Single Family Office
With the implementation of CRS and the increase in global tax transparency, traditional tax havens and wealth management centers no longer meet the needs of high-net-worth families, leading to a shift towards investment and family asset allocation for business purposes.
Setting up a simplified family office in Singapore not only provides daily administrative and investment management services but also cultivates the next generation of family wealth managers with a global perspective, and requires relatively low investment amounts.
Proper Regulation
Family offices that only manage family assets do not need to apply for an asset management license from the Monetary Authority of Singapore (MAS).
CRS Protection
By establishing a family office and obtaining an Employment Pass (EP), supplemented by other documents, you become a Singapore tax resident. As a result, your wealth, income, and bank account information in Singapore will not be exchanged under CRS.
Proper Regulation
Family offices that only manage family assets do not need to apply for an asset management license from the Monetary Authority of Singapore (MAS).
CRS Protection
By establishing a family office and obtaining an Employment Pass (EP), supplemented by other documents, you become a Singapore tax resident. As a result, your wealth, income, and bank account information in Singapore will not be exchanged under CRS.
Tax Incentive Programs
- There are over 100 Double Taxation Agreements (DTA) countries, including China, Indonesia, and India. This means that certain types of income will be taxed at a reduced rate or even be exempt from tax.
- Family offices are exempt from tax on funds managed both offshore and onshore.
- Once approved, the funds do not need to pay taxes on income that qualifies for the tax exemption.
- According to Singapore's 2019 Budget, the above-mentioned tax incentive provisions will be extended until December 31, 2024. Any funds approved for tax incentives before this date and continuously meeting compliance and tax requirements will permanently enjoy the corresponding tax benefits.
To attract more wealthy individuals to set up family offices in the Lion City, the Singapore government provides tax exemptions for funds managed offshore or onshore by family offices.
Under this incentive policy, almost all investment income managed by family office funds is exempt from income tax.
| 13D Scheme (Offshore Fund) | 13O Scheme (Onshore Fund) | 13U Scheme (Enhanced-Tier Fund) | |
| Must be a newly established fund entity | Yes | Yes | No |
| Pre-approval by the Monetary Authority of Singapore (MAS) | NO Required | Required. Investment strategy cannot be changed after approval. | Required. Investment strategy cannot be changed after approval and can be consolidated using a master-feeder fund, master fund-SPV, or master-feeder fund-SPV structure. |
| Form of fund entity | Company and Individual | Company incorporated in Singapore | No restrictions on the fund entity structure |
| Applicable exemptions | Exemption from tax on "specified income" derived from "designated investments," such as trading income from stocks and shares. Income not exempt from tax includes income from real estate located in Singapore, physical gold investments, and art pieces. | ||
| Fund tax residency | Non-tax residents of Singapore. | Must be a tax resident of Singapore. | No restrictions on tax residency. |
| Licensing requirements for SFO (fund manager) | Must be a Singapore company holding a Capital Markets Services (CMS) license or exempted from holding a CMS license. | ||
| Local SFO employee requirements | No restrictions. | Employ at least 2 investment professionals, with at least 1 not being a family member of the beneficiary. | Employ at least 3 investment professionals, with at least 1 not being a family member of the beneficiary at the time of application and throughout the tax incentive period. |
| Local investment | No restrictions. | At least 10% of Assets Under Management (AUM) or SGD 10 million, whichever is lower. | |
| Fund manager | Not required in Singapore. | Must in Singapore. | Only required if the fund is a Singapore-registered company and a Singapore tax resident; in that case, the fund manager must be in Singapore. |
| Minimum asset under management (AUM) | No minimum amount required. | Designated investments of at least SGD 20 million at the time of application and throughout the tax incentive period. | During the application and throughout the tax incentive period, designated investments must amount to at least SGD 50 million. |
| Investor requirements | nvestors who do not meet the criteria (such as investing more than a certain percentage in the fund by non-Singapore individuals) will be penalized. | No restrictions. | |
| Expense requirements | No minimum business expenditure requirement. | Tiered expenditure requirement: minimum local commercial expenditure in Singapore is SGD 200,000. | Tiered expenditure requirement: minimum local commercial expenditure in Singapore is SGD 200,000. |
| Reporting requirements | Annual reports must be provided to investors; investors not meeting tax exemption criteria must file taxes with the Inland Revenue Authority of Singapore (IRAS). | Not required. | |
| Income tax reporting requirements | Annual reports must be provided to investors. If penalized, reports must be submitted to IRAS, including tax and company filings. | Annual filings with the Monetary Authority of Singapore (MAS) are required. Annual reports must be provided to investors. If penalized, reports must be submitted to IRAS, including tax and company filings. | Annual filings with MAS are required. If the fund holding entity is a Singaporean company, company filings must be submitted. |
Architecture Design
We will establish a tailored and effective architecture based on risk management, compliance (including licensing requirements), and tax efficiency, customized to client needs. Investments starting from SGD 20 million qualify for an Employment Pass (EP), with options to apply for Dependant's Pass (DP) and Long-Term Visit Pass (LTVP) for family members, leading to immigration.
Apply for Tax Exemption
Own a fund company in Singapore
● Investment Entity
Tax Exemption Schemes:
- Enhanced Tier Fund Tax Exemption Scheme (13D)
- Onshore Fund Tax Exemption Scheme (13O)
- Enhanced Tier Fund Tax Exemption Scheme (13U)
Application for Employment Pass
Own a Fund Company in Singapore
(Family Office)
- Responsible for managing the fund company;
- Need to apply for license exemption;
- EP application: pass the “Compass Scoring system" or obtain an exemption.