platforms: Robo-advisory platforms use algorithms to build and manage investment portfolios for you. These platforms are typically low-cost and can be a good option for investors who want to invest in a diversified portfolio without the need for active management. Some popular robo-advisory platforms in Singapore include StashAway, Syfe, and Endowus.
3. Unit Trusts and Mutual Funds: You can invest in unit trusts or mutual funds through a financial advisor or through online platforms such as Fundsupermart or Dollardex. These funds allow you to invest in a diversified portfolio of stocks, bonds, and other assets with relatively low minimum investments.
4. Real Estate Investment Trusts (REITs): REITs are publicly traded companies that own and manage income-generating real estate properties. You can invest in REITs through a brokerage account or through online platforms such as FSMOne or Saxo Markets.

Before investing in any platform or product, it’s important to do your research, understand the risks involved, and consult with a financial advisor if necessary.

What are some platforms that can use as an expat in Singapore to invest?

As an expat in Singapore, there are several investment platforms that you can consider to invest your money. Here are some of the popular ones:

1. DBS Vickers: DBS Vickers is a full-service brokerage firm in Singapore that offers a range of investment products, including stocks, bonds, exchange-traded funds (ETFs), and unit trusts. The platform allows you to trade securities across different markets, including Singapore, Hong Kong, and the United States.
2. Saxo Markets: Saxo Markets is an online investment platform that offers a range of investment products, including stocks, bonds, ETFs, forex, and commodities. The platform provides access to more than 35,000 financial instruments across 170 markets worldwide.
3. StashAway: StashAway is a robo-advisory platform that uses algorithms to create and manage investment portfolios for you. The platform offers globally diversified portfolios that are tailored to your risk tolerance and investment goals.
4. Endowus: Endowus is a digital investment platform that offers access to low-cost, institutional-grade investment products such as mutual funds and ETFs. The platform allows you to invest in diversified portfolios that are designed and managed by experienced investment professionals.
5. Fundsupermart: Fundsupermart is an online investment platform that allows you to invest in unit trusts and mutual funds across different asset classes and geographies. The platform provides research and analysis tools to help you make informed investment decisions.

What is the tax on Capital gains and Income for an expat in Singapore on investments?

As an expat in Singapore, the tax on capital gains and income from investments will depend on your tax residency status and the type of investment income you receive. Here’s a brief overview:

1. Capital Gains Tax: Singapore does not have a capital gains tax. This means that any gains you make from selling your investments, such as stocks, bonds, and property, are not subject to tax in Singapore.
2. Dividend Income: Dividends received from Singapore companies are tax-exempt in Singapore. However, dividends received from foreign companies may be subject to tax depending on the tax laws of the foreign country. If tax is paid on the foreign dividend income in the foreign country, you may be eligible for tax relief in Singapore under the Double Taxation Agreement (DTA) between Singapore and the foreign country.
3. Interest Income: Interest income earned on savings accounts, fixed deposits, and bonds is subject to tax in Singapore. The tax rate ranges from 0% to 22%, depending on your tax residency status and the amount of interest income you earn.
4. Capital Gains from Property: If you sell a property in Singapore, the capital gains may be subject to tax depending on your tax residency status and the holding period of the property. If you’re a non-resident, the tax rate is 20% of the net gains. If you’re a tax resident, the tax rate depends on the holding period of the property, ranging from 0% to 23.5%.

Conclusion

At Investments for expats we support expats in Singapore with platforms such as Saxo bank (0.12%) and offshore bonds such RL360 (base cost 0.067% plus 400 GBP a year on a 10 year structure) to navigate taxation with the ATO. Please see the links below for more information.

If you have any more questions please contact me using the contact forms where I can set up a call f required.

Useful Links that go into more detail on::

Offshore Bonds vs Global Platforms

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