The NOR taxpayer scheme was introduced in the Budget Statement of 2002. This scheme provides tax privileges to eligible individuals for a term of 5 YAs (Year of Assessment). With the Not Ordinarily Resident Scheme, you will qualify for benefits like time apportionment on income derived from your employment and tax exemption on employer contributions that were made to a pension fund (overseas) for 5 continuous years.
On meeting the required eligibility criteria, you’ll be given the “NOR” status for 5 continuous Years of Assessment (beginning from the Year of Assessment during which you met the criteria initially). Soon after the 5-year eligible period ends, your NOR status will expire. You will have to apply for the NOR status again by meeting the eligibility criteria afresh.
When you’re being considered for the NOR status for the next 5-year period, for you to meet the condition of being a non-resident for 3 YAs, all Years of Assessment during which you were a non-resident will be taken into account. This includes any such Year of Assessment that might come under the prior 5-year eligible period during which you had the NOR status.
When you’re a resident Singapore worker, part of your income pertaining to your employment in Singapore will not fall under the “taxable” category for the number of days you spent out of Singapore for employment-related purposes.
When you’re present in Singapore during any part of the day, it will be considered as a day spent by you in Singapore. On the other hand, as a part of the administrative concession, you will have a chance to count your arrival day in Singapore as the only day you were present in Singapore. The day you depart from Singapore will be considered as a day you spent out of Singapore.
In case you made an exit from Singapore and came back on the same day, this day will be referred to as a day you spent in Singapore. With the help of the “NOR travel calculator”, you can calculate the number of days you spent out of Singapore.
If you’re a resident Singapore worker, based on this scheme you’ll be approved with tax exemption for a contribution your employer makes to any non-mandatory overseas Social Security Scheme or a pension fund. Also, you’ll be exempted from paying tax only when your employment firm decides to not claim any kind of a deduction on the contribution made. A cap will be applicable on the tax exemption amount you’ll be granted with.
In case your employer has not recharged or charged the contribution to a Singapore entity, you’ll not qualify for the tax concession on a contribution that was done by your company on or post 1 January 2014.
It is calculated depending on the total contribution made by the employer to an authorised mandatory/non-mandatory contribution scheme (overseas) or to both. The calculation will be made depending on the capping rules of the Central Provident Fund as if the contribution was made by the employer to the CPF account of a Singapore citizen as applicable under the Central Provident Fund Act.
You will not qualify for tax concession if you do not submit your application form within the specified timeline.
When you submit your application for the NOR status after the due date, your submission will be reviewed only for the NOR status. You’ll not qualify for any kind of tax concession(s) for the respective Years of Assessment.
Below are a few examples for your quick reference:
|Date of Filing Tax Return||NOR Status you Applied||NOR Concessions you Applied||NOR Status Approved||NOR Concession Approved|
|8 September 2016||YA 2016 to 2020||YA 2016||YA 2016 to 2020||Not eligible for concession|
|13 April 2017||YA 2016 to 2020||YA 2016 & 2017||YA 2016 to 2020||YA 2017|
In order to enjoy all the benefits offered under this scheme, file for your NOR status within the deadlines applicable for e-filing and paper filing.