NOR Scheme — Time-Apportioned Income
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The Not Ordinarily Resident (NOR) scheme was a Singapore income tax concession available to high-earning expatriates with significant business travel. The scheme allowed qualifying individuals to pay Singapore income tax only on the portion of their salary attributable to days spent working in Singapore, rather than their full package. The NOR scheme was available for 5 consecutive years from the year an individual first qualified. New NOR status was closed to new applicants from Year of Assessment 2020 (i.e., applicants who qualified from 1 January 2020 onwards were no longer eligible). Existing NOR status holders could continue benefiting until their 5-year period expired — the last cohort under the scheme would have had their status expire around 2024-2025. To qualify for NOR, the taxpayer had to: not be a Singapore tax resident in any of the 3 years before the qualifying year, earn at least S$160,000 in employment income in the qualifying year, and spend at least 90 days outside Singapore for business purposes in the qualifying year. Under NOR, the time-apportionment benefit reduced the Singapore-taxable portion of employment income based on the proportion of days spent in Singapore relative to total working days globally. A local component of employment income (any amount specifically allocated as Singapore-based pay, such as local allowances) was always fully taxable regardless of travel days. The NOR scheme reflected Singapore's strategy to attract global executives to use Singapore as a regional hub — executives with significant Asia-Pacific travel could structure their compensation to significantly reduce Singapore tax during the NOR period.
NOR Taxable Income = Local Component + (Total Package - Local Component) × (Singapore Days / Total Working Days); Singapore Days Ratio = Days physically in Singapore / Total Calendar Days; NOR Tax Saving = (1 - SG Days Ratio) × Total Non-Local Package × Marginal Tax Rate
- 1Determine NOR eligibility: not resident in Singapore in the prior 3 years, income ≥S$160,000, and 90+ days outside Singapore for business in the qualifying year.
- 2Identify the local component of employment income — amounts specifically designated as Singapore-based remuneration are taxable in full.
- 3Track days spent in Singapore and outside Singapore throughout the year, with documentation (passport stamps, travel itineraries, employer records).
- 4Calculate the non-local component: total employment income minus the local component.
- 5Apply the time-apportionment: multiply the non-local component by the ratio of Singapore days to total days.
- 6Add the local component and apportioned amount together for the total NOR taxable income.
- 7Lodge the income tax return in Singapore including the NOR concession, supported by travel records.
Without NOR, full S$400,000 would be taxable; NOR reduces taxable income significantly
Non-local = S$350,000. SG ratio = 140/260 = 53.8%. Apportioned = S$350K × 53.8% = S$188,462. Total NOR taxable = S$50K + S$188K = S$238K.
Executives with very high travel (80 of 260 days in Singapore) see the most dramatic NOR benefit
Non-local = S$520,000. SG ratio = 80/260 = 30.8%. Apportioned = S$520K × 30.8% = S$159,992. Total NOR taxable = S$80K + S$160K = S$240K.
50% travel executives save roughly half their total income tax under NOR
Standard: tax on S$500K ≈ $93,400. NOR taxable ~$250K: tax ≈ $49,200. Difference = $44,200 annual saving.
NOR's 5-year window explains why it was highly valuable to qualifying executives
S$40,000 × 5 years = S$200,000 total tax savings. At investment returns of 5%, the present value was even higher.
A multinational company HR team calculating historical NOR tax savings for executive compensation benchmarking., representing an important application area for the Singapore Not Ordinarily Resident in professional and analytical contexts where accurate singapore not ordinarily resident calculations directly support informed decision-making, strategic planning, and performance optimization
An expatriate tax specialist preparing a final-year NOR return for an executive whose 5-year NOR period is ending., representing an important application area for the Singapore Not Ordinarily Resident in professional and analytical contexts where accurate singapore not ordinarily resident calculations directly support informed decision-making, strategic planning, and performance optimization
A tax lawyer reviewing an IRAS audit query on a client's NOR day count and local component designation., representing an important application area for the Singapore Not Ordinarily Resident in professional and analytical contexts where accurate singapore not ordinarily resident calculations directly support informed decision-making, strategic planning, and performance optimization
Academic researchers and university faculty use the Singapore Not Ordinarily Resident for empirical studies, thesis research, and peer-reviewed publications requiring rigorous quantitative singapore not ordinarily resident analysis across controlled experimental conditions and comparative studies
An executive with remaining NOR years maximising the benefit through careful tracking of Singapore versus overseas working days., representing an important application area for the Singapore Not Ordinarily Resident in professional and analytical contexts where accurate singapore not ordinarily resident calculations directly support informed decision-making, strategic planning, and performance optimization
NOR and Home Country Taxation
{'title': 'NOR and Home Country Taxation', 'body': "Even with NOR, the executive's home country tax treaty with Singapore and home country tax obligations must be reviewed. For example, a UK tax resident on a Singapore NOR assignment might still owe UK tax on their worldwide income, with Singapore tax credited against the UK liability."}
Short-Term Business Visitors
In the Singapore Not Ordinarily Resident, this scenario requires additional caution when interpreting singapore not ordinarily resident results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when singapore not ordinarily resident calculations fall into non-standard territory.
Company Perspective on NOR
In the Singapore Not Ordinarily Resident, this scenario requires additional caution when interpreting singapore not ordinarily resident results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when singapore not ordinarily resident calculations fall into non-standard territory.
NOR Audit Risk
In the Singapore Not Ordinarily Resident, this scenario requires additional caution when interpreting singapore not ordinarily resident results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when singapore not ordinarily resident calculations fall into non-standard territory.
| NOR Eligibility Criteria | Requirement |
|---|---|
| Prior residency | Not a Singapore resident in any of 3 preceding YAs |
| Minimum income | At least S$160,000 in employment income |
| Business travel | At least 90 days outside Singapore for business |
| Scheme duration | 5 consecutive Years of Assessment |
| Closed to new applicants | From YA 2020 onwards — no new NOR grants |
Is the NOR scheme still available?
No. The NOR scheme was closed to new applicants from Year of Assessment 2020. Individuals whose first qualifying year was 2019 would have received NOR status for 5 years until approximately 2023-24. No new NOR applications are accepted. The scheme was discontinued as part of Singapore's tax review. This is particularly important in the context of singapore not ordinarily resident calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise singapore not ordinarily resident computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
What replaced the NOR scheme?
There is no direct replacement for the NOR scheme. Expatriate executives now pay Singapore income tax on their full Singapore-sourced employment income without time-apportionment. Singapore's relatively low top marginal rate (24% for income above S$1 million from 2024) is still competitive compared to many Western countries. This is particularly important in the context of singapore not ordinarily resident calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise singapore not ordinarily resident computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
What is the local component?
The local component is the portion of employment income specifically designated and paid as Singapore-based remuneration — for example, a Singapore cost-of-living allowance, local housing allowance, or locally-sourced directorship fees. This component is always fully taxable in Singapore regardless of NOR status. This is particularly important in the context of singapore not ordinarily resident calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise singapore not ordinarily resident computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
How was the Singapore day count tracked?
IRAS required taxpayers to maintain records of all days spent in and outside Singapore, including purpose (business travel or personal leave). Supporting documentation included passport entry/exit records, flight boarding passes, employer travel itineraries, and business purpose declarations. IRAS could request these on audit. This is particularly important in the context of singapore not ordinarily resident calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise singapore not ordinarily resident computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
Did NOR apply to Singapore income only?
NOR only reduced the taxable portion of employment income earned from the same employer globally. Investment income, director fees from Singapore companies, and other non-employment income were taxed in full regardless of NOR status. This is particularly important in the context of singapore not ordinarily resident calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise singapore not ordinarily resident computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
Who still benefits from understanding NOR?
Existing NOR holders who were in their 5-year window during 2019-2024 need to correctly apply NOR calculations for their remaining qualifying years. Tax professionals advising expatriate executives also need NOR knowledge for historical return reviews and audits. Scholars of Singapore tax policy study NOR as a model for talent attraction schemes.
Can overseas employees working remotely for Singapore companies get similar relief?
Remote workers based outside Singapore working for Singapore employers are generally not taxable in Singapore on their employment income if they do not physically work in Singapore. They would be taxable in their country of physical work. This differs from NOR, which applied to executives spending significant but not all time in Singapore.
Was NOR available to Singapore Citizens or PRs?
No. NOR was only available to individuals who were not Singapore tax residents in the three years prior to qualifying. Singapore Citizens and PRs who have been continuously resident are not eligible for NOR, as they are by definition ordinarily resident in Singapore. This is particularly important in the context of singapore not ordinarily resident calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise singapore not ordinarily resident computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
プロのヒント
For historical NOR tax return reviews or IRAS audits relating to NOR years, engage a Singapore expatriate tax specialist rather than a general accounting firm. NOR calculations involve complex interaction between employment contract structures, business travel records, and Singapore tax treaty provisions.
ご存知でしたか？
The NOR scheme was part of Singapore's broader Economic Development Board strategy to attract regional headquarters of multinational companies. By reducing the tax burden on highly mobile executives using Singapore as a hub, it made Singapore more attractive than regional competitors like Hong Kong for MNC regional offices during its active years.