|
1. The Not Ordinarily Resident (NOR) Taxpayer
Scheme extends favourable tax treatment to qualifying
individuals for a period of 5 years of assessment.
An NOR taxpayer must meet the following criteria:
| |
i. |
|
He must not have been a Singapore tax resident
in the 3 years of assessment before the year
he first qualifies for the NOR scheme; and |
| |
ii. |
|
He must
be a tax resident for the year of assessment
in which he wishes to qualify for the NOR
scheme. |
2. An NOR taxpayer will enjoy the benefit of
time apportionment of income only if he meets
additional conditions: he must spend more than
90 days outside Singapore for business; and he
must pay at least a floor tax rate of 10% on his
total employment income. The time apportionment
incentive means he pays income tax on only a portion
of his employment income in Singapore. The taxable
amount will be based on the number of days he
spends in Singapore per calendar year.
3. In addition, an NOR taxpayer will enjoy the
following benefits:
| |
i.
|
|
Favourable tax treatment of pre-assignment
income
Individuals who relocate to Singapore are
currently taxed on the income they remit
into Singapore even when that income was
earned prior to their relocation to Singapore.
The remittance of such pre-assignment income
will now be exempt from tax.
|
| |
ii.
|
|
Favourable tax treatment of contributions
to overseas pension funds
Subject to the cap the employer's contributions
to CPF for Singaporeans, the employer's
contributions to overseas pension funds
on behalf of a non-citizen NOR taxpayer
will be exempt from income tax in the hands
of the employee.
|
|
