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Frequently Asked Questions GST Credits and Senior Citizens’ Bonus
Growth Dividends
GST Credits and Senior Citizens’ Bonus 1.1 Why is the Government giving out GST Credits/Senior Citizens’ Bonus? The Government is giving out GST Credits to help Singaporeans with the impact of the GST increase. The Senior Citizens’ Bonus helps lower-income elderly with their retirement and healthcare needs and recognizes them for their contributions to Singapore’s economic progress. 1.2 How much will the GST Credits/Senior Citizens’ Bonus cost? The GST Credits will cost the Government $1.8 billion. The Senior Citizens’ Bonus will cost $400 million. 1.3 How many Singaporeans can benefit from the GST Credits/Senior Citizens’ Bonus? About 2.4 million Singaporeans are eligible for GST Credits and about 544,000 elderly Singaporeans will 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)? Previously, many Singaporeans chose to encash their NSS and ERS early instead of waiting for the dividends, despite the attractive interest rates offered. Hence, the GST Credits and 2/3 of the Senior Citizens’ Bonus will be distributed in the form of cash which can be collected immediately after sign-up. 2.1 Who qualifies to receive GST Credits/Senior Citizens’ Bonus? To receive GST Credits, you must:
*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 mid May each year informing you of the amount of GST Credits/Senior Citizens’ Bonus you can get for that year. You will only need to sign up once to receive the GST Credits/Senior Citizens’ Bonus for that year as well as subsequent years that you qualify. 2.3 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. 2.4 Can dual citizens get the GST Credits/Senior Citizens’ Bonus? No, dual citizens are not eligible for GST Credits. Singapore does not allow dual citizenship. 2.5 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 of payout. 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. 2.6 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:
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. * If your NRIC address changes in 2008 or you newly qualify for these payouts (i.e. new citizen or newly turned 21) in 2009, the AV of your home in 2008 will be used to determine your 2009 and 2010 payouts. Likewise, if your NRIC address changes in 2009 or newly qualify in 2010, the AV of your home in 2009 will be used to determine your 2010 payout. The AV cut-offs will also be adjusted to broadly maintain the distribution of benefits that was intended when the GST Offset Package was announced in Feb 2007. Structure of GST Credits GST Credits in 2007 (and 2008):
GST Credits in 2009 (and 2010): For Singaporeans whose NRIC address has not changed from 31 Dec 2007 to 31 Dec 2009:
For Singaporeans whose NRIC address changes in 2008 or 2009, and those who are receiving GST Credits for the first time in 2009 or 2010:
* If an individual has already received a payout in previous years, he will not receive the $100. NSFs/NSmen will receive the $100 in the year that they first qualify. Structure of Senior Citizens' Bonus The Senior Citizens' Bonus (SCB) will be based on the same tiers as the GST Credits, with 2/3 in cash and 1/3 in the CPF Medisave Account. Senior Citizens' Bonus in 2007 (and 2008):
Senior Citizens' Bonus in 2009 (and 2010): For Singaporeans whose NRIC address has not changed from 31 Dec 2007 to 31 Dec 2009:
For Singaporeans whose NRIC address changes in 2008 or 2009, and those who are receiving GST Credits for the first time in 2009 or 2010:
Singaporeans whose NRIC address changes in 2009 or are receiving the GST Credits for the first time in 2010 will be subject to the new AV cut-offs which will be reviewed when the 2009 AV assessments are completed in 2008. For movement into or out of the highest tier (i.e. AI more than $100,000): The GST Credits of $100 given in the first year to Singaporeans with AI more than $100,000 are meant to help them defray GST costs for the first year following the GST increase. The GST Credits given to Singaporeans in other tiers are meant to help them defray GST costs for the number of years that the GST Credits framework is in effect. If your AI increases from less than $100,000 in the first year to more than $100,000 in the second to fourth years, you will not receive more GST Credits from the second year onwards as you would have already received at least $100 of GST Credits in a previous year. If your AI drops from more than $100,000 in the first year to less than $100,000 in the second to fourth years, you will receive $100 of GST Credits in the first year and GST Credits from the second year onwards based on your AV and AI. 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 property 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 Singapore Citizens to help them with their increased retirement and healthcare needs. 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 property stated as 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 2008, you will receive a notification letter from CPFB in mid May 2008 stating the amount of GST Credits/SCB that you will receive in 2008. 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? While the AI establishes an individual's income, the AV of his property provides an indication of the value (or worth) of his property and serves as a proxy for his wealth. 4.3 If I own several properties, which AV will be used? The AV will be based on the property reflected as your NRIC address. If your NRIC address does not change (i.e. you do not move house from 31 Dec 2007 - 31 Dec 2009), your 2008 - 2010 payouts will be based on the AV of your NRIC address as at 31 Dec 2007. If you move house or newly qualify (e.g. new citizen, newly turned 21), your payouts will be based on the AV of your NRIC address in the preceding year, and the new AV cut-offs will apply. 4.4 Will the new 2008 AV cut-offs apply to my 2007 and 2008 GST Credits/SCB? No, the new 2008 AV cut-offs will apply only for the 2009 and 2010 GST Credits/SCB payouts, and only to Singaporeans whose NRIC addresses change in 2008 or 2009, and those who newly qualify for the GST Credits in 2009 or 2010. The existing AV cut-offs of $5,000 and $10,000 will continue to apply for your 2007 and 2008 GST Credits/SCB, which will be based on the AV of your home in 2006 and 2007 respectively. 4.5 Will the new 2008 AV cut-offs apply to my 2009 payouts? If your NRIC address does not change in 2008, the new 2008 AV cut-offs will not apply to your 2009 payouts. Your 2008 AV will be taken to be the same as your 2007 AV. So if your 2008 AI remains in the same category as your 2007 AI, you will receive the same payout in 2009 as what you will receive in 2008. However, if your NRIC address changes in 2008, or if you newly qualify for the GST Credits in 2009 (i.e. new citizens or newly turning 21), your 2009 payout will be based on your 2008 AV as assessed by IRAS. The new 2008 AV cut-offs will also apply to your 2009 payout. 4.6 Will the new 2008 AV cut-offs apply to my 2010 payouts? The new 2008 AV cut-offs will apply to your 2010 payouts only if your NRIC address changes in 2009. 4.7 Why is the Government revising the 2008 AV cut-offs for the 2009 payouts? IRAS will be revising the AVs of HDB flats on 1 Jan 2008, to reflect prevailing market rental values. The 2008 AV cut-offs for the 2009 GST Credits/SCB payouts are revised to ensure that the original distribution of the GST Credits/SCB among various groups of Singaporeans remain largely unchanged. The lower AV cut-off of $6,000 will continue to cover all 1 to 3-room HDB flats, while the higher cut-off of $11,000 will 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. 4.8 Is the Government deviating from the principle of determining eligibility yearly? The Government is not deviating from the principle of determining eligibility yearly. For Singaporeans whose circumstances have not changed, they will receive the same amount of payout. For those whose NRIC address changes (e.g. because they moved house) or newly qualify (i.e. new citizens or newly turned 21), their payout will be based on the AV and AI as in the preceding year. 4.9 The AV of my 3-room HDB flat was assessed at $5,100 in 2007 and is assessed at $5,900 in 2008. Can I choose to use the new AV cut-off of $6,000 instead so that I can get a higher payout (assuming my AI has not changed)? No. Singaporeans who do not move house will have their 2009 payout determined based on their 2007 AV. The AV revision exercise is not meant to result in windfall gains for certain individuals. 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 is the AI of $24,000 used? The cut-off of $24,000 corresponds with the salary of a median worker (full-time and part-time resident workers) which is about $2,000 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 will 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 will be deemed to have an AI less than or equal to $24,000, so you will receive the higher amount of GST Credits/Senior Citizens’ Bonus for the AV category that you are in. 5.5 Why was I alloted 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? The amount of GST Credits that you can receive in 2007 depends on the Annual Value (AV) of your home based on your NRIC address as of 31 December 2006, and your Annual Assessable Income (AI) for Year of Assessment 2006. In order for CPF Board to send out notification letters to 2.4 million eligible Singaporeans by 15 May 2007, a cut-off date of 21 March 2007 was set for all the agencies, including IRAS, to transmit the AV and AI information to CPF Board to determine the amount of GST Credits they will receive. However, there have been a small number of Singaporeans whose Year of Assessment (YA) 2006 AI had not been finalised by 21 March 2007, either because they had not yet filed their YA2006 income tax returns or because IRAS were still in the process of finalising their income tax assessment. For such cases, a provisional amount of GST Credits ($100) was allotted for 2007, pending the finalisation of their YA2006 AI. IRAS has since finalised the YA2006 AI of all Singaporeans who had submitted their tax returns. If their YA2006 AI is $100,000 or less, CPF Board would send out letters to these individuals by 15 June 2007, informing them that they are automatically eligible for more GST Credits. Singaporeans who have not submitted their YA2006 tax returns 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 2008 GST Credits/Senior Citizens' Bonus 6.1 What must I do to receive my 2008 GST Credits/Senior Citizens' Bonus? To receive your GST Credits/Senior Citizens’ Bonus, you must sign up via one of the following methods:
* Note that no separate sign-up for Senior Citizens’ Bonus is required. You only need to sign up once to receive your GST Credits/Senior Citizens' Bonus. If you have signed up for the GST Credits previously, you do not need to sign up again for 2008 as well as subsequent years that you qualify. If you have not signed up for GST Credits previously, you must sign up in one of the following ways from mid April 2008 as so to receive your GST Credits on 1 July 2008. For 2008:
6.2 What if I miss the June 2008 deadlines? You have until 31 December 2008 to sign up for your GST Credits/ Senior Citizens' Bonus. 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. 6.3 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. 6.4 When can I start signing up? You can start signing up via the internet or hard copy forms from mid April 2008. 6.5 When can I expect to receive my GST Credits and Senior Citizens’ Bonus? If you sign up by the following deadlines, you can get your GST Credits, along with the Senior Citizens' Bonus (where eligible) on 1 July 2008.
If you miss the June 2008 deadline, you have until 31 December 2008 to sign up for your 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:
6.6 Is there a final deadline for signing up? The final deadline for you to sign up for the 2008 GST Credits/Senior Citizens' Bonus is 31 December 2008, but we encourage you to sign up early by 25 June 2008 so you can get your payment on 1 July 2008. 6.7 How will the GST Credits/Senior Citizens’ Bonus be paid to me? For sign-ups through the website, you will be asked to indicate a bank account or a cheque. For sign-ups through hardcopy form, you will be asked to indicate a bank account or a cheque. 6.8 What if I miss the 31 December deadline for signing up? You will not be eligible to receive the GST Credits/Senior Citizens’ Bonus for that year. However, you can still sign up the next year for future years of GST Credits/Senior Citizens’ Bonus. 6.9 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. 6.10 How can a beneficiary who is overseas sign up for the GST Credits/Senior Citizens' Bonus and receive his GST Credits/Senior Citizens' Bonus? (a) An overseas Singaporean can sign up for his GST Credits/Senior Citizens' Bonus via www.gstoffset.gov.sg with his SingPass. He will need SingPass to sign up. If he does not have SingPass, he can apply for it online and it will be mailed to his NRIC address. If he has a local bank account, he can select the bank credit option and the allotted monies will be credited directly into his local bank account. 6.11 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 (unless otherwise exempted by doctor's memo or medical report) witnessed by any of the following: Advocate & Solicitor of the Supreme Court, doctor, or Notary Public; or(a)(ii) Original signed Letter of Authorisation from beneficiary (unless otherwise exempted by doctor's memo or medical report) and original documentary evidence stating beneficiary's medical condition e.g. doctor's memo or medical report or court order. The date of the documents should not be more than 1 year before the cheque encashment. (Note: a doctor's memo 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; (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 CPFB 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 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 otherwise exempted by doctor's memo or medical report) witnessed by overseas Consular Officer or (a)(ii) Original signed Letter of Authorisation* from beneficiary (unless otherwise exempted by doctor's memo or medical report) and photocopies of beneficiary’s valid passport (personal particulars page); (b) Your original NRIC; (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 CPFB 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.
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. 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) will 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 living 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 allotment of GST Credits will be given in the first payment tranche that the individual first qualifies. 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 were paid, will the payment still be credited to his bank account? As the GST Credits are meant to help with increases in living expenses, one of the eligibility criteria for the GST Credits/Senior Citizens’ Bonus is that the recipient must be a living Singapore citizen at the point of payment. Hence, if the beneficiary passed away before his GST Credits were paid, the payment will not be credited to his bank account. 9.2 Are the GST Credits/Senior Citizens’ Bonus taxable? No, the GST Credits/Senior Citizens’ Bonus are not taxable.
Growth Dividends 1.1 Why is the Government giving out Growth Dividends? The Growth Dividends are being given out to share the nation's surpluses over the past year with Singaporeans. Older Singaporeans and National Servicemen will be given additional Growth Dividends to recognize their contributions towards nation building and national security respectively. In view of the current inflationary climate, Prime Minister Lee Hsien Loong, in his National Day Rally Speech, has announced that Singaporeans will receive a 50% increase to the second installment of Growth Dividends in October 2008 to help them cope with the increased cost of living. The increase in Growth Dividends will benefit about 2.4 million Singaporeans and cost the Government an additional $190 million. This brings the total Growth Dividends that Singaporeans will receive in 2008 to $1.06 billion. 2.1 Who can receive the Growth Dividends? To receive the Growth Dividends, you must:
2.2 How do I receive my Growth Dividends? You will receive a letter from CPFB in mid April 2008 to inform you of the amount of Growth Dividends and 2008 GST Credits you can receive. If you have already signed up for your GST Credits in 2007, you will automatically receive your Growth Dividends through the same mode as your GST Credits (i.e. cheque/bank account). If you have not signed up for your GST Credits, you must do so at the GST Offset Package website or through hard copy forms available at CPF Service Centres, Community Centres/Clubs and Community Development Councils from mid April 2008 to 31 December 2008 to receive your Growth Dividends. 2.3 When will I receive my Growth Dividends? If you have already signed up for your GST Credits in 2007, you will automatically receive your Growth Dividends in two installments, the first on 30 April 2008, and the second on 1 October 2008. If you have not signed up for your GST Credits, you must do so to receive both your 2008 GST Credits and Growth Dividends. You can sign up online or by hardcopy forms available at CPF Service Centres, Community Centres/Clubs and Community Development Councils. To receive the first installment of Growth Dividends by 30 April 2008, you must do so online by 23 April 2008. If you sign up by 25 June 2008, you will receive your first installment of Growth Dividends on 1 July 2008. For sign-ups after 25 June 2008, you will receive your Growth Dividends after 1 July 2008, between 4 to 15 working days after the sign-up. The final deadline to sign up to receive both your Growth Dividends and your 2008 GST Credits is 31 December 2008. 2.4 Can Permanent Residents (PRs) receive the Growth Dividends? No. Growth Dividends are given only to citizens. This is a privilege of Singapore citizenship. 2.5 Can dual citizens get the Growth Dividends? No. Singapore does not recognise dual citizenship. 2.6 I have just become a Singapore Citizen. Am I eligible for Growth Dividends? You will be eligible for the Growth Dividends so long as you become a Singapore Citizen on or before 31 December 2008. The CPF Board will send you a notification letter shortly after you have received your citizenship to inform you of the amount of Growth Dividends (and 2008 GST Credits) that you can get. 2.7 Do I have to make a $50 contribution to receive the Growth Dividends, similar to the Economic Restructuring Shares? No, you do not need to make a $50 contribution. 2.8 How many Singaporeans can benefit from the Growth Dividends? About 2.4 million Singaporeans are eligible for Growth Dividends. About 500,000 Singaporeans aged 60 and above and 750,000 NSFs, NSmen and ex-NSmen will receive additional Growth Dividends. 3.1 How much Growth Dividends can I get? The amount of Growth Dividends that you can receive depends on: (i) The Annual Value (AV) of your home in 2007 as assessed by IRAS (based on your NRIC address on 31 December 2007); and (ii) Your Assessable Income (AI) for the Year of Assessment 2007; and (iii) Your Age in 2008; and (iv) Your NS status in 2008. Structure of Enhanced Growth Dividends for 2008
Figures in brackets show the first installment of the Growth Dividends and enhanced second installment of the Growth Dividends announced at National Day Rally respectively. 3.2 Why do I get my Growth Dividends in two installments? This is to encourage Singaporeans to smoothen out their expenditures and avoid impulsive spending. 3.3 Why use both AI and AV to determine how much Growth Dividends 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 targeting higher levels of benefits at the more needy Singaporeans. The tiered structure of AI and AV presents a more targeted way of distributing Growth Dividends. The AI establishes an individual's income, while the AV of his property is a proxy for wealth. 3.4 How much will I get if I stay in a rented property? The amount of Growth Dividends that you will get depends on the AV of your rented property (based on NRIC address as of 31 December 2007). 3.5 How do I check how much Growth Dividends I can get? If you are eligible to receive the Growth Dividends, you will receive a notification letter from CPF Board on or after 27 September 2008 stating the amount of Growth Dividends that you can receive. Alternatively, you can check your Growth Dividends allotment for 2008 online at www.growthdividends.gov.sg. Your allotment will be revised to include the increment announced at National Day Rally from 8 September 2008. 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? While the AI establishes an individual's income, the AV of his property provides an indication of the value (or worth) of his property and serves as a proxy for his wealth. 4.3 If I own several properties, which AV will be used? The AV will be based on the property reflected as your NRIC address as of 31 December 2007. 4.4 Why are AV cut-offs of $5,000 and $10,000 used? Based on AV values as at 31 December 2007, an AV of $5,000 or less covers those who stay in 1-3 room HDB flats. An AV of between $5,000 and $10,000 covers those who stay in 4, 5-room and executive HDB flats and less expensive private properties. An AV of more than $10,000 covers the top 10% of the population who stay in more expensive private properties. 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 is the AI of $24,000 used? The cut-off of $24,000 roughly corresponds to the salary of a median worker (full-time and part-time resident workers). 5.3 Why is the AI of $100,000 used? The cut-off of $100,000 roughly corresponds to the AI of the top 5% of income-earners in Singapore. 5.4 If I did not need to pay any taxes in Year of Assessment 2007, what is my AI? You will be deemed to have an AI less than or equal to $24,000, so you will receive the higher amount of Growth Dividends for the AV category that you are in. 6. How to Sign up and Receive your Growth Dividends 6.1 What must I do to receive my Growth Dividends? You will get a letter from CPF Board in mid April 2008 to inform you of the amount of Growth Dividends and 2008 GST Credits you are eligible to receive. If you have already signed up for your GST Credits in 2007 and are eligible to receive the Growth Dividends, you do not need to do anything. You will automatically receive the first installment of your Growth Dividends on 30 April 2008, and second installment on 1 October 2008. If you have not signed up for your GST Credits, you must do so to receive both your 2008 GST Credits and Growth Dividends. You can sign up online or by hardcopy forms available at CPF Service Centres, Community Centres/Clubs and Community Development Councils. To receive the first installment of Growth Dividends by 30 April 2008, you must do so online by 23 April 2008. If you sign up by 25 June 2008, you will receive your first installment of Growth Dividends on 1 July 2008. For sign-ups after 25 June 2008, you will receive your Growth Dividends after 1 July 2008, between 4 to 15 working days after the sign-up. The final deadline to sign up to receive both your Growth Dividends and your 2008 GST Credits is 31 December 2008.
6.2 What must I do to receive my Growth Dividends if I missed the June 2008 deadlines? You can still receive both your 2008 GST Credits and Growth Dividends if you sign up by 31 December 2008. We encourage you to sign up online, though you may also do so by hardcopy forms available at CPF Service Centres, Community Centres/Clubs and Community Development Councils. Please sign up by 23 September 2008 (or by 13 September 2008 if you sign up via hardcopy form) to receive the second installment of Growth Dividends on 1 October 2008 (your 2008 GST Credits and the first installment of Growth Dividends will be credited to your account within 4 to 15 working days after you sign up). If you sign up online after 23 September 2008, you will receive your 2008 GST Credits and both installments of your Growth Dividends after 1 October 2008, between 4 to 15 working days after the sign-up. The final deadline to sign up to receive your Growth Dividends and your 2008 GST Credits is 31 December 2008.
6.3 Do I need to sign up separately for my additional Growth Dividends announced during the National Day Rally? Eligible Singaporeans who have received their GST Credits and the first installment of Growth Dividends will automatically receive the additional Growth Dividends together with their second installment on 1 October 2008. If you have not signed up for your GST Credits, you must do so to receive both your 2008 GST Credits and Growth Dividends. You can sign up online or by hardcopy forms available at CPF Service Centre, Community Centres/Clubs and Community Development Councils. 6.4 How can a beneficiary who is overseas sign up for the Growth Dividends and receive his Growth Dividends? (a) An overseas Singaporean can sign up for his Growth Dividends via www.gstoffset.gov.sg with his SingPass. He will need SingPass to sign up. If he does not have SingPass, he can apply for it online and it will be mailed to his NRIC address. If he has a local bank account, he can select the bank credit option and the allotted monies will be credited directly into his local bank account. (b) If he does not have a local bank account, he can select the cheque option. The cheque would be sent to his correspondence address as maintained with the CPF Board (if any) or NRIC address. He may wish to check with his overseas bank whether the cheque can be deposited into his overseas bank account. Overseas banks may charge a fee and the charges vary from bank to bank. 6.5 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 Growth Dividends cheque? If you are age 21 and above, please proceed to the bank issuing the cheque (OCBC), with the following documents: (a)(i) Original signed Letter of Authorisation* from beneficiary (unless otherwise exempted by doctor's memo or medical report) witnessed by any of the following: Advocate & Solicitor of the Supreme Court, doctor, or Notary Public; or (a)(ii) Original signed Letter of Authorisation from beneficiary (unless otherwise exempted by doctor's memo or medical report) and original documentary evidence stating beneficiary's medical condition e.g. doctor's memo or medical report or court order. The date of the documents should not be more than 1 year before the cheque encashment. (Note: a doctor's memo 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; (c) Beneficiary’s Growth Dividends 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 Growth Dividends 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 CPFB 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. 6.6 How can I help a beneficiary who is overseas encash his Growth Dividends cheque? If you are age 21 and above, please proceed to the bank issuing the cheque (OCBC), with the following documents: (a)(i) Original signed Letter of Authorisation* from beneficiary (unless otherwise exempted by doctor's memo or medical report) witnessed by overseas Consular Officer or (a)(ii) Original signed Letter of Authorisation* from beneficiary (unless otherwise exempted by doctor's memo or medical report) and photocopies of beneficiary’s valid passport (personal particulars page); (b) Your original NRIC; (c) Beneficiary’s Growth Dividends 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 Growth Dividends 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 CPFB 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. 7. Donating your Growth Dividends 7.1 Can I donate my Growth Dividends to a charity? You can donate your Growth Dividends to a charity of your choice. If you have signed up for your GST Credits in 2007 and wish to donate your Growth Dividends and 2008 GST Credits, you may do so from 15 April to 23 April 2008 at www.gstoffset.gov.sg. If you miss the 23 April 2008 deadline, you can still donate the second installment of your Growth Dividends via the website by 23 September 2008. Those who have not signed up for their GST Credits can donate their Growth Dividends and 2008 GST Credits when they sign up for their 2008 GST Credits. 8. Additional Allotment of Growth Dividends for NSmen 8.1 Will NSF/NSmen get extra Growth Dividends? NSmen, ex-NSmen (those who have exceeded statutory age) and NSFs will receive additional $100 in Growth Dividends. To qualify for the additional NS component, you must be a living 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. 8.2 How and when can I get my additional allotment of Growth Dividends? If you are a NSF/NSman/Ex-NSman aged 21 and above in 2008 and have signed up for your GST Credits in 2007, you will receive the additional allotment of Growth Dividends automatically from CPF Board. The additional allotment of $100 will be paid in two installments in the same mode as your GST Credits, the first on 30 April 2008 and the second on 1 October 2008. If you have not signed up for your GST Credits, you must do so in order to receive the additional allotment of Growth Dividends. If you are a NSF/NSman under 21 years of age in 2008, you will have the additional allotment of Growth Dividends credited directly into your bank account by MINDEF based on the schedule in the table below. You do not need to sign up for it. If MINDEF does not have your bank account details, they will issue you a crossed cheque.
9.1 Will the Growth Dividends earn bonus dividends, similar to the New Singapore Shares (NSS) and Economic Restructuring Shares (ERS)? No. From the experience with past schemes, most Singaporeans prefer to encash their NSS and ERS early instead of keeping them to earn bonus dividends. Hence, the Growth Dividends will be distributed in the form of cash. 9.2 Are the Growth Dividends taxable? No, the Growth Dividends are not taxable. 9.3 I have signed up and received my GST Credits in my bank account in 2007. Can I change my bank account or request for a cheque for the Growth Dividends that I will receive in 2008? Yes you can. To receive both installments of Growth Dividends based on your new payment instruction, you must submit your request online by 23 April 2008. If you do so by 23 September 2008, you will only receive your second installment of Growth Dividends on 1 October 2008 based on your new instruction. Your first installment of Growth Dividends will continue to be paid out to you based on your current payment records. You will not be able to change your payment instruction after 23 September 2008.
*One-third of your Senior Citizens’ Bonus will be credited to your CPF Medisave Account. |
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