Not Ordinarily Resident (NOR) scheme

The NOR scheme is a tax scheme for individuals. If you qualify for this scheme, you will be accorded NOR status for a period of 5 years during which you can avail of the NOR tax concessions under the scheme.

The 2 NOR tax concessions are Time apportionment of Singapore Employment Income and Tax Exemption of employer's contribution to non-mandatory overseas pension fund or social security scheme.

 

NOR status

The following conditions must be fulfilled in order to qualify for NOR status:

1) You are a tax resident in the Year of Assessment (YA) you first qualify for NOR status

2) You are a non-tax resident for the past 3 YAs.

An example would be as illustrated below, where you are a tax resident in the YA that you arrive and commence employment in Singapore, and you are a non-tax resident for the preceding 3 YAs. NOR status will be accorded from the YA in which you arrived in Singapore.

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A point to note is that the application for NOR status need not be made in the first YA in which you meet the qualifying conditions. Hence, if you have not submitted any application previously, but find in subsequent years that you qualify, an application can still be made. In this case, NOR status will be accorded retrospectively if you qualify. However, NOR tax concessions will not be available for the YA(s) that have passed. 

 

 

NOR Tax concessions

With NOR status, you may avail of NOR tax concessions on condition that you are a tax resident in the relevant YA and you meet the conditions for the respective concession.

 

Time apportionment of Singapore Employment Income

 
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If a significant part of your job involves traveling out of Singapore for business, this concession may be useful for you. Under this concession, you will not be taxed on the portion of your Singapore employment income that corresponds to the number of days you spent outside Singapore for business reasons in relation to your Singapore employment.

The conditions are:

1) You have spent at least 90 days outside Singapore for business reasons

2) Your Singapore employment income is at least $160,000

If the resulting tax computed is less than 10% of your total employment income, you will be taxed at 10% of your total employment income instead.

 

Tax Exemption of Employer's Contribution to Non-Mandatory Overseas Pension Fund or Social Security Scheme

 
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This concession would be applicable if your employer makes contributions to your non-mandatory overseas pension fund or social security scheme. Under this concession, the contributions (subject to a cap) would be tax exempted in your hands if the following conditions are met:

1) You are not a Singapore citizen or Permanent Resident

2) Your Singapore employment income is at least $160,000

3) Your employer does not claim tax deduction on the contributions

 

 

How we can help

If you qualify for the NOR scheme, it may be beneficial to make an application with the tax authority in Singapore (IRAS). We can assist you with your application for NOR status. We can also assist with the preparation of your tax return and yearly application for NOR tax concession. Call us at 6811 5617 or drop us a note.

 

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