Guide to Singapore Not Ordinarily Resident Scheme (NOR Scheme)

Singapore's Not Ordinarily Resident (NOR) Scheme is a unique tax incentive designed to attract top global talent and senior executives to work in Singapore. The scheme provides significant tax benefits for qualifying individuals, making it a compelling option for expatriates and foreign professionals.

What is the NOR Scheme?

The NOR Scheme is a tax concession program introduced by the Singapore government to encourage highly skilled global talent to relocate and contribute to the local economy. It offers qualified individuals significant tax savings for a period of five consecutive years.

Key Benefits of the NOR Scheme

• Time Apportionment of Employment Income: Tax is levied only on the portion of your employment income attributable to the number of days you worked in Singapore.
• Tax Exemption on Employer Contributions: Employer contributions to non-mandatory overseas pension funds or social security schemes are exempt from tax.

Eligibility Criteria

• Be a Tax Resident in Singapore (meet the 183-day rule).
• Not have been a tax resident for the past three years.
• Earn an annual income exceeding S$160,000.

Application Process

• Submit your application to IRAS by 15 April of the year of assessment.
• Provide supporting documents (income proof, residency status).
• Await IRAS approval (valid for five years).

Tax Obligations

• Declare worldwide income.
• Maintain time apportionment records.
• File annual tax returns on time.

Common Mistakes to Avoid

• Failing to meet the 183-day residency rule.
• Incomplete documentation.
• Misreporting days worked in Singapore.

Expiry of the NOR Scheme

The NOR Scheme ceased after the Year of Assessment 2020. However, individuals who qualified before expiry can enjoy the full five-year benefit.

Why Consider the NOR Scheme?

• Senior executives with global responsibilities.
• Professionals who frequently travel for work.
• High-income earners optimizing their tax position.

How Apexia Corporate Advisory Can Help

• Eligibility Assessment: Evaluate your qualification for the NOR Scheme.
• Application Support: Assistance with IRAS submissions.
• Tax Compliance: Ensure accurate reporting and compliance.
• Advisory Services: Personalized tax optimization strategies.