Singapore 2009 Budget Commentary - BDO Raffles

Highlights Of Certain Tax Changes And Developments cont’d
Singapore Budget Commentary 2009
Income Not Apportionable
Old NOR Scheme
Income that will be taxed in full
includes:
* Leave pay (commuted leave);
* Leave passage;
* Director’s fees; and
* All benefits-in-kind (BIK)
whose values are independent
of whether or not you have
travelled out of Singapore for
business reasons, such as
accommodation, car benefit,etc.
New NOR Scheme
Income that will be taxed in full
are:
* Director’s fees; and
* Any amount of income tax
payable in Singapore that is
borne, directly or indirectly, by
your employer.
(B) Tax exemption of employer’s contribution to non-mandatory
overseas pension fund or social security scheme for a resident
NOR Singapore employee
The employer’s contribution is not taxable in the hands of the
resident NOR Singapore employee in the year of contribution.
Qualifying criteria for the concession
(1) The resident NOR Singapore employee is neither a Singapore
citizen nor a permanent resident of Singapore.
(2) His Singapore employment income must meet the minimum
income threshold of S$160,000
(3) His employer must not claim deduction on contribution made to
non-mandatory overseas pension or provident funds and social
security schemes up to the NOR cap.
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