Singapore Government Securities

Singapore Government Securities are sound investment choices with its triple A credit rating. They are interest-earning debt instruments issued by the Monetary Authority of Singapore on behalf of the Singapore Government.

You'll enjoy:

• Timely payment of interest on the bond and the principal payment on maturity as SGS are guaranteed by the Singapore Government
• A safe and secure alternative to stocks or equities
• Diversification of your investment portfolio
• Opportunities for capital gains when prices of securities rise in response to a fall in interest rates. (Conversely, there may be capital losses if interest rates rise)
• Liquidity as SGS can be readily sold for cash before their maturity date

Singapore Government Securities or SGS come in two forms:

On maturity

• On maturity, the full face (par) value of the Government Bond and Treasury Bill is paid to the investor

Taxation for residents¹

• Interest and discount income derived from SGS on or after 1st January 2004 by a resident individual, except where such income is derived through a partnership in Singapore or derived from the carrying on of a trade, business or profession, is exempt from tax.
• Interest and discount derived from SGS issued on or after 28th February 1998 by Financial Institutions, Corporations and Bodies of Persons¹ is subject to Singapore tax at a concessionary rate of 10%.
  
  ¹ Residents, body of persons, and permanent establishments are as defined in the Income Tax Act (Chapter 134)

Taxation for non-residents

• Interest and discount income payable to non-residents (without any permanent establishments¹ in Singapore) on Qualifying Debt Securities, which include SGS issued during the period from 28 February 1998 to 31 December 2013, is exempted from withholding tax. For non-residents with permanent establishments¹ in Singapore, the withholding tax exemption is subject to the conditions that the debt securities issued during the period from 27 February 1999 to 31 December 2013 and are not purchased using funds from Singapore operations.
  
  ¹ Residents, body of persons, and permanent establishments are as defined in the Income Tax Act (Chapter 134)

Capital gains

• Capital gains are not taxed in Singapore

Custody

• The scriptless SGS will be credited to your Central Depository (CDP) Securities Account and reflected in your CDP statement.

Requirements

• You must be at least 18 years old and not an undischarged bankrupt.
• There are no restrictions on foreign investors
• A minimum investment sum of S$1,000.
• You need to open a Central Depository (CDP) Securities Account.
• Funds from Central Provident Fund (CPF) and Supplementary retirement Scheme (SRS) account can be used to purchase Government bonds and Treasury bills. In order to transact, you need to open a CPF Investment Account / SRS Account with UOB.
• You may either transact SGS on a secondary market through us directly, or tender for new and re-opened SGS issues through our Automated Teller Machines (ATM) and UOB Internet Banking.

SGS Bonds & T-bills Application submission cut-off time

^Business day = Mon to Fri, excluding Public Holidays

*Debt Securities Account for custody of the securities

This advertisement has not been reviewed by the Monetary Authority of Singapore.