Frequently Asked Questions
What is the Not Ordinarily Resident (NOR) scheme?
New NOR scheme (with effect from YA 2009)
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 is specifically targeted at individuals who are not ordinarily resident in Singapore. The scheme gives special benefits that effectively reduce your tax liability. This scheme has taken effect from the Year of Assessment (YA) 2003 (basis period 01 Jan 2002 to 31 Dec 2002).
New NOR scheme (with effect from YA 2009)
The changes announced in 2008 Budget to the NOR scheme will take effect from YA 2009. For ease of reference, the scheme before and after incorporating the changes announced are referred to as "old NOR scheme" and "new NOR scheme". For details, please refer to the NOR circular (330KB).
Summary of Transitional Rules Arising from the 2008 Budget Changes
First YA that NOR taxpayer enjoys / has enjoyed NOR tax concession
|
Types of tax concession that NOR taxpayer enjoys / has enjoyed |
Scheme Applicable |
| YA 2009 or later |
Either TA* or NMOCS** or both concessions
|
New NOR scheme.
|
| YA 2008 or earlier |
Only TA* |
New NOR scheme applies from YA 2009 unless taxpayer opts out by 15 Apr 2009 to remain under the old NOR scheme.
|
| YA 2008 or earlier |
Only NMOCS** |
Old NOR scheme continues to apply unless taxpayer opts into the new NOR scheme by 15 Apr 2009.
|
| YA 2008 or earlier |
Both TA* and NMOCS** |
New NOR scheme applies from YA 2009 unless taxpayer opts out by 15 Apr 2009 to remain under the old NOR scheme.
|
TA* refers to Time Apportionment of Singapore employment income.
NMOCS** refers to tax exemption of employer's contribution to Non-mandatory Overseas Contribution Scheme.
This is a one-time election. No appeal appeal or late application will be considered. If you have not made any election and
a) You are an exisiting NOR taxpayer who have enjoyed only non-mandatory overseas contribution scheme concession prior to YA 2009, the old NOR scheme will continue to apply; or
b) You are an existing NOR taxpayer who have enjoyed either time-apportionment concession or both time-apportionment concession and non-mandatory overseas contribution scheme concession prior to YA 2009, you will be placed under the new NOR scheme.
As long as you have not enjoyed any NOR tax concessions prior to YA 2009, the new NOR scheme will apply to you. No election will be given to opt out of the new scheme.
Do I qualify for the NOR scheme?
You can opt for the NOR scheme from any 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 2007
(> 183 days) |
Yes |
Resident (under the 183-day resident rule) |
YA 2008 to 2012 |
YA 2008 to 2012 |
01 Aug 2007
(< 183 days) |
Yes |
Non-Resident (under the 183-day resident rule) |
YA 2009 to 2013 |
YA 2009 to 2013 |
01 Aug 2007
(< 183 days) |
Yes |
If you opt to be treated as Resident under the three-year resident concession |
YA 2008 to 2012 |
YA 2009 to 2012
(You can enjoy the NOR concession only from YA 2009) |
How long is the NOR period?
If your application is successful, you will be given the NOR status for five consecutive YA, starting from the YA in which you first met the criteria.
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
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
| Old NOR Scheme |
New NOR Scheme |
| (i) You must have spent at least 90 days outside Singapore for business reasons. |
(i) You must have spent at least 90 days outside Singapore for business reasons. |
| (ii) Your tax on your total Singapore employment income must be greater than 10% of your total Singapore employment income. |
(ii) 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
| Old NOR Scheme |
New NOR Scheme |
Income that will be taxed in full includes:
* Leave pay (commuted leave);
* Leave passage;
* Director's fees; and
* All benefits-in-kind (BIK) whose values are independent of whether or not you have travelled out of Singapore for business reasons, such as accommodation, car benefit,etc.
|
Income that will be taxed in full are:
* Director's fees; and
* Any amount of income tax payable in Singapore that is borne, directly or indirectly, by your employer.
|
Your presence in Singapore for any part of a day shall be counted as one day in Singapore. Alternatively, as an administrative concession, you may choose to count only the day of arrival in Singapore as a day in Singapore (i.e., the day of departure from Singapore will be counted as a day outside Singapore. However, if you have left Singapore and returned on the same day, this will be considered as a day in Singapore).
Example:
You left Singapore on 23 May and returned on 26 May. 23 May is not counted as a day in Singapore. The number of days outside Singapore is three days (23 May to 25 May).
Just enter your travel days in the NOR Travel Calculator (33KB). The NOR travel calculator will compute the number of days outside Singapore for you.
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 any contribution made by your employer to any non-mandatory overseas contribution scheme. The amount of exemption is subject to a cap.
Qualifying Criteria
| Old NOR Scheme |
New NOR Scheme |
| (i) You are not a Singapore citizen or Permanent Resident |
(i) You are not a Singapore citizen or Permanent Resident |
| (ii) N.A. |
(ii) Your Singapore employment income must be at least $160,000. |
| (iii) N.A. |
(iii) Your employer should only claim deduction on contributions made to non-mandatory overseas pension or provident funds and social security schemes in excess of the NOR cap. |
The NOR cap is to be determined based on the total employer contribution to an approved mandatory or a non-mandatory overseas contribution scheme or to both. It is computed based on CPF (Central Provident Fund) capping rules as if the employer had made the contribution to the CPF for a Singapore citizen as required under the CPF Act.
If you do not claim the NOR tax exemption, you will be taxed on your employer’s contribution to an overseas pension fund or social security scheme in the year of contribution unless:
- The contribution is made under Social Security Schemes operated by the government of your home country and such contribution is compulsory even when you are working outside your home country; and
- The contribution is not borne by or no deduction is claimed by any company in Singapore.
Please submit these documents to support your claim that the contribution is not taxable:
- State regulations of your home country; and
- The relevant letters from your employer to confirm that the company is not claiming tax deduction for the contribution made.
Generally, such contributions made by employers in line with social practice are not considered mandatory. You can claim NOR tax exemption on employer’s contribution to non-mandatory overseas pension fund or social security scheme subject to a cap.
How do I apply for the NOR status and tax concessions?
Submit the Application for Not Ordinarily Resident (NOR Scheme) (244KB), Appendices and Form IR8A/Appendix 8A/8B with your annual tax return by 15 Apr of that Year of Assessment in which you have qualified for the scheme and/or tax concessions.
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) (244KB) by 15 Apr each year during the NOR status period in which you will be claiming the tax concessions.
Example:
| 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 2008 |
15 Apr 2008 |
15 Apr 2008 |
| Year 2009 |
Not Applicable |
15 Apr 2009 |
| Year 2010 |
N.A. |
15 Apr 2010 |
| Year 2011 |
N.A. |
15 Apr 2011 |
| Year 2012 |
N.A. |
15 Apr 2012 |
We review late submissions for the NOR status, but you will not enjoy the tax concession(s) for the Year(s) of Assessment concerned.
Example:
| If you file on |
NOR status applied for |
NOR concessions applied for |
NOR status granted for |
NOR concession granted for |
| 08 Nov 2008 |
YA 2008 to 2012 |
YA 2008 |
YA 2008 to 2012 |
No concession |
| 14 Apr 2009 |
YA 2008 to 2012 |
YA 2008 & 2009 |
YA 2008 to 2013 |
YA 2009 |