The Not Ordinarily Resident (NOR) scheme extends favourable tax treatment to qualifying individuals for a period of 5 years of assessment. A NOR taxpayer will enjoy the benefit of time apportionment of employment income, that is, he pays income tax on only that part of his employment income that corresponds with the number of days he spends in Singapore. In addition, the NOR taxpayer gets to enjoy tax exemption on contributions made by the employer to an overseas pension fund which would otherwise be taxable in his hands.
NOR status
To enjoy the tax concessions, you have to apply for the NOR status. To qualify, you must be a non Singapore tax resident (NR) in the past 3 years of assessment (YA); and in that YA in which you first qualify for the NOR status, you must be a Singapore tax resident (R).
If you meet these qualifying conditions, you will be accorded the NOR status for 5 consecutive YAs.
To retain your status as a NOR taxpayer, you are only required to be a tax resident in the first YA. You are not required to be tax resident throughout the 5-year qualifying period.
Example
You can use the NOR status calculator (92KB) to check your eligibility.
How to apply for NOR status (one-time application)
Send the completed Application Form for NOR Scheme and your annual tax return to IRAS by 15 April of the YA that you have qualified for the scheme . If you e-File your tax return, please fax or send the application form to IRAS by 18 Apr of that YA. Late applications will be rejected. If your application for NOR Status is successful, it will run for 5 consecutive years. You need not apply for the status every year.
You can use the NOR status calculator (92KB) to check your eligibility.
What are the tax concessions available under the NOR scheme
If you are given the NOR status, you can enjoy one or more of the following tax concessions during the NOR period as long as you are a tax resident in the respective YA:
| Time apportionment of Singapore employment income |
Tax exemption of employer's contribution to non-mandatory overseas pension fund or social security scheme
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Under this concession, you will not be taxed on the portion of your Singapore employment income that corresponds to the number of days you have spent outside Singapore for business reasons.
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Under this concession, your employer’s contributions made to an overseas pension fund on your behalf will be exempt from income tax. This is subject to the cap for employer’s contributions to Central Provident Fund for Singaporeans.
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Qualifying conditions:
- You must have spent at least 90 days outside Singapore for business.
- You must have a minimum employment income of $160,000.
Where the tax on your apportioned income is below 10% of your total Singapore employment income, you will be subject to a tax of 10% of your Singapore employment income.
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Qualifying conditions :
- You are not a Singapore citizen or Permanent Resident
- You must have a minimum employment income of $160,000.
- Your employer should only claim a tax deduction on these contributions in excess of the cap.
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How to apply for NOR concessions (yearly application)
You are required to apply for the NOR concession by 15 April (18 April if you e-File your tax return) each year during the NOR status period in which you will be claiming the tax concessions. The application form requires your Singapore employer to certify that the days spent outside of Singapore are for business. Late applications will be rejected.
What happens after the 5-year qualifying period
The NOR status will lapse. You can apply for the NOR status anew if you meet the qualifying conditions again. In considering the qualifying 3 YAs that you need to be a non-resident, all YAs for which you are a non-resident, including any such YA that may fall within an earlier 5-year qualifying period for which you were accorded the NOR status, will be taken into account in deciding if you qualify as an NOR taxpayer for any subsequent 5-year period.
Example
