1. Purpose

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.

The Growth Dividends will cost the Government $865 million.

2. Eligibility

2.1 Who can receive the Growth Dividends?

To receive the Growth Dividends, you must:

• Be a living Singapore citizen;
• Be aged 21 or above in 2008; and
• Sign up by 31 December 2008 if you did not sign up for GST Credits in 2007. There is no need to separately sign up for your Growth Dividends if you have already signed up for the GST Credits in 2007.

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 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 (www.gstoffset.gov.sg) or by hardcopy forms available at CPFB 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 (www.gstoffset.gov.sg) 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. Amount Of Growth Dividends

3.1 How much Growth Dividends can I get?

The amount of Growth Dividends that you can receive depends on:

1. The Annual Value (AV) of your home in 2007 as assessed by IRAS (based on your NRIC address on 31 December 2007); and
2. Your Assessable Income (AI) for the Year of Assessment 2007; and
3. Your Age in 2008; and
4. Your NS status in 2008.

Structure of Growth Dividends

AV criteria for GD are based on the 2007 AVs.

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 CPFB in mid April 2008 stating the amount of Growth Dividends that you can receive.

4. How to Sign up and Receive your Growth Dividends

4.1 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 (www.gstoffset.gov.sg) or by hardcopy forms available at CPFB 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 (www.gstoffset.gov.sg) 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.

4.2 My father (or immediate family member^*) is bedridden/physically immobile or of unsound mind, and does not have a bank account. How can I help my father encash his Growth Dividends cheque?

Please proceed to the bank issuing the cheque (OCBC), with the following documents:

1. Signed Letter of Authorisation from beneficiary (unless otherwise exempted by doctor’s memo or medical report);
2. Documentary evidence stating your father’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.);
3. Both your original NRICs;
4. Documentary evidence of your relationship e.g. birth certificate, marriage certificate; and
5. Your father’s Growth Dividends cheque.

An administrative fee of $4 is payable at the bank for exchanging Growth Dividends cheques for cash. The fee will be waived for those who are aged 62 and above.

However, if you are unable to fulfill any of the above conditions, please contact our Growth Dividends hotline at 1800-2222888 for further assistance.

^* Immediate family member refers to a parent, child, sibling or spouse.

4.3 My friend (or non-immediate family member) is bedridden/physically immobile or of unsound mind, and does not have a bank account. How can I help my friend encash his Growth Dividends cheque?

As you are not an immediate family member of the beneficiary, please go to any CPF Service Centre with the following documents:

1. Signed Letter of Authorisation from beneficiary (unless otherwise exempted by doctor’s memo or medical report);
2. Documentary evidence stating your friend'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.);
3. Both your original NRICs; and
4. Your friend's Growth Dividends cheque.

At the CPF Service Centre, you would have to sign a Letter of Indemnity. CPF Board will then issue you with an instruction letter to the bank. Please bring the CPF Board's instruction letter to the bank together with your NRIC to encash the Growth Dividends cheque on your friend's behalf.

An administrative fee of $4 is payable at the bank for exchanging Growth Dividends cheques for cash. The fee will be waived for those who are aged 62 and above.

However, if you are unable to fulfill any of the above conditions, please contact our Growth Dividends hotline at 1800-2222888 for further assistance.

4.4 My family member/friend who is overseas did not get a notification letter. How can I help him receive his Growth Dividends?

If your family member/friend has a local bank account:

Please advise him to sign up for his GST Credits via www.gstoffset.gov.sg with his SingPass. He will automatically be eligible for the Growth Dividends once he has signed up. 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. 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 your family member/friend does not have a local bank account:

Step 1:

Please advise him to sign up for his GST Credits via the Internet with his SingPass and to select the cheque option when prompted. He will automatically be eligible for the Growth Dividends once he has signed up. If he does not have SingPass, he can apply for it online and it will be mailed to his NRIC address.

Step 2A:

The cheque would be sent to your family member/friend's correspondence address as maintained with the CPF Board (if any) or NRIC address. Your family member/friend 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.

OR

Cheque encashment by immediate family member

Step 2B(i):

However, if your immediate* family member would like you to exchange his Growth Dividends cheque for cash on his behalf, please proceed to the bank issuing the cheque (OCBC), with the following documents:

1. Original signed copy of his Letter of Authorisation stating his overseas address and authorising you to exchange his Growth Dividends cheque for cash;
2. Photocopy of your immediate* family member’s valid passport (personal particulars page).
3. Your original NRIC;
4. Documentary evidence of your relationship e.g. birth certificate, marriage certificate; and
5. Your immediate^* family member’s Growth Dividends cheque.

An administrative fee of $4 is payable at the bank for exchanging Growth Dividends cheques for cash. The fee will be waived for those who are aged 62 and above.

However, if you are unable to fulfill any of the above conditions, please contact our Growth Dividends hotline at 1800-2222888 for further assistance.

^* Immediate family member refers to a parent, child, sibling or spouse.

OR

Cheque encashment by friend/ non-immediate family member

Step 2B(ii):

However, if your friend (or non-immediate family member) would like you to exchange his Growth Dividends cheque for cash on his behalf, please go to any CPF Service Centre with the following documents:

1. Original signed copy of his Letter of Authorisation stating his overseas address and authorising you to exchange his Growth Dividends cheque for cash;
2. Your original NRIC; and
3. Photocopy of your friend's (or non-immediate family member) valid passport (personal particulars page).

At the CPF Service Centre, you would have to sign a Letter of Indemnity. CPF Board will then issue you with an instruction letter to the bank. Please bring the CPF Board's instruction letter to the bank together with your NRIC to encash the Growth Dividends cheque on your friend's behalf.

An administrative fee of $4 is payable at the bank for exchanging Growth Dividends cheques for cash. The fee will be waived for those who are aged 62 and above.

5. Annual Value

5.1 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.

5.2 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.

5.3 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.

5.4 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.

6. Assessable Income

6.1 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.

6.2 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).

6.3 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.

6.4 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.

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 and 2008 GST Credits via the website.

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, then 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.

The payment tranches and their corresponding eligibility cut-off dates are shown in the table below.

9. Others

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 (www.gstoffset.gov.sg) 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.