To offer a conducive operating environment for Singapore-based fund managers, the tax incentive schemes for funds under sections 13O and 13U of the Income Tax Act 1947 provide tax exemption to fund vehicles that are managed by Singapore-based fund managers, including family offices, subject to the fulfilment of the schemes’ conditions.
To be approved for the section 13O or 13U schemes, fund vehicles managed by family offices must meet certain criteria in relation to AUM, investment professionals, spending, capital deployment and maintaining private banking accounts.
All new tax incentive applications for fund vehicles managed by family offices must be accompanied by a screening report issued by a Screening Service Provider from 1 October 2024 onwards.
Screening Service Providers can be contacted directly for more details on their services, including on the estimated cost. In general, this screening process is expected to take about 2 weeks to complete. Applicants may wish to consult family office specialist advisors who can incorporate this screening process into your tax incentive applications.
| Criteria | S13O | S13U |
|---|---|---|
| Assets Under Management | Minimum S$20 million in Designated Investments at the point of application and throughout the incentive period | Minimum S$50 million in Designated Investments at the point of application and throughout the incentive period |
| Investment Professionals | Employ minimum 2 professionals, of whom at least 1 is not a family member of the beneficial owners at the point of application and throughout the incentive period | Employ minimum 3 professionals, of whom at least 1 is not a family member of the beneficial owners at the point of application and throughout the incentive period |
| Investment Professionals Requirements for both S13O & S13U |
|
|
| Spending Requirement | Tiered Spending Requirement, with minimum S$200,000 in Local Business Spending | Tiered Spending Requirement, with minimum S$200,000 in Local Business Spending |
| Capital Deployment Requirements# for both S13O & S13U |
|
|
| Private Banking Account Requirements for both S13O & S13U | The Fund must have a private banking account with a MAS-licensed financial institution at the point of application and throughout the incentive period | |
How can Astria help?
It is complex and cumbersome to keep up with the tax incentive application process especially in understanding the rules relating to tiered spending requirement and capital deployment requirements. It is important to get all the application details right at the onset to prevent further delays and queries from MAS during the application process.
At Astria, we have the necessary expertise and work closely with private bankers and experienced lawyers to help with the application, hence speak to us before you embark on this journey .
Speak to us today!
At Astria Consulting, we provide end-to-end business setup solutions, including:
- Company Incorporation, Company Secretary and Nominee Services
- Accounting & Tax
- HR & Payroll
- Family Office & Fund Administration
- Business Advisory
- Training & Others
- Get Started with Astria Consulting Today!
- Email: salesteam@astriaconsulting.com
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- Website: www.astriaconsulting.com
- Let us help you establish your business in Singapore with ease!
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