not ordinarily resident nor singapore tax

Not Ordinarily Resident (NOR) scheme

Qualifying individuals can enjoy favourable tax treatment under the NOR Scheme. Once granted, the NOR status is valid for a period of 5 consecutive years.

A NOR taxpayer can enjoy time apportionment of his Singapore employment income such that Singapore tax applies only to income corresponding to the number of days spent in Singapore. This is relevant especially for frequent business travellers.

As a NOR taxpayer, you can also enjoy tax exemption on contributions made by your employer to non-mandatory overseas pension fund or social security scheme.

We can help you to prepare your tax return to incorporate the relevant NOR applications.

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Essential information

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↓ Qualifying criteria for NOR status

The conditions to qualify for NOR status are:

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.

↓ Time apportionment of Singapore Employment Income Concession

The qualifying criteria 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.

Director's fees and Singapore income tax payable by employer cannot be apportioned.

↓ Tax Exemption of Employer's Contribution to Non-Mandatory Overseas Pension Fund

The qualifying criteria are:

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

The amount of contributions exempted is subject to a cap. The contribution must be borne by a Singapore entity.

↓ NOR status and Tax residency

If you did not apply for NOR status in earlier years but can benefit from NOR concession now, an NOR application may be made this year.

In this case, NOR status will be accorded retrospectively if you qualify. However, NOR tax concessions will not be available for the Years of Assessment that have passed.

If you opted to be treated as Resident under the three-year resident concession for an earlier Year of Assessment, you may have the option of forgoing the concession and be assessed as Non-Resident in the earlier year so as to maximise benefits under the NOR Scheme.

NOR-scheme-timeline

↓ Application deadline

The NOR Application and duly certified Appendices have to be submitted to IRAS together with your annual tax return by 15 April of the assessment year.