Singapore: Changes to family office tax incentive regimes

Singapore has implemented changes to two tax incentive regimes commonly used to establish family office structures

Changes to two tax incentive regimes commonly used to establish family office structures

The Monetary Authority of Singapore (MAS) has implemented changes—effective 18 April 2022—to two tax incentive regimes commonly used to establish family office structures in Singapore.

The Section 130 and Section 13U tax incentive regimes have been popular among those looking to establish family office structures in Singapore. Under those regimes, a single family office (SFO) providing services to the wealth structure of only one family can be exempt from regulation.

The MAS has implemented a series of changes to SFO managed fund vehicles applying for approval under the Section 13O and Section 13U regimes. The changes affect the following categories of requirements:

  • Minimum fund size
  • Number of investment professionals
  • Minimum level of annual business spending
  • Local investment requirement

These changes are not applicable to fund vehicles managed by licensed managers. Private wealth structures managed by multi-family offices or external asset managers should therefore remain unaffected by the updated guidelines.

Read a May 2022 report [PDF 296 KB] prepared by the KPMG member firm in Singapore 

 

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