There is a growing need amongst high-net-worth families for institutional management of their private wealth. Family offices address this need, being investment vehicles for structuring the way families invest and transfer their wealth to future generations.
Currently, there are two tax incentive schemes available for family offices in Singapore, where exemption of income will apply to:
- income of a company incorporated and resident in Singapore that arises from funds managed by a fund manager in Singapore (previously known as the Section 13R scheme); and
- income arising from funds managed by a fund manager in Singapore (previously known as the Section 13X scheme).
To improve the professionalism of family office professionals in Singapore and enhance the positive spillovers to the Singapore economy, MAS has updated the conditions for the above schemes (now known as the S13O Scheme and S13U Scheme respectively). These are set out in the “S13O & S13U Application Process for Family Offices – Guidelines for Advisors” and will come into effect on 18 April 2022.
In this Update, we cover the updated conditions, which funds they apply to, and which applications will be affected.
For more information, click here to read the full Legal Update.
