Tax Incentives Schemes & Considerations
Tax Incentives Schemes for Fund Management Companies in Singapore
The Singapore Resident Fund Scheme was introduced to encourage fund managers to base their fund vehicles in Singapore. The main advantage of using a Singapore fund over a tax haven-based fund is that the fund management company and investment team are based in the location of the fund itself (i.e., Singapore).
Eligibility for Fund Management Companies in Singapore
Both the SFO and VCC incorporated in Singapore are eligible to apply for the 13O – Onshore Fund Tax Exemption Scheme (formerly 13R) or the 13U – Enhanced Tier Fund Tax Exemption Scheme (formerly 13X), provided certain conditions are met.
Requirements for Family Offices in Singapore
An SFO or VCC is eligible to apply for 13O tax exemption if it can meet the following requirements
- At least S$200k local business spending per year
- Minimum fund size of S$10 million at the point of application; and within 2 years period, the fund must increase its AUM to S$20 millions
- Must employ at least 2 investment professionals
- Cannot be 100% owned by Singaporean Fund must be incorporated in Singapore
An SFO or VCC is eligible to apply for 13U tax exemption if it can meet the following requirements
- At least S$500k local business spending per year
- Minimum fund size of S$50 million at the point of application
- Must employ at least 2 investment professionals. At least 1 of the investment professionals employed must be a non-family member
- No restriction on ownership of the fund
- Fund must be incorporated in Singapore
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