Under the NOR scheme, the following tax concessions may be applied on a yearly basis if deemed beneficial:
a) Time Apportionment of Singapore Employment Income
Under the time apportionment concession, a resident NOR taxpayer will not be taxed on the portion of his Singapore employment income that corresponds to the number of days he/she has spent outside Singapore for business reasons provided that:
- He/she has spent at least 90 days outside Singapore for business; and
- His/her Singapore employment income threshold is at least $160,000.
Where tax on their apportioned Singapore employment income is less than 10%, they will be subject to a floor tax rate of 10% of total Singapore employment income.
This scheme is especially beneficial for expats in Singapore who must travel extensively (i.e. regional role, etc.).
b) Tax Exemption of Employer's Contribution to Non-Mandatory Overseas Pension Fund or Social Security Scheme
Under this concession, tax exemption is granted to an employee with tax NOR status on any contribution (subject to a cap) made by the employer to any non-mandatory overseas pension funds or social security scheme, provided that he/she is neither a Singapore Permanent Resident nor a Singapore citizen and the following conditions are met:
- His/her Singapore employment income threshold is at least $160,000; and
- The employer must not claim a deduction on contributions made to non-mandatory overseas pensions, provident funds or social security schemes.