Income Tax (Supplementary Retirement Scheme) Regulations 2003

No. S 30

Income Tax Act

(CHAPTER 134)

Income Tax (Supplementary Retirement Scheme) Regulations 2003

In exercise of the powers conferred by section 10L(11) of the Income Tax Act, the Minister for Finance hereby makes the following Regulations:

Citation and commencement

1.—(1) These Regulations may be cited as the Income Tax (Supplementary Retirement Scheme) Regulations 2003.

(2) These Regulations shall, with the exception of regulation 9(3) to (6), come into operation on 13th January 2003.

(3) Regulation 9(3) to (6) shall be deemed to have come into operation on 1st April 2001.

Definitions

2. In these Regulations —

“additional wages” and “ordinary wages” have the same meanings as in the First Schedule to the Central Provident Fund Act (Cap. 36);

“financial product provider” means any financial institution in Singapore offering savings, investment or any other financial products for investment under the SRS;

“year” means any year from 1st January to 31st December.

Establishment of Supplementary Retirement Scheme

3. As from 1st April 2001, there shall be established a scheme called the Supplementary Retirement Scheme.

SRS operators

4.—(1) An SRS operator shall —

(a)	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;
(b)	ensure that its operation of the SRS is audited as part of the annual audit of its business;
(c)	at any time, maintain comprehensive records and documents pertaining to its operation of the SRS for 7 years of assessment;
(d)	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;
(e)	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;
(f)	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
(g)	upon receipt of information of the death of an SRS member, forward such information to the Comptroller immediately.

(2) An SRS operator shall furnish to the Comptroller —

(a)	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;
(b)	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
(c)	such other information and documents relating to the operation of the SRS by the SRS operator as may be required by the Comptroller.

(3) An SRS operator shall furnish to the Minister at such time as the Minister may require —

(a)

information on —

(i)	the size of the SRS funds under its administration;
(ii)	the size of investments in such asset classes as may be required by the Minister; and [S 521/2010 wef 15/09/2010]
(iii)	the total number of SRS accounts maintained with the SRS operator; and

(b)

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

(4) An SRS operator who fails to comply with paragraph (1), (2) or (3) shall be guilty of an offence.

(5) Where an SRS operator, in contravention of any provision of the Act relating to the SRS or these Regulations —

(a)	fails, without reasonable excuse, to deduct any amount of tax or penalty which it is required to deduct; or
(b)	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.

Termination of appointment of SRS operator

5.—(1) The appointment of an SRS operator may be terminated as follows:

(a)	the Minister may, at any time, by notice in writing to an SRS operator, revoke the appointment of the SRS operator; or
(b)	an SRS operator may, at any time, by notice in writing to the Minister, relinquish its appointment as an SRS operator.

(2) Prior to the termination of its appointment, an SRS operator shall —

(a)	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;
(b)	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;
(c)	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
(d)	bear all costs relating to the transfer of its SRS accounts to other SRS operators.

(3) Where an SRS member fails to choose another SRS operator to take the place of his SRS operator whose appointment is being terminated such that his SRS operator is unable to comply with its obligation under paragraph (2)(b), the SRS operator whose appointment is being terminated shall transfer the SRS account of that SRS member to such other SRS operator as the Minister may direct.

(4) The appointment of an SRS operator shall terminate upon completion of the transfer of all SRS accounts maintained with it in accordance with paragraph (2)(b).

SRS members and SRS accounts

6.—(1) No person may be an SRS member unless he is an individual who —

(a)	has attained the age of 21 years; [S 521/2010 wef 01/02/2011]
(b)	is not an undischarged bankrupt; and
(c)	is of sound mind.

(2) Any person who wishes to be an SRS member may apply to an SRS operator for an SRS account to be opened and his application shall be accompanied by —

(a)	his consent for the SRS operator to release to the Comptroller or Minister the information specified in regulation 4(2) and (3); and
(b)	such information or documents relevant to the opening of the SRS account as the SRS operator may require.

(3) Subject to paragraph (6), an SRS member shall not open an SRS account with more than one SRS operator at any time.

(4) An SRS member who contravenes paragraph (3) shall be guilty of an offence.

(5) Where an applicant qualifies under paragraph (1) to be an SRS member, the SRS operator shall open and maintain an SRS account for that applicant and shall, at the time of opening such account —

(a)

obtain a declaration from the applicant that he has no other SRS account at that time or, if he is transferring his SRS funds from another SRS operator, that he has no other SRS account after the transfer; and

(b)

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

(i)	that an SRS member cannot have an SRS account with more than one SRS operator;
(ii)	that an SRS member cannot use his SRS funds or investments acquired using his SRS funds as collateral, security or guarantee for any financial transaction;
(iii)	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;
(iv)	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; and
(v)	that an SRS member is subject to Part XX of the Act if he contravenes any provision of the Act relating to the SRS or these Regulations.

(6) Where an SRS member wishes to transfer his SRS funds to another SRS operator, the SRS operator with whom the existing SRS account of that SRS member is maintained shall —

(a)	transfer the sum standing in the SRS account of that SRS member to the SRS operator specified by the SRS member; and
(b)	upon such transfer, close the existing SRS account of that SRS member and hand over to the other SRS operator sufficient records pertaining to that SRS account to enable the other SRS operator to operate the new SRS account of the SRS member. [S 521/2010 wef 01/02/2011]

(7) An SRS operator who —

(a)	opens an SRS account without obtaining the consent of an applicant referred to in paragraph (2)(a); or
(b)	fails to comply with paragraph (5)(a) or (6), [S 521/2010 wef 01/02/2011]

shall be guilty of an offence.

Suspension of SRS accounts

7.—(1) The Comptroller may direct an SRS operator to suspend an SRS account maintained with that SRS operator if the SRS member of that account contravenes any provision of the Act relating to the SRS or these Regulations.

(2) Where an SRS account of an SRS member is suspended under paragraph (1), the SRS member —

(a)

shall not make any further contribution to his SRS account;

(b)

shall not use his SRS funds to acquire any investment ;

[S 521/2010 wef 15/09/2010]

(c)

shall return to his SRS account —

(i)	all gains or profits arising from any investment acquired using his SRS funds during the period of suspension; and
(ii)	all proceeds from the disposal of such investments during the period of suspension; and

(d)

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

(3) An SRS member who contravenes paragraph (2) shall be guilty of an offence.

(4) Notwithstanding the suspension of an SRS account, the SRS operator may deduct from the SRS account any fees and charges in relation to the operation of the SRS account.

(5) The suspension of an SRS account shall remain in effect for such period and shall be subject to such terms and conditions as the Comptroller may specify.

Contributions to SRS accounts

8.—(1) An SRS member shall make contributions to his SRS account only in the form of cash.

(2) Except where an SRS member has instructed or authorised his employer to deposit his remuneration directly into his SRS account, an employer of an SRS member shall not make any contribution to the SRS account of the SRS member.

(3) An employer of an SRS member who contravenes paragraph (2) shall be guilty of an offence.

(4) Any SRS member who derives income from the exercise of an employment or from a trade, business, profession or vocation in any year may make contributions in the following year to his SRS account if he has not —

(a)

made a withdrawal from his SRS account on the ground that he —

(i)	is physically or mentally incapacitated from ever continuing in any employment;
(ii)	is found to be of unsound mind; or
(iii)	is suffering from a terminal illness or disease;

(b)

made a withdrawal from his SRS account on or after reaching the prescribed retirement age prevailing at the time of his first contribution; or

(c)

reached the prevailing prescribed retirement age.

(5) Subject to paragraph (4), an SRS member who has been adjudged a bankrupt and who has made a withdrawal from his SRS account during his bankruptcy may make further contributions to his SRS account upon his discharge from bankruptcy.

(6) An SRS member shall not make any contribution to his SRS account which exceeds his SRS contribution cap for that year.

(7) Subject to paragraph (9), an SRS operator —

(a)	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; and
(b)	shall not accept any contribution from an SRS member in any year which exceeds the contribution cap applicable to the SRS member for that year.

(8) For the purposes of paragraphs (6) and (7), a contribution to an SRS account exceeds the contribution cap applicable to an SRS member for any year if that contribution, when added to the contributions already made that year, if any, after deducting the withdrawals from his SRS account already made that year, if any, exceeds the contribution cap.

(9) Notwithstanding paragraph (7)(a), an SRS operator may accept contributions of an SRS member made in January, February and March of any year into his SRS account before determining the contribution cap of that SRS member where —

(a)	the contributions are made under the Interbank GIRO scheme; and
(b)	the total amount of contributions accepted within such period does not exceed the SRS contribution cap of the SRS member for the preceding year.

(10) Where an SRS operator accepts any contribution in any year under paragraph (9), the SRS operator shall ensure that the contribution is —

(a)	kept in cash and not used by the SRS member to acquire any investment until his SRS contribution cap for that year has been computed; and
(b)	refunded to the SRS member by the end of the first week of April of that year without accrued interest, penalty or deduction of tax under section 45E of the Act, if the SRS contribution cap is not computed by 31st March of that year.

(11) An SRS operator who fails to comply with paragraph (10) shall be guilty of an offence.

SRS contribution cap

9.—(1) Subject to regulation 10, the contribution cap of an SRS member for any year shall be computed in accordance with this regulation, and shall be calculated by the SRS operator of the SRS member unless he opts to have the Comptroller calculate his contribution cap.

(2) Where the SRS member opts to have his contribution cap computed by the Comptroller, his SRS operator shall accept the computation of the Comptroller as being correct.

(3) The contribution cap of an SRS member shall be computed using the relevant SRS contribution rate multiplied by the relevant income base of the SRS member.

[S 521/2010 wef 15/09/2010]

(4) For the purpose of paragraph (3), the relevant SRS contribution rate shall be as follows:

(a)	15% for an SRS member who is a citizen of Singapore or a Singapore permanent resident; and
(b)	35% for an SRS member who is not a citizen of Singapore or a Singapore permanent resident.

(5) For the purpose of paragraph (3), the relevant income base shall be the income derived by an SRS member in the year preceding the year for which the contribution cap is being calculated as follows:

(a)

for an SRS member who derived income only from the carrying on of a trade, business, profession or vocation in that year, the amount of his income from his trade, business, profession or vocation for that year, up to the limit of $72,000;

[S 207/2004 wef 01/01/2004]

(b)

for an SRS member who derived only ordinary wages from the exercise of any employment in that year, the amount of his ordinary wages for that year, up to the limit of $72,000 ;

[S 207/2004 wef 01/01/2004]

(c)

for an SRS member who derived only additional wages from the exercise of any employment in that year, the amount of his additional wages for that year, up to the limit of $100,000 ;

[S 207/2004 wef 01/01/2004]

(d)

for an SRS member who derived both ordinary wages and additional wages from the exercise of any employment in that year —

(i)

where his ordinary wages were less than or equal to $72,000 and the total of his ordinary wages and additional wages was less than or equal to $100,000, the total of his ordinary wages and additional wages for that year;

[S 207/2004 wef 01/01/2004]

(ii)

where his ordinary wages were less than or equal to $72,000 and the total of his ordinary wages and additional wages was more than $100,000, the amount of $100,000; and

[S 207/2004 wef 01/01/2004]

(iii)

where his ordinary wages were more than $72,000 , the total of —

(A)	$72,000; and [S 207/2004 wef 01/01/2004]
(B)	the lower of the following:
(I)	an amount equal to 40% of his ordinary wages for that year; or
(II)	his additional wages for that year; and

(e)

for an SRS member who derived income from both the carrying on of a trade, business, profession or vocation and the exercise of any employment in that year —

(i)

where he derived only ordinary wages from the exercise of any employment in that year, the total of —

(A)	the amount stated in sub-paragraph (b) in respect of his employment income; and
(B)	the lower of the following:
(I)	$72,000 less his ordinary wages; or [S 207/2004 wef 01/01/2004]
(II)	the amount of his income derived from the carrying on of a trade, business, profession or vocation;

(ii)

where he derived only additional wages from the exercise of any employment in that year, the total of —

(A)	the amount stated in sub-paragraph (c) in respect of his employment income; and
(B)	the lower of the following:
(I)	$100,000 less his additional wages; or [S 207/2004 wef 01/01/2004]
(II)	the amount of his income derived from the carrying on of a trade, business, profession or vocation;

(iii)

where his ordinary wages were less than or equal to $72,000 and the total of his ordinary wages and additional wages was less than or equal to $100,000, the total of —

(A)	the amount stated in sub-paragraph (d)(i) in respect of his employment income; and
(B)	the lower of the following:
(I)	$100,000 less the total of his ordinary wages and additional wages; or [S 207/2004 wef 01/01/2004]
(II)	the amount of his income derived from the carrying on of a trade, business, profession or vocation; [S 207/2004 wef 01/01/2004]

(iv)

where his ordinary wages were less than or equal to $72,000 and the total of his ordinary wages and additional wages was more than $100,000, the amount of $100,000; and

[S 207/2004 wef 01/01/2004]

(v)

where his ordinary wages were more than $72,000 , the amount stated in sub-paragraph (d)(iii) in respect of his employment income.

[S 207/2004 wef 01/01/2004]

(6) For the purposes of paragraph (5)—

(a)

the amount of ordinary wages and additional wages derived by an SRS member from the exercise of any employment in any year shall be the amount of such ordinary wages and additional wages furnished by or on behalf of the SRS member in such form as may be required by the Comptroller; and

(b)

the amount of income derived from the carrying on of a trade, business, profession or vocation in any year shall, at the option of the SRS member, be the amount of such income shown in —

(i)	the certified statement of accounts submitted with the return of income of the SRS member for that year; or
(ii)	the Notice of Assessment of the SRS member issued by the Comptroller for that year.

(7) Where —

(a)	an SRS member derives income from the carrying on of a trade, business, profession or vocation in any year; and
(b)	his contribution cap computed on the amount of income shown on his Notice of Assessment for that year is at variance with the contribution cap derived from the amount shown in the certified statement of accounts for that year,

he may request his SRS operator to, and his SRS operator shall thereupon, re-compute the contribution cap on the basis of the amount of income shown on the Notice of Assessment.

(8) An SRS operator who fails to comply with paragraph (7) shall be guilty of an offence.

(9) Upon re-computing the SRS contribution cap under paragraph (7), the SRS operator shall refund to the SRS member any amount contributed in that year that is in excess of the re-computed SRS contribution cap for that year.

(10) In computing the contribution cap for an SRS member, the SRS operator shall —

(a)	where the contribution cap of the SRS member is determined using the rate specified in paragraph (4)(b), ensure that the SRS member submits a declaration stating that he is not a citizen of Singapore or a Singapore permanent resident; and
(b)	reflect any amount of ordinary wages or additional wages declared in a foreign currency by the employer of the SRS member in Singapore dollars using the exchange rate prevailing on the day of computation.

(11) For the purpose of computing the contribution cap of an SRS member —

(a)	every employer of an SRS member shall furnish to the SRS member such forms and particulars as may be required by the Comptroller; and
(b)	every SRS member shall submit such documents as may be required by his SRS operator for the purpose of computing his SRS contribution cap.

(12) An employer of an SRS member who fails to comply with paragraph (11)(a) shall be guilty of an offence.

Effect on contribution cap upon SRS member becoming or ceasing to be citizen of Singapore or Singapore permanent resident

10.—(1) Where —

(a)	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
(b)	he makes a request in that year to his SRS operator to re-compute his SRS contribution cap for that year,

(2) Where —

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

(3) Where —

(a)

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

(b)

in the following year informs his SRS operator that he —

(i)	has become a citizen of Singapore or a Singapore permanent resident; and
(ii)	intends to makecontributions to his SRS account in that following year, [S 521/2010 wef 15/09/2010]

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.

(4) Where the contributions by an SRS member referred to in paragraph (3) to his SRS account in the year he becomes a citizen of Singapore or a Singapore permanent resident exceeds the re-computed SRS contribution cap, the difference shall be used to reduce the contribution cap for the following year.

(5) Where the contributions by an SRS member referred to in paragraph (3) to his SRS account in the year he becomes a citizen of Singapore or a Singapore permanent resident exceeds the total of the re-computed contribution cap for that year and the contribution cap for the following year, the difference between the amount contributed and the total of the 2 contribution caps shall be refunded by the SRS operator to the SRS member without penalty.

(6) Where a refund is made by an SRS operator under paragraph (5), the SRS operator shall comply with section 45E of the Act unless at the time of the refund the SRS member is a citizen of Singapore.

(7) Notwithstanding any re-computation under paragraph (3), the SRS contribution cap for purposes of section 39(2)(o) of the Act in relation to the year in which the SRS member becomes a citizen of Singapore or a Singapore permanent resident shall be the contribution cap computed as if he had not become a citizen of Singapore or a Singapore permanent resident in that year.

Use and investment of SRS funds

11.—(1) An SRS member shall not —

(a)	use his SRS funds as collateral, security or guarantee for any financial transaction; or
(b)	use any investment acquired using his SRS funds as collateral, security or guarantee for any financial transaction, or assign such investment to another person. [S 521/2010 wef 15/09/2010]

(2) An SRS member who contravenes paragraph (1) shall be guilty of an offence.

[S 521/2010 wef 15/09/2010]

(3) Subject to paragraph (4), an SRS member may use his SRS funds to acquire only the following investments:

(a)	any shares, warrants, loan stocks and bonds, whether listed in Singapore or elsewhere; and
(b)	any financial product.

(4) Where a financial product is an insurance product, an SRS member shall not use his SRS funds to acquire such insurance product unless —

(a)	it is a single premium insurance product; or
(b)	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.

(5) An SRS operator —

(a)	shall ensure that the SRS funds of any of its SRS members are used to acquire only investments allowed by these Regulations, and that, subject to regulation 12(4), all gains or profits derived from such investments and all proceeds of sale of such investments are returned to the SRS account of that SRS member;
(b)	shall not discriminate against any investments referred to in paragraph (3) created or distributed by any person;
(c)	shall endeavour to offer settlement facilities to SRS members for as wide a range of investments referred to in paragraph (3) as possible;
(d)	shall settle each investment transaction individually and not allow contra trades or contra settlement; and
(e)	shall 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.

(6) An SRS operator who contravenes paragraph (5) shall be guilty of an offence.

(7) Nothing in this regulation shall be taken to require an SRS member to sell any shares, warrants, loan stocks or bonds which he acquired using his SRS funds under paragraph (3) in the event such shares, warrants, loan stocks or bonds become unlisted.

Financial product providers

12.—(1) A financial product provider shall —

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

(2) Where a financial product provider has contravened any provision of these Regulations, the Minister may, in his discretion, prohibit the financial product provider from participating in the SRS.

(3) Upon the occurrence of the events stated under section 10L(8) of the Act, a financial product provider that is an insurance company —

(a)	shall comply with regulations 4(1)(a) to (d), (2) and (3) and 11(5)(a) 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 [S 521/2010 wef 15/09/2010]
(b)	shall be liable under those regulations in the same way as if the financial product provider were an SRS operator.

(4) Upon receipt of information of the death of an SRS member who acquired any investment from it, the financial product provider shall —

(a)	forward such information to the Comptroller or the SRS operator of that SRS member immediately;
(b)	make payment under any insurance policy acquired using the SRS funds of such SRS member in accordance with the relevant law;
(c)	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
(d)	if the death of the SRS member occurred after the end of any of the 2 periods 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. [S 521/2010, wef Y/A 2009 & Sub. Ys/A:2010-SL-134-RG-521]

(5) For the purpose of paragraphs (3) and (4), where a financial product provider which is an insurance company, in contravention of any provision of the Act relating to the SRS or these Regulations —

(a)	fails, without reasonable excuse, to deduct any amount of tax or penalty which it is required to deduct; or
(b)	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.

(6) A financial product provider who fails to comply with paragraph (1), (3) or (4) shall be guilty of an offence.

[S 521/2010 wef 15/09/2010]

Withdrawals from SRS accounts

13.—(1) Subject to regulation 14, any withdrawal by an SRS member from his SRS account shall be only in the form of cash, and his SRS operator shall debit such withdrawal from his SRS account.

(2) Where an SRS member has made a withdrawal that is subject to a penalty of 5% under section 10L(2) of the Act, the SRS member shall not be allowed to repay the amount withdrawn into the SRS account so as to avoid the penalty.

[S 521/2010 wef 15/09/2010]

(3) An application made under section 10L(3)(a) of the Act to withdraw the SRS funds of an SRS member who is not a citizen of Singapore or a Singapore permanent resident at the time of the application shall be accompanied by a declaration that he is not a citizen of Singapore or a Singapore permanent resident.

(4) An application made under section 10L(3)(a) of the Act to withdraw the SRS funds of an SRS member who is not a citizen of Singapore or a Singapore permanent resident at the time of the application but who was previously a citizen of Singapore or a Singapore permanent resident shall be accompanied by —

(a)	a declaration that he is not a citizen of Singapore or a Singapore permanent resident; and
(b)	a letter from the Singapore Immigration and Registration confirming that the SRS member is no longer a citizen of Singapore or a Singapore permanent resident. [S 231/2005 wef 01/01/2005]

(5) An application under section 10L(3)(c) of the Act to withdraw the SRS funds of an SRS member shall be accompanied by a certificate issued by a medical practitioner registered under the Medical Registration Act (Cap. 174) certifying that the SRS member —

(a)	is physically or mentally incapacitated from ever continuing in any employment;
(b)	is found to be of unsound mind; or
(c)	is suffering from a terminal illness or disease.

(6) An application to withdraw the SRS funds of an SRS member who is an undischarged bankrupt shall be accompanied by a notice issued by the trustee in bankruptcy of the SRS member or the Official Assignee.

(7) An SRS operator shall not permit any withdrawal by an SRS member from any SRS account maintained with it to be made under paragraph (5) or (6), unless the Comptroller has approved the withdrawal.

(8) An SRS operator who contravenes paragraph (7) shall be guilty of an offence.

Transfer of balance standing in SRS accounts after deemed withdrawals

14.—(1) Where any sum standing in the SRS account of a deceased SRS member is deemed to be withdrawn under section 10L(9) of the Act, the SRS operator shall not transfer such sum out of the SRS account except with the approval of the Comptroller.

(2) Where the balance remaining in the SRS account of an SRS member who is not a citizen of Singapore is deemed to be withdrawn under section 10L(6) or (7) of the Act and where such balance comprises solely of investments , the SRS operator shall not transfer such investments out of the SRS account without the approval of the Comptroller.

[S 521/2010 wef 15/09/2010]

(3) An SRS operator who contravenes paragraph (1) or (2) shall be guilty of an offence.

Amount of withdrawal under section 10L (4) of Act or of deemed withdrawal where investments purchased with SRS funds

15.—(1) Where any excess contribution is made by an SRS member to his SRS account and he fails to make any withdrawal required under section 10L (4) and the sum standing in his SRS account includes investments, the investments as at 31st December of the year in which the SRS member has been notified by the Comptroller of the excess contribution shall be valued as follows:

(a)	in the case of listed shares, warrants, loan stocks and bonds, the closing price of the investment as at that date;
(b)	in the case of listed shares, warrants, loan stocks and bonds that are suspended, the last traded price of the investment before that date;
(c)	in the case of listed shares which have become unlisted, the net asset value of the shares as at that date; [S 521/2010 wef 15/09/2010]
(d)	in the case of unit trusts, the published price or last available price as at that date;
(e)	in the case of fixed deposits with financial institutions maturing after that 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 deposit plus all interest accrued up to that date;
(g)	in the case of insurance products, the surrender value as at that date as determined by the insurance companies; and
(h)	in the case of any other investment, the market value of the investment as at that date.

(2) Where any balance remaining in the SRS account of an SRS member which is deemed to be withdrawn under section 10L (6), (7) or (9) of the Act includes investments acquired using SRS funds, the investments shall 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 date of the deemed withdrawal;
(b)	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;
(c)	in the case of listed shares which have become unlisted,unlisted shares the net asset value of the shares as at the date of the deemed withdrawal; [S 521/2010 wef 15/09/2010]
(d)	in the case of unit trusts, the published price or last available price as at the date of the deemed withdrawal;
(e)	in the case of fixed deposits with financial institutions maturing after the deemed withdrawal 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 deposit plus all interest accrued up to the date of the deemed withdrawal;
(g)	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
(h)	in the case of any other investment, the market value of the investment as at the date of the deemed withdrawal.

(3) Where any investment referred to in paragraph (1) or (2) is in a foreign currency, the SRS operator shall reflect the value of the investment in Singapore dollars using the exchange rate prevailing on the date the value of the investment is required to be determined.

[S 521/2010 wef 15/09/2010]

(4) The SRS operator shall provide the value of investments as determined under paragraphs (1), (2) and (3) to the Comptroller.

[S 521/2010 wef 15/09/2010]

(5) An SRS operator who fails to comply with paragraph (4) shall be guilty of an offence.

(6) Where the Comptroller is satisfied that it is not possible for an SRS operator to provide the value of any investment under paragraphs (1) and (2), the Comptroller may determine the value of such investment using any other reasonable basis.

[S 521/2010 wef 15/09/2010]

Computation of income deemed to accrue from excess contribution

16. For the purpose of section 10L(4)(a) of the Act, any excess contribution made by an SRS member shall be compounded at 5% yearly from 1st January of the year following the year in which the excess contribution was made by the SRS member, to the last day of the month before the month in which the SRS member was notified by the Comptroller of the excess contribution.

Fees and charges

17.—(1) SRS operators and financial product providers may impose fees and charges for maintaining an SRS account and for providing any other service to an SRS member relating to the SRS, and all such fees and charges shall be deducted by the SRS operator from the SRS funds of that SRS member.

(2) An SRS operator shall make available the full schedule of fees and charges that the SRS operator levies.

(3) An SRS operator shall not deduct any fees and charges in relation to an investment transaction from an SRS account opened with it which will result in a negative cash balance in the SRS account.

(4) An SRS operator who contravenes paragraph (1) or (3) shall be guilty of an offence.

Application of Regulations to existing accounts, etc.

18. Where, immediately before 13th January 2003, any account was opened by any person with an SRS operator for the purpose of participating in the SRS —

(a)	such account shall be treated as an SRS account opened under these Regulations;
(b)	such person shall be treated as an SRS member under these Regulations;
(c)	any contribution made to an account referred to in paragraph (a) shall be treated as a contribution made to an SRS account under these Regulations;
(d)	any withdrawal from an account referred to in paragraph (a) shall be treated as a withdrawal made from an SRS account under these Regulations;
(e)	any investment acquired using any funds in an account referred to in paragraph (a) shall be treated as an investment acquired using SRS funds under these Regulations; and
(f)	any deduction of fees and charges by an SRS operator from an account referred to in paragraph (a) shall be treated as a deduction of fees and charges by an SRS operator under these Regulations.

Made this 9th day of January 2003.

LIM SIONG GUAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[MF R32.13.0016 Pt 2 Vol. 17; AG/LEG/SL/134/2002/10 Vol. 1]

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