SRS Tax Savings in Singapore: 5 Mistakes to Avoid
Shows how much tax you save by contributing to the Supplementary Retirement Scheme. The cap is S$15,300 a year for citizens and PRs and S$35,700 for foreigners. The maths is not complicated, but a handful of errors come up again and again in this and related tax & gst calculations. Here is what to watch for.
Reliefs lower chargeable income before rates apply. Common ones include earned income relief, CPF relief for employee contributions, parent and handicapped parent relief, working mother's child relief, NSman relief, course fees relief, and relief for SRS contributions and CPF cash top-ups. Total personal reliefs are capped at S$80,000 a year.
You are generally a tax resident if you are a citizen or PR who normally lives here, or a foreigner who has stayed or worked in Singapore for at least 183 days in the calendar year. Non-residents do not get personal reliefs and are taxed differently, which is why residency status matters so much for expatriates.
1. Assuming non-residents pay resident rates
Non-resident employment income is taxed at the higher of 15% or resident rates, without reliefs.
2. Using last year's rates
Rates and rebates change in the Budget, so check the year of assessment.
3. Applying the top rate to all income
Singapore tax is progressive: each band is taxed at its own rate, so your effective rate is well below your marginal rate.
4. Calculating GST on the menu price only
With '++' pricing, GST is charged on the food plus the service charge.
5. Ignoring the relief cap
Total personal reliefs are capped at S$80,000 a year.
The correct method
Tax saved = tax(chargeable income) − tax(chargeable income − SRS contribution).
For example, with these inputs:
- Chargeable income before SRS (S$): 120,000
- SRS contribution (S$): 15,300
the calculator returns:
- Tax without SRS: S$7,950.00
- Tax with SRS: S$6,190.50
- Tax saved: S$1,759.50
Related calculations
- Salary Income Tax Estimator: Estimates a resident employee's annual income tax from monthly salary and bonus, allowing for CPF relief and earned income relief.
- Non-Resident Income Tax Calculator: Non-resident employees pay the higher of 15% flat or progressive resident rates on employment income, without personal reliefs.
- GST Calculator (9%): Adds Singapore's 9% Goods and Services Tax to a price.
- Remove GST Calculator (Reverse GST): Works backwards from a GST-inclusive price to show how much of it is GST.
The SRS Tax Savings Calculator applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: SRS Tax Savings Calculator