2022 04 22
From 18 April 2022, Singapore will be enforcing new regulations for Family Offices applying for tax incentives. These measures are designed to increase the ‘professionalism’ of the sector and enhance the ensuing economic benefits to Singapore.
These measures create an operating environment that is conducive to the establishment of family offices. Expected future changes include reviewing the applicable regulations, policies and incentive regimes to ensure that they remain relevant to the development of the sector.
They Key Changes are apply to the Section 13O and Section 13X Schemes, specifically:
‘Section 13O scheme’ (previously known as ‘Section 13R scheme’) which deal with the exemption of income of a company incorporated and resident in Singapore arising from funds managed by a fund manager in Singapore.
‘Section 13U scheme’ (previously known as ‘Section 13X scheme’) which deal with the exemption of income arising from funds managed by a Fund Manager in Singapore
As part of the changes, the MAS introduced a minimum fund size of S$10m ($7.3m) at the time of application, rising to S$20m within two years to be eligible for tax breaks.
The fund must also make local investments with either at least 10% of its assets under management or S$10m, whichever is lower, and the family office must also have a minimum of two investment professionals.
How can Leading Edge help?
We are an experienced Fund Adminstration firm who can assist Family Offices and Fund Managers with their compliance requirements in Singapore.
We can provide a comprehensive solution to VCCs in the following ways:
Incorporate VCCs by assisting with structuring and advising from the perspective of tax, legal, regulatory and operational requirements of the VCC.
Assist with VCC drafting policies and procedures and VCC manager compliance.
Assist with fund manager licence application and providing outsourced compliance support.
For more information, please contact us today at Wayne@YourLeadingEdge.Asia.