|
|
|
|
|
1.
|
What are the criteria I must satisfy to qualify for the NOR Scheme?
|
|
To qualify for the NOR scheme, you must satisfy the following criteria:
- You must be a resident of Singapore for income tax purposes (hereinafter referred to as resident) for that year of assessment (YA) you want to qualify for the NOR Scheme; and
- You must not be a resident of Singapore for income tax purposes (hereinafter referred to as non-resident) for the 3 consecutive years of assessment immediately before that year of assessment.
However, the government has made it easier to qualify for the NOR Scheme through the following transition rules. You would qualify for the NOR scheme if you meet any one of the following transition rules:
i. |
Transitional Rules for Individuals who are Resident for YA2003
If individual was a resident for - |
Individual must be a non-resident for - |
NOR status will be accorded for the period of - |
Tax concessions under the NOR scheme would be applicable for1 - |
On or before YA1998 to YA2003 |
N.A. |
N.A. |
Nil |
YA1999 - YA2003 |
YA1998 |
YA1999 - YA2003 |
YA2003 |
YA2000 - YA2003 |
YA1999 |
YA2000 - YA2004 |
YA2003 - YA2004 |
YA2001 - YA2003 |
YA2000 |
YA2001 - YA2005 |
YA2003 - YA2005 |
YA2002 - YA2003 |
YA2001 |
YA2002 - YA2006 |
YA2003 - YA2006 |
YA2003 |
YA2002 |
YA2003 - YA2007 |
YA2003 - YA2007 |
1 This is provided he is a resident for the YA concerned and satisfies the qualifying criteria, if any, of the tax concessions for that YA. | |
|
ii. |
Transitional Rules for Individuals who are Non-Resident for YA2003
- If you are a non-resident in YA2003, but are a resident in YA2004, you will qualify for the NOR scheme from YA2004 to YA2008
- If you are a non-resident in YA2003 and YA2004 but are a resident in YA2005, you will qualify for the NOR scheme from YA2005 to YA200
|
|
|
|
|
|
|
2.
|
What is the rationale for the NOR Scheme?
|
|
This scheme is targeted at attracting global talent who have spent a significant amount of time abroad in the past few years and encourage them to relocate to Singapore.
|
|
|
|
|
|
3.
|
What does time apportionment of Singapore employment income mean?
|
|
If you are exercising employment in Singapore, your total employment income in Singapore including the days you are outside of Singapore for business reasons would be liable to tax in Singapore. With time apportionment, you will be taxed only on the portion of your Singapore employment income, which corresponds to the number of days you are in Singapore. Therefore, your Singapore employment income, which corresponds to the number of days you are outside of Singapore for business reasons, will not be subject to Singapore income tax. However, in the event that the tax on the Singapore employment income corresponding to the number of days in Singapore is less than 10% of the Singapore employment income before time apportionment, you will be subject to a tax of 10% of your total Singapore employment income (hereinafter referred to as "10% floor rate").
There have been changes to the NOR concession with effect from YA 2009. The information in this section relates to the revised NOR scheme. Refer to IRAS' website for information on the old scheme.
|
|
|
|
|
|
4.
|
How do I apply for the NOR status?
|
|
You must apply to the Comptroller of Income Tax in the specified application form by 15 Apr of the year of assessment in which you wish to qualify for the NOR Scheme.
The application form is available at http://www.iras.gov.sg/.
|
|
|
|
|
|
5.
|
The rate computed on my apportioned Singapore employment income is less than 10%. How will I be taxed?
|
|
If the rate based on your apportioned Singapore-sourced employment income is less than 10% ((i.e. tax/total Singapore-sourced employment income before time apportionment), you will be subjected to the 10% floor rate. IRAS will compute your equivalent employment income (which corresponds to 10% of your total Singapore-sourced employment income before time apportionment). This amount will then be aggregated with your other income sources (for example rental and interest) to arrive at your net tax payable.
|