Not-Ordinarily-Resident (NOR) scheme — final years — Costs and fees breakdown
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.
The Not-Ordinarily-Resident (NOR) scheme was a Singapore personal tax concession that gave qualifying individuals time-apportionment of employment income and tax exemption on employer contributions to non-mandatory overseas pension funds. The scheme has been discontinued for new applicants, with the last NOR status granted for the Year of Assessment 2020 and final five-year periods running to the Year of Assessment 2024, so 2026 planning focuses on transition rather than new claims.
The Not-Ordinarily-Resident (NOR) scheme and its final years
Introduced to attract mobile talent, the NOR scheme let individuals who were not Singapore tax residents in the three years before qualifying, and who then became residents, enjoy two key benefits over a five-year status window: time-apportionment of Singapore employment income based on days spent working outside Singapore, and exemption of employer contributions to overseas pension or provident funds. The scheme was closed to new entrants after the Year of Assessment 2020; individuals granted status then continue to enjoy benefits until their five-year window closes, with the final windows ending at the Year of Assessment 2024. See the official guidance at www.iras.gov.sg.
Who is still affected
Only individuals who were granted NOR status by the Year of Assessment 2020 and remain within their five-year window are affected, and by 2026 most have transitioned out. The practical relevance now is understanding how income taxed under NOR compares with the ordinary resident basis once status lapses.
Rates, thresholds and what replaced NOR
Under NOR, time-apportionment required at least 90 days of overseas business travel and a minimum Singapore employment income of S$160,000, with an effective floor ensuring tax on at least 10% of income. With the scheme closed, qualifying individuals now fall under standard resident rates of 0% to 24%. There is no direct replacement; planning shifts to reliefs, structuring of overseas duties, and treaty positions.
Costs, fees and timeline
There is no application cost because the scheme is closed. For individuals in their final NOR year, a tax agent preparing the time-apportionment computation typically charges S$800 to S$2,500 given the day-count evidence required. Filing remains free via myTax Portal with the 18 April deadline. Retain travel records for the standard statutory period, as IRAS may review apportionment claims.
Step-by-step process for final-year claims
Confirm the five-year window and the specific Year of Assessment. Assemble a defensible day-count of overseas business travel. Compute the apportioned Singapore-taxable income and any exempt overseas pension contributions. File the return with supporting schedules. From the following year, file on the ordinary resident basis.
Common mistakes and gotchas
The commonest error in 2026 is assuming NOR is still available; it is not. Others under-document overseas travel, weakening apportionment claims. A further gotcha is forgetting that once status lapses, worldwide-basis planning and reliefs must be reconsidered.
Related guides across the Raffles group
- Allowable business expenses under the Income Tax Act — Costs and fees breakdown on Singapore Secretary Services.
- Running an E-Commerce Business in Singapore (2026): Tax and Compliance Guide on Raffles Corporate Services.
- Not-Ordinarily-Resident (NOR) scheme — final years — Step-by-step walkthrough.
Official references
FAQs
Can I still apply for NOR status?
No. The NOR scheme was closed to new applicants after the Year of Assessment 2020. Only those already granted status within an unexpired five-year window retain benefits.
What were the two NOR benefits?
Time-apportionment of Singapore employment income based on overseas workdays, and exemption of employer contributions to non-mandatory overseas pension funds, subject to conditions.
What replaces NOR?
There is no direct replacement. Affected individuals are taxed under ordinary resident rates and should revisit reliefs and treaty positions.
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.