Also known as the Resident Fund Tax Exemption Scheme, Section 13O of the Income Tax Act provides tax exemption on Specified Income from Designated Investments, derived by an Approved Company arising from funds managed in Singapore by a fund manager in Singapore.
Conditions:
- Approval required from MAS
- Fund is incorporated in Singapore and a tax resident of Singapore
- Uses a Singapore-based fund administrator (holding a CMS licence, or expressly exempted from holding a CMS licence)
- At least S$200,000 local business spending per year
- No change in investment strategy/objective after being approved by MAS
To Incorporate:
- Fund (Singapore) to own assets
- Family Office (Singapore) to manage the Fund
➢ Employment Passes can be applied for the investment professionals under the Family Office
Examples of Designated Investments:
- Stocks and Shares
- Bonds, Notes, Commercial papers, Treasury bills and Certificates of Deposits
- Exchange traded funds or any other securities
Examples of Specified Income:
- Dividend
- Interest
- Coupons
- Gains from sale of securities