I never had an SRS Account. Until now.
The SRS Account stands for Supplementary Retirement Scheme which is a voluntary scheme to encourage people to save for retirement. It is basically our private retirement plan, that supplement the government defined contribution plan, the CPF.
When you contribute to your SRS account, you deferred paying taxes till the designated withdrawal time.
This contribution amount will be a deduction on your total income, to derive a lower taxable income.
During withdrawal time, only 50% of your withdrawal is subject to income tax. How much tax you will pay at withdrawal, will depend on your tax bracket. The idea is that when you retire, you should not earn any ordinary income, so the income tax that you pay on 50% of your withdrawal should be lower than the tax you pay on your current tax bracket.
The designated withdrawal time, is tied to ...