Repatriating Funds from Singapore to Switzerland: The Legal and Financial Guide

Overview of operations

The capital repatriation process is built around three steps. Here is a summary of the actions to take before you leave.

1. What is Form IR21 (tax clearance) and why is it mandatory?

Before you leave Singapore, your position with the Singapore tax authority must be settled, and your employer handles this. The law requires your employer to withhold all monies due to you (salary, bonus) as soon as it becomes aware of your impending departure (or at the latest one month before your employment ends).

The employer then submits Form IR21. IRAS calculates the tax due for the current year. IRAS then sends the employer a Clearance Directive: either a Directive to Pay Tax (the amount to be paid over to IRAS) or a Notification to Release Monies (the sums to be paid to you).

According to IRAS, the form must be filed at least one month before the end of the employment. Late filing is an offence, for which IRAS may offer a composition fine of up to 5,000 SGD per offence.

2. How do you withdraw your SRS and CPF when leaving Singapore?

Your local retirement savings often make up the largest share of the capital to be repatriated.

The case of the SRS (Supplementary Retirement Scheme)

The SRS is a voluntary scheme popular with expats for its tax advantages. When returning permanently to Switzerland, a foreigner can withdraw their entire SRS balance in one go.

• If the account is less than 10 years old: an early withdrawal penalty of 5% applies to the amount withdrawn.
• If the account is at least 10 years old: the penalty is waived and only 50% of the amount withdrawn is taxed, provided you have been neither a citizen nor a permanent resident of Singapore during the 10 years preceding the withdrawal.
• In all cases: tax is withheld at source at the time of withdrawal, at the non-resident rate, i.e. 24% according to IRAS.

The case of the CPF (Central Provident Fund)

If you had obtained Permanent Resident (PR) status and decide to renounce it to return to Switzerland, you are entitled to withdraw all of your CPF savings (Ordinary, Special and MediSave accounts). This withdrawal is generally tax-exempt in Singapore, but its tax treatment in Switzerland should be checked with your canton's tax authority if you are already resident there when you withdraw.

For a renunciation of permanent residence since 1 April 2024, the CPF Board states that the account can be closed and the savings transferred to your bank account once the renunciation is completed; otherwise, it is closed automatically the following month. An application takes about 12 weeks to process on average: it is best filed before leaving Singapore, because a form completed abroad requires additional certification, for example at a Singapore overseas mission, and may incur fees.

3. How do you convert SGD into CHF while keeping exchange costs down?

Once the funds are released (current accounts, property sale, SRS/CPF), the key stage of repatriation begins. The most common and most expensive mistake is to ask a Singapore bank to make a SWIFT transfer directly in Swiss francs (CHF).

The ibani solution: a published margin

To counter this erosion of your capital, ibani, a Swiss financial intermediary affiliated with SO-FIT, a self-regulatory organisation recognised by FINMA, offers an alternative whose margin is published in advance. The process is as follows:

1. You transfer your SGD to your ibani account.
2. ibani converts the funds at the real market rate, plus a margin of 0.40% to 0.15% depending on the amount.
3. The funds converted into CHF are then transferred to your bank account in Switzerland.

Repatriation cost comparison (SGD to CHF simulation)

Frequently asked questions

What is the IR21 form required by Singapore?

Form IR21 (tax clearance) is a legal requirement of IRAS, Singapore's tax authority. When a foreign employee leaves their job, the employer must file it at least one month before the employment ends and withhold all monies due to the employee until IRAS issues the Clearance Directive, which states the tax to be paid over and the sums to be released to the employee.

Can I withdraw my CPF or SRS when leaving Singapore?

Yes, under conditions. A permanent resident who renounces that status can close their CPF account and transfer all of their savings to their bank account. For the SRS, a foreigner can withdraw the whole balance in one go: without penalty and with 50% of the amount taxed if the account is at least 10 years old, otherwise with a 5% penalty. Tax is withheld at source at the 24% rate applicable to non-residents.

What framework applies in Switzerland to a currency exchange intermediary like ibani?

In Switzerland, financial intermediaries within the meaning of art. 2 para. 3 of the Anti-Money Laundering Act (AMLA), including those that carry out currency exchange, must join a self-regulatory organisation (SRO) recognised by FINMA (art. 14 AMLA); the SRO monitors compliance with that act. ibani is a financial intermediary within the meaning of art. 2 para. 3 AMLA, affiliated with the SRO SO-FIT. ibani is not a bank.

How much does converting SGD into CHF cost?

It all depends on the margin charged on the exchange rate. Banks regularly apply a margin of 1.5% to 2.5% on a SWIFT transfer in francs: at 1.5%, exchanging 100,000 SGD costs about 1,500 SGD. With ibani, the conversion is made at the real market rate, plus a margin of 0.40% to 0.15% depending on the amount, i.e. at most 400 SGD on 100,000 SGD.

How long should you allow to repatriate your funds from Singapore?

Allow about three months for a complete file. The employer must file Form IR21 at least one month before your last working day, and the last salary remains held until the Clearance Directive. The CPF Board states an average processing time of 12 weeks to close a CPF account, which is why it makes sense to apply before leaving Singapore.

Is there a tax treaty between Switzerland and Singapore?

Yes. Switzerland and Singapore signed a convention for the avoidance of double taxation with respect to taxes on income on 24 February 2011, which entered into force on 1 August 2012 (SR 0.672.968.91). It allocates between the two states the right to tax each category of income. For the treatment of a CPF or SRS withdrawal in your Swiss tax return, check with your canton's tax authority.