Not-Ordinarily-Resident (NOR) scheme — final years — Complete 2026 guide
The not-ordinarily-resident (NOR) scheme gave qualifying Singapore employees favourable tax treatment on employment income, but it has been closed to new entrants and is now in its final years. This 2026 guide explains how the not-ordinarily-resident scheme worked, who can still benefit, and what replaces it for inbound talent.
Little Big Employment Agency (EA Licence 19C9790) works with a panel of corporate and employment law firms; this article is general information, not legal advice.
What the not-ordinarily-resident scheme was
The NOR scheme was a concession for tax-resident individuals who were not ordinarily resident in Singapore. It offered two main benefits over a five-year qualifying period: time apportionment of employment income for individuals who spent significant time working outside Singapore, and a tax exemption on employer contributions to non-mandatory overseas pension or provident funds, subject to conditions. It was designed to attract mobile senior talent to base themselves in Singapore.
Why the scheme is in its final years
The NOR scheme was discontinued for new applicants. The last NOR status was granted for the Year of Assessment 2020, covering the five-year period through to the Year of Assessment 2024. Individuals who received NOR status before it closed could continue to enjoy the benefits for the remainder of their qualifying period, which is why a small population of taxpayers still references the scheme in 2026 as their final qualifying years conclude.
Who can still benefit
Only individuals who were granted NOR status during the scheme’s life can rely on it, and only for years still within their five-year window. No new NOR status is available. For individuals whose window has closed, ordinary resident tax treatment applies. Establishing tax residency is the starting point for any analysis; see our guide to the 183-day tax residency rule.
Cost, rates and the numbers that matter
- Resident tax rates: progressive from 0% up to 24% on chargeable income for the highest band.
- NOR qualifying period: five consecutive Years of Assessment from the year status was granted.
- Minimum income condition (time apportionment): the concession applied where Singapore employment income met the prescribed minimum and the individual spent at least 90 days outside Singapore for business.
- Effective floor: time apportionment could not reduce tax below an effective rate of 10% of total Singapore employment income.
What replaces the NOR scheme
With NOR closed, inbound senior employees rely on the ordinary resident regime, foreign tax credits where double taxation arises, and careful structuring of remuneration. Where overseas elements of pay or pensions are involved, the interaction with Singapore withholding obligations matters; see our guide to withholding tax in Singapore. High-net-worth individuals relocating to Singapore often also consider broader planning, including our overview of Singapore trust structures for high-net-worth families.
Step-by-step: handling a final NOR year
- Confirm the Year of Assessment in which NOR status was granted and whether the five-year window remains open.
- Establish tax residency for the year in question.
- Test the time apportionment conditions, including days spent working outside Singapore.
- Apply the effective 10% floor when computing the apportioned liability.
- Claim the concession in the income tax return with supporting travel and income records.
- Plan for ordinary resident treatment once the window closes.
Statutory basis
Singapore personal income tax is governed by the Income Tax Act 1947. Residence and the basis of assessment are addressed in section 2 of the Income Tax Act 1947 (definitions, including resident individual) and the charging provisions in section 10 of the Income Tax Act 1947. NOR was an administrative concession operated by IRAS within that statutory framework; with the concession withdrawn, the ordinary provisions of the Act govern.
Authoritative sources
See IRAS guidance on individual income tax at iras.gov.sg, monetary and financial sector information from the Monetary Authority of Singapore, and CPF information at cpf.gov.sg.
Frequently asked questions
Can I still apply for NOR status in 2026?
No. The scheme is closed to new applicants. Only individuals granted status before closure can rely on it, and only within their five-year window.
When did the NOR scheme end?
The final NOR status was granted for the Year of Assessment 2020, with benefits running through the Year of Assessment 2024 for that cohort.
What is the effective tax floor under NOR time apportionment?
Time apportionment could not reduce tax below an effective 10% of total Singapore employment income.
What should inbound executives use now?
The ordinary resident regime with foreign tax credits and careful remuneration planning, since NOR is no longer available.
Related guides
For wider context, see our withholding tax in Singapore, our Singapore trust structures for high-net-worth families, and the 183-day tax residency rule.
Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Little Big Employment Agency (EA Licence 19C9790) works with a panel of corporate and employment law firms; this article is general information, not legal advice.