Not Ordinarily Resident (NOR) Scheme

Where an individual has not been a tax resident in Singapore for the 3 immediate preceding years, he/she may qualify for the Not Ordinarily Resident (NOR) status for 5 consecutive years from the year that they are a tax resident of Singapore.

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.