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- 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
- He must be a tax resident for the year of assessment
in which he wishes to qualify for the NOR scheme.
A NOR taxpayer will enjoy the benefit of time apportionment
of employment income only if he meets additional conditions:
he must spend more than 90 days outside Singapore for
business; and he must have a minimum employment income
of $160,000. Where the tax on his apportioned Singapore
employment income is below 10% of his total Singapore
employment income, the NOR taxpayer will be subject
to a tax of 10% on his Singapore 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.
In addition, an NOR taxpayer will enjoy the following
benefits:
- Favourable tax treatment of pre-assignment income
Individuals who relocated to Singapore were taxed
on the income they remitted into Singapore before
1st Jan 2004 even when that income was
earned prior to their relocation to Singapore. The
remittance of such pre-assignment income by an NOR
taxpayer would be exempt from tax. (With effect from
YA2005, Singapore taxes individuals on a territorial
basis. All foreign-source income remitted by individuals
is tax-exempt.)
- 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. This is conditional on the
fact that the employer does not claim a tax deduction
for these contributions.
NOR
Calculator
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