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Not Ordinarily Resident 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).

You can opt for the NOR scheme from any YA if you meet the following criteria:

1. You are a tax resident for that YA; and
2. You are a non-resident for three consecutive YAs immediately before that.

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.


Tax concessions available under the NOR scheme

1. 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.

To qualify for this concession, you must have spent at least 90 days outside Singapore for business reasons and your tax on your total Singapore employment income must be greater than 10% of the total Singapore employment income.

However, the income that is not apportionable and 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.

Calculation of days

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).


2. 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.

Singapore citizens and permanent residents do not qualify for this tax concession.

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.