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Frequently Asked Questions GST Credits and Senior Citizens’ Bonus
GST Credits and Senior Citizens’ Bonus 1.1 Why is the Government giving out GST Credits/Senior Citizens’ Bonus? The GST Credits was introduced in 2007 to help Singaporeans cope with the impact of the GST increase. The Senior Citizens' Bonus is an additional payout given to the elderly to help them with their retirement and healthcare needs and recognize them for their contributions to Singapore's economic progress. To help Singaporeans cope with living expenses during the economic downturn in 2009, the Government doubled the amount of GST Credits and Senior Citizens’ Bonus and enhanced the rebates for Service and Conservancy Charges (S&CC) and rental in 2009 as part of the Resilience Package. 1.2 How much will the GST Credits/Senior Citizens' Bonus cost? The GST Credits costs the Government $1.8* billion over four years. The Senior Citizens' Bonus costs $400* million over four years. * The additional GST Credits and Senior Citizens' Bonus payouts given in Budget 2009 cost the Government another $580 million. 1.3 How many Singaporeans can benefit from the GST Credits/Senior Citizens’ Bonus? The GST Credits can benefit about 2.4 million Singaporeans including 800,000 elderly Singaporeans who also benefit from the Senior Citizens' Bonus. 1.4 Will the GST Credits/Senior Citizens’ Bonus earn bonus dividends, similar to the New Singapore Shares (NSS) and Economic Restructuring Shares (ERS)? No, the GST Credits and 2/3 of the Senior Citizens' Bonus would be distributed in the form of cash after sign-up. The remaining 1/3 of the Senior Citizens' Bonus will be credited to your CPF Medisave Account. This is based on feedback from past schemes that many Singaporeans chose to encash their NSS and ERS early instead of waiting for the dividends, despite the attractive interest rates offered. 2.1 Who qualifies to receive GST Credits/Senior Citizens’ Bonus? To receive GST Credits, you must:
If your annual Assessable Income is above $100,000 in the Year of Assessment preceding the year of payout; and have received GST Credits in previous years, you will not receive any further GST Credits. *You only need to sign up once to receive your GST Credits for that year and subsequent years that you qualify. To receive Senior Citizens’ Bonus, you must:
2.2 How will I know if I qualify for GST Credits/Senior Citizens’ Bonus each year? If you qualify, you will receive a letter from CPF Board in end-May this year informing you of the amount of GST Credits/Senior Citizens' Bonus you stand to receive in 2010. You will need to sign up once to receive the GST Credits/Senior Citizens' Bonus if you have not done so for previous years. 2.3 I did not receive the GST Offset Package notification letter in end-May this year. What should I do? If you have not received your GST Offset Package notification letter, you may login to the GST Offset Package website (using your Singpass) to check your allotment and your sign-up status. 2.4 Can Permanent Residents (PRs) receive the GST Credits/Senior Citizens’ Bonus? GST Credits/Senior Citizens' Bonus, like New Singapore Shares, Economic Restructuring Shares and the Progress Package are only given to citizens. This is a privilege of Singapore citizenship. 2.5 Can dual citizens get the GST Credits/Senior Citizens’ Bonus? No, dual citizens are not eligible for GST Credits as Singapore does not recognise dual citizenship. 2.6 I have just become a Singapore Citizen. Am I eligible for GST Credits/Senior Citizens’ Bonus? As long as you become a Singapore Citizen on or before 31 December of the year of payout, you will be eligible for the GST Credits/Senior Citizens' Bonus for that year. The CPF Board will send you a notification letter shortly after you have received your citizenship to inform you of the amount of GST Credits/Senior Citizens' Bonus you can get for that year. 2.7 Do I have to make a $50 contribution for GST Credits/Senior Citizens’ Bonus, similar to ERS? No, you do not need to make a $50 contribution. You only need to sign up for the GST Credits and indicate how you wish to be paid. 3. Amount of GST Credits/Senior Citizens' Bonus 3.1 How much GST Credits/Senior Citizens' Bonus (SCB) can I get? The amount of GST Credits/SCB you can receive depends on: (i) The Annual Value (AV) of your home in 2007 if your NRIC address has not changed since 31 December 2007*; (ii) Your Assessable Income (AI) for the Year of Assessment preceding the year of payout (for example, your 2010 payout depends on your AI for Year of Assessment 2009, which is the income you earned in calendar year 2008 as assessed by IRAS); (iii) Your Age in the year of payout; (iv) NS Status (All NSF/NSmen will be entitled to a once-off bonus of $100); and (v) Your Age in the year of payout (only applicable for Senior Citizens' Bonus). If you qualify, you will get a letter from CPF Board informing you of the amounts of GST Credits/Senior Citizens' Bonus you can get for that year. * Your payouts would be determined based on the AV of your home in 2007 if you have stayed in the same residence since then. If you newly qualify (i.e. new citizen or newly turned 21), your payouts would be determined based on the AV of your home in the preceding year if you stayed in the same residence. If you have changed your address, the AV of your new home in the year of change would be applied in determining your payouts from the subsequent year onwards after the change is reflected in your NRIC. For instance, if your NRIC address is changed in 2009, the AV of your new home in 2009 would be used for your 2010 payout. Structure of GST Credits
1 If you have stayed in the same residence since 2007, the AV cut-offs of $5,000 and $10,000 apply. Where payouts are determined based on the AV of your home in 2008 or 2009 because you newly qualify for payouts or have changed your NRIC address in 2008 or 2009, the AV cut-offs of $6,000 and $11,000 apply. 2 If you have already received a payout in previous years, you will not receive the $100. 3 For NSFs/NSmen, you will receive the $100 in the year that you first qualify. Structure of Senior Citizens' Bonus The Senior Citizens' Bonus (SCB) would be given to Singaporeans aged 55 and above. 2/3 of the SCB would be distributed in cash and 1/3 be credited into individual's CPF Medisave Accounts.
1 If you have stayed in the same residence since 2007, the AV cut-offs of $5,000 and $10,000 apply. Where payouts are determined based on the AV of your home in 2008 or 2009 because you newly qualify for payouts or have changed your NRIC address in 2008 or 2009, the AV cut-offs of $6,000 and $11,000 apply. For movement into or out of the highest tier (i.e. AI more than $100,000): In the year that your AI is assessed as being more than $100,000, you would get $100 (only if you have not received a payout in previous years) and if in subsequent years your AI remains above $100,000, you would get no further Credits. However, if your AI drops to $100k or below, you would qualify for additional Credits based on the above structure. 3.2 Why use both AI and AV to determine how much GST Credits/Senior Citizens' Bonus a person can get? The Government has received feedback from past surplus sharing exercises that both the income and wealth of a person should be taken into account when allocating more to vulnerable Singaporeans. The tiered structure of AI and AV presents a more targeted way of distributing GST Credits. The AI establishes an individual's income, while the AV of his place of residence is a proxy for wealth. 3.3 Why use age to determine how much Senior Citizens' Bonus a person can get? The Government is allocating more to older Singaporeans to help them with their retirement and healthcare needs and in recognition of their contributions to Singapore. 3.4 How much will I get if I stay in a rented property? The amount of GST Credits you will get will depend on the AV of your rented place of residence as stated in your NRIC address. 3.5 How do I check how much GST Credits/Senior Citizens’ Bonus I can get? If you are eligible to receive GST Credits/SCB in 2010, you will receive a notification letter from CPFB in end May 2010 stating the amount of GST Credits/SCB that you will receive in 2010. You can also check online the amount of GST Credits/Senior Citizens' Bonus you receive at www.gstoffset.gov.sg from 31 May 2010. 4.1 What is the Annual Value (AV)? AV is the property value used to calculate the property tax of your home. The AV can be found on the property tax bill that you receive each year. 4.2 Why is AV used instead of flat-type? The AV of a property provides an indication of the value (or worth) of a property and serves as a proxy for an individual's means. 4.3 If I own several properties, which AV will be used? The AV would be based on the property reflected in your NRIC address. If your NRIC address has not changed (i.e. you did not move house from 31 Dec 2007 - 31 Dec 2009), your 2008 - 2010 payouts would be based on the AV of your NRIC address as at 31 Dec 2007. If you changed address in 2009 or you newly qualify for these payouts (i.e. new citizen or newly turned 21) in 2010, your payouts would be based on the AV of your NRIC address in 2009, and the new AV cut-offs will apply. If you changed address in 2008, your payouts will be based on the AV of your NRIC address in 2008, and the new AV cut-offs would apply. 4.4 Will the 2008 AV cut-offs apply to my 2010 payouts? If your NRIC address did not change since 2007, the AV cut-offs of $6,000 and $11,000 would not apply to your 2010 payouts. Instead, your payout would be determined based on your 2007 AV. If your NRIC address changed in 2009 or if you newly qualify for GST Credits in 2010 (i.e. new citizens or newly turned 21), your 2010 payouts will be based on your 2009 AV as assessed by IRAS. If your NRIC address changed in 2008 and you continue to stay in the same residence, your 2010 payouts would be based on your 2008 AV as assessed by IRAS. 4.5 Why did the Government revise the 2008 AV cut-offs for the 2009 and 2010 payouts? Since the scheme was introduced in 2007, IRAS has revised the AVs of HDB flats on 1 Jan 2008, to reflect prevailing market rental values. The 2008 AV cut-offs for the 2009 and 2010 GST Credits/SCB payouts were revised to ensure that the distribution of the GST Credits/SCB among various groups of Singaporeans remained largely unchanged from the original intent. The lower AV cut-off of $6,000 would continue to cover all 1 to 3-room HDB flats, while the higher cut-off of $11,000 would continue to cover all 4-room, 5-room and exec HDB flats (except for a few very large HDB flats) and some private properties of similar value. 4.6 Is the Government deviating from the principle of determining eligibility yearly? The Government has not deviated from the principle of determining eligibility yearly. The eligibility must be updated regularly to take into account prevailing market conditions, but for those whose circumstances have not changed (i.e. not moved house), the Government would ensure that their payouts would not be affected by the change in AV. 5.1 What is Assessable Income (AI)? Assessable Income is the full income you have in a calendar year (sum of your employment, dividends, interest and other income) less allowable expenses, applicable capital allowances, donations to IPCs and any loss incurred in trade and business. For more information on Assessable Income, please visit IRAS' website. 5.2 Why has the AI cutoff changed from $24,000 to $29,000? The AI cutoff was revised to reflect the shift of the median wage for resident workers (including full-time and part-time workers) from $2,000 to $2,400 a month. 5.3 Why is the income cut-off for the Senior Citizens’ Bonus set at more than $100,000 a year? Those who earn more than $100,000 a year would be in the top 5% of income earners and have more resources to cope with their retirement and healthcare needs. 5.4 If I did not need to pay any taxes in Year of Assessment (preceding year of payout), what is my AI? You would be deemed to have an AI less than or equal to $29,000, so you would receive the higher amount of GST Credits/Senior Citizens’ Bonus for the AV category that you are in. 5.5 Why was I allotted GST Credits of only $100 when my income is not more than $100,000 and the AV of my home is not more than $10,000 or $11,000? The amount of GST Credits that you can receive in 2010 depends on the Annual Value (AV) of your home and your Annual Assessable Income (AI) for Year of Assessment 2009. In order for CPF Board to send out notification letters to 2.4 million eligible Singaporeans by end-May 2010, a cut-off date of 31 December 2009 was used for all the agencies, including IRAS, to transmit the information to CPF Board to determine the amount of GST Credits each person would receive. However, there may be a small number of Singaporeans whose Year of Assessment (YA) 2009 AI would not be finalised by 31 December 2009, either because they have not yet filed their YA2009 income tax returns or because IRAS is still in the process of finalising their income tax assessment. In this case, a provisional amount of GST Credits ($100) will first be allotted for 2010, pending the finalisation of your YA 2009 AI. Once IRAS has finalised the YA 2009 AI of all Singaporeans who submit their tax returns, CPF Board will send a letter to you to inform them that you are eligible for more GST Credits. Your additional Credits will also be automatically credited to your bank account. If you have not submitted your YA2009 tax returns, you should contact IRAS immediately at 1800-356 8300 (for salaried employees) or 1800-356 8611 (for self-employed individuals). 6. How to sign up and receive your 2010 GST Credits/Senior Citizens' Bonus 6.1 What must I do to receive my 2010 GST Credits/Senior Citizens' Bonus? If you have signed up for the GST Credits previously, you do not need to sign up again. You only need to sign up once to receive your GST Credits/Senior Citizens' Bonus. If you have not signed up for GST Credits previously, you must sign up in one of the following ways from 31 May 2010 to receive the GST Credits/Senior Citizens’ Bonus on 1 Jul 2010. * Note that no separate sign-up for Senior Citizens' Bonus is required. You need to sign up by 31 December 2010 via website or hardcopy forms (can be collected at CPF Service Centres, Community Centres/Clubs and Community Development Councils) to receive your 2010 payouts. The fastest way to receive your GST Credits/Senior Citizens' Bonus is to sign up through the website. Your GST Credits/Senior Citizens' Bonus will be credited to your bank account within 4 working days. If you sign up using forms, you will receive your GST Credits/Senior Citizens' Bonus in your bank account within 10 working days or a cheque within 15 working days. 6.2 Do I need to sign up separately for the GST Credits and Senior Citizens’ Bonus? No, there is only one sign-up for the GST Credits and Senior Citizens’ Bonus. 6.3 When can I start signing up? You can start signing up via the internet or hard copy forms from 31 May 2010. 6.4 When can I expect to receive my GST Credits and Senior Citizens’ Bonus? You can get your 2010 GST Credits, along with the Senior Citizens' Bonus (where eligible) on 1 July 2010 if you sign up by 18 June 2010. If you miss the June 2010 deadline, you have until 31 December 2010 to sign up for your 2010 GST Credits/Senior Citizens' Bonus. In this case, you will receive your GST Credits/Senior Citizens' Bonus between 4 to 15 working days after the sign-up, depending on your mode of sign-up:
You may contact CPF Board if you do not receive your payment after 1 month of your sign-up. 6.5 Is there a final deadline for signing up? The final deadline for you to sign up for the 2010 GST Credits/Senior Citizens' Bonus payouts is 31 December 2010, but we encourage you to sign up early by 18 June 2010 so you can get your payment on 1 July 2010. 6.6 How will the GST Credits/Senior Citizens’ Bonus be paid to me? When signing up, you will be asked to indicate whether you wish to have the payout credited directly into a bank account of your choice, or to receive a cheque*. *An administrative fee of $4 is payable at the bank for exchanging GST Credits/Senior Citizens' Bonus for cash. The fee will be waived for beneficiaries who are aged 62 and above upon producing the original NRIC for verification. 6.7 What if I miss the 31 December deadline for signing up? You will not be eligible to receive the GST Credits/Senior Citizens' Bonus. 6.8 I am eligible to receive the Senior Citizens’ Bonus, but I do not have a CPF Medisave Account. Do I have to ask CPF Board to open an account for me? No, CPF Board will open a CPF Medisave Account automatically for you if you do not have one. 6.9 If I am overseas, how can I sign up for the GST Credits/Senior Citizens' Bonus and receive my GST Credits/Senior Citizens' Bonus? (a) You can sign up for your GST Credits/Senior Citizens' Bonus via www.gstoffset.gov.sg with your SingPass. If you do not have SingPass, you can apply for it online and it will be mailed to your NRIC address. If you have a Singapore bank account, you can select the bank credit option and the allotted monies will be credited directly into a Singapore bank account of your choice. (b) If you do not have a Singapore bank account, you can select the cheque option. The cheque would be sent to your correspondence address as maintained with the CPF Board (if any) or to your NRIC address. You may wish to check with your overseas bank whether the cheque can be deposited into your overseas bank account. Overseas banks may charge a fee and the charges vary from bank to bank. 6.10 The beneficiary is bedridden/physically immobile or of unsound mind, and does not have a bank account. How can I help the beneficiary encash his GST Credits/Senior Citizens' Bonus cheque? If you are age 21 and above, please proceed to the bank issuing the cheque (DBS/POSB), with the following documents: (a)(i) Original signed Letter of Authorisation* from beneficiary witnessed by any of the following: Advocator & Solicitor of the Supreme Court, doctor, or Notary Public; or(a)(ii) Original documentary evidence stating the beneficiary's medical condition (e.g. doctor's memorandum or medical report or court order) and original signed Letter of Authorisation from beneficiary (unless a doctor's memorandum certifies that you are unable to do so). The date of the documents should not be more than 1 year before the cheque encashment. (Note: a doctor's memorandum or medical report can be dated more than 1 year before the encashment date, if it specifically states that the patient's condition is permanent.); (b) Both your original NRICs; and (c) Beneficiary’s GST Credits/Senior Citizens' Bonus cheque. You will be required to sign a Letter of Indemnity at the bank. An administrative fee of $4 is payable at the bank for exchanging GST Credits/Senior Citizens' Bonus cheques for cash. The fee will be waived for beneficiaries who are aged 62 and above. *Click here to download the Letter of Authorisation template. The Letter of Authorisation is also available at CPF Board or issuing bank branches. If you are unable to fulfill any of the above conditions, please contact our hotline at 1800-2222888 for further assistance.
6.11 How can I help a beneficiary who is overseas encash his GST Credits/Senior Citizens' Bonus cheque? If you are age 21 and above, please proceed to the bank issuing the cheque (DBS/POSB), with the following documents: (a)(i) Original signed Letter of Authorisation* from beneficiary (unless you have a doctor's memorandum to certify that you are unable to do so) witnessed by overseas Consular Officer or (a)(ii) Original signed Letter of Authorisation* from beneficiary (unless you have a doctor's memorandum to certify that you are unable to do so) and photocopies of beneficiary's valid passport (personal particulars page); (b) Your original NRIC; and (c) Beneficiary’s GST Credits/Senior Citizens' Bonus cheque. You will be required to sign a Letter of Indemnity at the bank. An administrative fee of $4 is payable at the bank for exchanging GST Credits/Senior Citizens' Bonus for cash. The fee will be waived for beneficiaries who are aged 62 and above. *Click here to download the Letter of Authorisation template. The Letter of Authorisation is also available at CPF Board or issuing bank branches. If you are unable to fulfill any of the above conditions, please contact our hotline at 1800-2222888 for further assistance. 6.12 How do I change the mode of payment for my GST Credits/Senior Citizens' Bonus? If you have not signed up for your GST Credits/Senior Citizens' Bonus, you may indicate the payment mode when you sign up for your GST Credits. You can only change your payment mode once a year. If you have already signed up and have not received your GST Credits and Senior Citizens' Bonus this year, you may do so from 31 May 2010 to 18 June 2010.
7.1 Can I donate my GST Credits to a charity? Yes, you can donate your GST Credits and Senior Citizens' Bonus (cash component) to a charity of your choice through the website www.gstoffset.gov.sg. The list of charities are provided by SG Gives (www.sggives.org), an internet donation portal with search function and donations to charities through credit card and direct debit (internet banking). Your particulars will be provided to SG Gives and the respective charities which you opt to donate to. 8. Additional Allotment of GST Credits for NSmen 8.1 Will NSF/NSmen get extra GST Credits? NSF/NSmen/Ex-NSmen (those who have exceeded statutory age) receive a one-time allotment of GST Credits worth $100 in recognition of their contributions to Total Defence. To qualify for the additional NS component, you must be a Singapore citizen and be serving or have served NS in the SAF, SPF and SCDF as at the point of assessment. In addition, NSFs must have completed Basic Military Training (BMT) or served at least 7 weeks of full-time NS at the point of assessment to be eligible for the payout. The one-time additional NS component would be given together with the first tranche of GST Credits that the individual qualifies for. The payment tranches and their corresponding eligibility cut-off dates are shown in the table below.
8.2 How can I get my additional allotment of GST Credits for NSmen? If you are a NSF/NSman under 21 years of age, MINDEF will automatically credit the additional allotment of GST Credits directly into the bank account you have provided to MINDEF. If MINDEF does not have your bank account details, they will issue you a crossed cheque. If you are a NSF/NSman aged 21 and above, you will qualify for your additional allotment after you have signed up for your GST Credits. Payments will be made by CPF Board. 9.1 If the beneficiary passed away before his GST Credits/Senior Citizens' Bonus were paid, is he still eligible to receive the payout? As the GST Credits/Senior Citizens' Bonus are meant to help with increases in living expenses, recipients must be living at the point of payment. Hence, if the beneficiary has passed away before his GST Credits/Senior Citizens' Bonus were paid, he will no longer be eligible to receive the payout. 9.2 Are the GST Credits/Senior Citizens’ Bonus taxable? No, the GST Credits/Senior Citizens’ Bonus are not taxable. 9.3 How do I request for a replacement cheque for my GST Credits/Senior Citizens' Bonus? If your cheque has expired or has been misplaced, please proceed to any DBS/POSB branches with your NRIC for a replacement.
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