Financial Sector Tax Incentive Schemes
Financial Sector Incentive SchemeThe Financial Sector Incentive (FSI) Scheme applies to licensed financial institutions, from large universal banks, fund managers to capital market players.
Recipient ProfileA typical recipient of the FSI-Standard Tier tax incentive is a licensed bank. Its key activities comprise a good mix of business (e.g. capital market, treasury, corporate lending services) and corporate functions (e.g. general management, risk management, training, marketing and other headquarter services).
The bank looks to serve its home market clients which may have business or financing needs as they expand in Asia/ASEAN, as well clients in the region who are keen to access their home market.
The bank typically employs 100 staff, of which 70% are FSI qualifying professionals performing front and middle office functions.
The professional staff team includes senior management with regional oversight of key functions or business lines. Typical positions include CEO for Asia/ASEAN, Head of Compliance for Asia/ASEAN and Head of Corporate/Commercial Banking.
The bank has an average total business spending of S$250 million annually.
The bank also uses Singapore as a hub for pursuing the group’ strategic interests, including establishing Centres of Excellence in Singapore for training and development, business planning, mid-office functions such as compliance, risk management, technology and hosting client events.