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Schemes and Initiatives
 Published Date: 05 August 2024

Fund Tax Schemes for Family Offices

To offer a conducive operating environment for Singapore-based fund managers, the tax schemes for funds under sections 13O, 13OA 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.
Please refer to: "Circular on Tax Incentive Schemes for Funds" (938.1 KB)

Qualifying Criteria

To be eligible for the section 13O, 13OA or 13U schemes, fund vehicles managed by family offices must meet the criteria listed below throughout the incentive period. 
Criteria S13O/ 13OA S13U
Assets Under Management
  • S$20 million in Designated Investments (DI)
  • S$50 million in Designated Investments
Investment Professionals (IPs)
  • 2 qualifying IPs, of whom at least 1 is not a family member
  • 3 qualifying IPs, of whom at least 1 is not a family member 
     

Investment Professionals Requirements
  • Qualifying IPs must be employed as a portfolio manager, research analyst or trader who earn more than S$3,500 per month and engage more than 50% of the time in the qualifying activity
  • Qualifying IPs must be Singapore tax residents throughout the incentive period
     
Spending Requirement
  • Tiered Local Spending Requirement

Tiered Local Spending Requirement

Criteria AUM in DI < S$250 million
 S$250 million ≤ AUM in DI < S$2 billion AUM in DI ≥ S$2 billion
Minimum Local Spending Requirement of the Fund for the basis period S$200,000 S$500,000 S$1,000,000
Local Spending Requirement may be met by:
  • Local business spending: Minimum S$200,000
 S$500,000 comprising:
  • Local business spending: Minimum S$300,000
  • Eligible donations
  • Grants to blended finance instruments distributed by licensed financial institutions in Singapore (recognised as 2x spending)
 S$1,000,000 comprising:
  • Local business spending: Minimum S$500,000
  • Eligible donations
  • Grants to blended finance instruments distributed by licensed financial institutions in Singapore (recognised as 2x spending)

 
Capital Deployment Requirements (CDR)
  • Investing the lower of 10% of AUM in DI, or S$10 million in DI, which are:
  1. Listed on Approved Exchanges
  2. Distributed (e.g., sold, marketed) by MAS-licensed financial institutions in Singapore, excluding equities listed outside of Approved Exchanges;
  3. Non-listed Singapore-incorporated companies with operating business(es) and with substantive presence in Singapore.
CDR Multiplier Table

2x multiplier 

  • Equities listed on Approved Exchanges
  • Funds investing substantially in Singapore-listed equities
  • Blended finance instruments distributed by licensed financial institutions in Singapore
  • Investments in non-listed Singapore-incorporated companies with operating business(es) and with substantive presence in Singapore
Private Banking Account Requirements
  • The Fund must maintain a private banking account with a MAS-licensed financial institution

Useful Links

Enquiries

 Further queries on Section 13O, 13OA and 13U for SFOs:

  • For questions relating to Sections 13O, 13OA and 13U for Single Family Offices, we recommend first referring to our FAQs in Annex 11 and Annex 12 of the Circular (938.1 KB) as they address many common queries.
  • If your question is not covered, you may reach us at FO_13OU@mas.gov.sg. Please note that queries already addressed in the FAQs may not receive a separate response.