Singapore: Tax treatment of employer contributions | KPMG Global
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Singapore: Tax treatment of employer contributions to foreign pension funds

Singapore: Tax treatment of employer contributions

The Inland Revenue Authority of Singapore has changed the tax treatment of employer contributions to foreign pension or provident fund plans under the “not ordinarily resident” (NOR) regime.


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In general, employer contributions to a retirement fund are deemed as income to the employee. Under the NOR taxpayer regime, an eligible NOR employee may apply for an exemption from tax for employer contributions to a non-mandatory foreign or overseas fund when the contributions are not made to compulsory plans regulated under the employee’s home country government, at a time when the employee is working outside the home country.

The change in tax treatment concerns situations when the employer’s contribution is not charged (or recharged) to any Singapore entity. This change applies retroactively from 1 January 2014. Thus, when the expense for the employer’s contribution is not borne by the Singapore entity, the employee would not be eligible for the NOR tax concession (exemption).


Read a May 2017 report [PDF 266 KB] prepared by the KPMG member firm in Singapore

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