Retirement benefits are received by employees when they have reached their retirement age.
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Taxability of retirement benefits
All retirement benefits including gratuities and pensions are taxable unless they are specifically exempted under the Income Tax Act.
| S/N | Types of retirement funds/schemes | Is it taxable? |
|---|---|---|
| 1 | Retirement benefits received from government pension schemes under any written law relating to pensions in Singapore (including the Pensions Act, Singapore Armed Forces Act and Parliamentary Pensions Act) | Not taxable |
| 2 | Retirement benefits received from CPF/designated funds | Not taxable |
| 3 | Retirement benefits received from approved pension and provident funds before retirement | Taxable on the total amount of retirement benefits received. |
| 4 | Retirement benefits received from approved pension and provident funds upon retirement based on the statutory retirement age | Taxable only on funds accrued from 1 Jan 1993 to date of retirement. Funds will be taxed at the time the benefits are received. |
Reporting retirement benefits
| Company not participating in the Auto-Inclusion Scheme (AIS) for Employment Income | Company participating in the AIS |
|---|---|
| You must declare the taxable retirement benefits under 'Employment - Others' in your Income Tax Return. | You do not need to report the retirement benefits in your Income Tax Return as your employer will submit the information to IRAS electronically. |