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Individuals (Foreigners)

 

Frequently Asked Questions

 What is the Not Ordinarily Resident (NOR) scheme? 
 Do I qualify for the NOR scheme? 
 How long is the NOR period? 
 What are the tax concessions available under the NOR scheme? 
 Time apportionment of Singapore employment income 
 Tax exemption of employer’s contribution to non-mandatory overseas pension fund or social security scheme 
 How do I apply for the NOR status and tax concessions?

 What is the Not Ordinarily Resident (NOR) scheme?

The NOR scheme extends favourable tax treatment to qualifying individuals for a period of five years.

 Do I qualify for the NOR scheme?

You can use the  NOR status calculator (92KB) to check your eligibility.

You can qualify for the NOR scheme from any Year of Assessment (YA) if you meet the following criteria:

  • You are a tax resident for that YA; and
  • You are a non-resident for three consecutive YAs immediately before that.
    Example:

    If you commenced employment in Singapore on You are non-resident for three years prior to your arrival Tax residence in the year of arrival You can qualify for NOR status from You can enjoy NOR concessions from
    01 Jan 2013
    (> 183 days)
    Yes Resident (under the 183-day resident rule) YA 2014 to 2018 YA 2014 to 2018
    01 Aug 2013
    (< 183 days)
    Yes Non-Resident (under the 183-day resident rule)

    YA 2015 to 2019

    (If you have been assessed as a resident in the year of arrival, your assessment will be revised to assess you as a non-resident and additional tax will be payable)

    YA 2015 to 2019
    01 Aug 2013
    (< 183 days)
    Yes If you opt to be treated as Resident under the three-year resident concession YA 2014 to 2018 YA 2015 to 2018

    (You can enjoy the NOR concession only from YA 2015)

     

 How long is the NOR period?

If your application is successful, you will be given the NOR status for five consecutive YAs, starting from the YA in which you first meet the criteria.

 What are the tax concessions available under the NOR scheme?

You can use the  NOR status calculator (92KB) to check your eligibility.

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
    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, as a resident Singapore employee.

    Qualifying Criteria
    • You must have spent at least 90 days outside Singapore for business reasons; and
    • Your total Singapore employment income must be at least $160,000.  If the tax on the apportioned income is less than 10% of your total employment income, you will still be subject to a tax of 10% of your total employment income.

     

    Income Not Apportionable
    • Director's fees; and
    • Any amount of income tax payable in Singapore that is borne, directly or indirectly, by your employer.

     

     

     

     


  •   Tax exemption of employer’s contribution to non-mandatory overseas pension fund or social security scheme 
    Under this concession, if you are a resident Singapore employee, tax exemption will be given to you on contribution made by your employer to any non-mandatory overseas contribution scheme.  This is provided that your employer does not claim a deduction for the contribution. The amount of exemption is subject to a cap.

Qualifying Criteria

  • You are not a Singapore citizen or Permanent Resident; and
  • Your Singapore employment income must be at least $160,000; and
  • Your employer must not claim a deduction in contribution made to non-mandatory overseas pension or provident funds and social security schemes up to the NOR cap.

 

  •  New If you are employed by an investment holding company or a tax-exempt body, you would not be able to enjoy the tax concession on the contributions made by your employer to any non-mandatory overseas contribution scheme on or after 1 Jan 2014. 
  • If you are employed by a service company, you will continue to enjoy this tax concession provided your company prepares its tax computation based on "normal trading company" ("NTC") basis from YA 2016 (i.e. for accounting period ending in 2015) onwards.  Employees of a service company that adopts the "cost plus mark-up" ("CM") basis of tax assessment will not be able to enjoy this tax concession after YA 2015 (i.e. for accounting period ending in 2014).

  • Example 1

    You are employed by a service company that adopts the "cost plus mark-up" ("CM") basis of tax assessment and its accounting period ends on 31 Jan.  Your employer contributed $2,000 and $1,000 to your non-mandatory overseas contribution scheme on 31 Jan 2014 and 31 Aug 2014 respectively.  Your employer did not claim a deduction for the contribution.  You can enjoy tax exemption on the contribution of $2,000 made on 31 Jan 2014.  However, as the contribution of $1,000 on 31 Aug 2014 was made during your company's accounting period ending 2015 (basis period 1 Feb 2014 to 31 Jan 2015) and your company adopts the "cost plus mark-up" ("CM") basis of tax assessment, you would not be able to enjoy the NOR tax concession on the contribution of $1,000.

      

  • Example 2

    Same information as in Example 1 except that your employer decides to change its basis of tax computation from "cost plus mark-up" ("CM") to "normal trading company" ("NTC") with effect from Year of Assessment 2016 (basis period 1 Feb 2014 to 31 Jan 2015).  In this case, you can enjoy the NOR tax concession on the contribution of $1,000 made on 31 Aug 2014 and hence you will not be taxed on the total contribution of $3,000.



      

           

 Q2. How is the NOR cap computed?

 

 


 

 

 


 

 

 


 How do I apply for the NOR status and tax concessions? 

Submit the Application for Not Ordinarily Resident (NOR Scheme)  (246KB), Appendices and Form IR8A/Appendix 8A/8B with your annual tax return by 15 Apr of the YA in which you have qualified for the scheme and/or tax concessions. If you e-File your tax return, please fax or send the application form to IRAS by 18 Apr of that YA. You can use the NOR status calculator  (92KB) to check your eligibility.

If your application is successful and you are given the NOR status, you are required to submit the Application for Not Ordinarily Resident (NOR Scheme)  (246KB) by 15 Apr (18 Apr if you e-File your tax return) each year during the NOR status period in which you will be claiming the tax concessions. If the application form is not submitted by the due date, no tax concession would be allowed to you.

Example (if you are submitting paper tax return):

During the annual filing cycle Due date for application for
NOR status ( one-time application together with annual tax return) NOR concessions ( yearly application together with annual tax return)
Year 2014 15 Apr 2014 15 Apr 2014
Year 2015 Not Applicable 15 Apr 2015
Year 2016 Not Applicable 15 Apr 2016
Year 2017 Not Applicable 15 Apr 2017
Year 2018 Not Applicable 15 Apr 2018

 


 

 

 


 

 

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Last Updated on 26 May 2014


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