Tax exemption
The income is exempt from tax in Singapore if certain conditions are satisfied.
Special Schemes available to Foreigner
Area Representative Scheme.
Not Ordinarily Resident Scheme.
Area Representative Scheme
Conditions
Employed by a non-resident employer;
Based in Singapore for geographical convenience;
Required to travel outside of Singapore in the course of duties; and
Remuneration is paid by the foreign employer and not charged directly or indirectly to the accounts of a permanent establishment in Singapore.
Depending on the total number of days attributable to work in Singapore, the person may be treated as a tax resident or non-resident and the employment income will be prorated based on the duration of physical presence in Singapore.
Not Ordinarily Resident Scheme (NOR)
NOR scheme (Note 1) extends favourable tax treatment to qualifying individuals for a period of five years.
Concessions
Following tax concessions are available during the NOR period as long as the tax payer is a tax resident in the respective YA:
1. Time apportionment of Singapore employment income
Under this scheme. tax payer will not be taxed on the portion of his/her Singapore employment income that corresponds to the number of days he/she has spent outside Singapore for business reasons, as a resident Singapore employee. This scheme is subject to certain conditions.
2. Tax exemption of employer’s contribution to non-mandatory overseas pension fund or social security scheme
Under this scheme, if the tax payer is a resident Singapore employee, the tax exemption is given on contribution made by the employer to any non-mandatory overseas contribution scheme, provided that the employer does not claim a deduction for the contribution. The exemption is subject to a cap and subject to certain conditions.
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