Personal Taxation
In general, individuals are liable to Singapore income tax only on income accruing in or derived from Singapore.
Not Ordinarily Resident (NOR) Scheme
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Not Ordinarily Resident (NOR) Scheme
The NOR scheme has ceased, as announced in Budget 2019. The last NOR status granted will be valid from YA 2020 to YA 2024. Individuals who have qualified for the NOR status will continue to enjoy NOR tax concessions until their NOR status expires, if they continue to meet the conditions of the concessions.
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.
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