What are the tax incentives schemes available for SFOs in Singapore?
Family Offices may be eligible for various tax exemption schemes available to funds managed by fund managers in Singapore, as prescribed under the Income Tax Act 1947.
Tax exemption schemes:
- Onshore fund tax exemption scheme section 13O (formerly 13R)
- Enhanced tier fund tax exemption scheme section 13U (formerly 13X)
- Offshore fund tax exemption scheme section 13D (formerly 13CA) - where the SFO fund is an offshore entity
The 13O, 13U and 13D schemes exempt your fund from tax on “specified income from designated investments”, including capital gains tax. Any fund that qualifies for the above exemptions (until 31 December 2024) may enjoy tax exemption for the life of the fund subject to the fund meeting the criteria.
As of 18 April 2022, amendments have been made to the 13U and 13O tax incentives by MAS to increase the quality and professionalism of the Family Office sector. Applications submitted/approved before this date will not be affected, while applications submitted after 18 April 2022 will be subject to the new criteria. For more comprehensive and up to date tax advice, please contact a professional.