Also known as the Offshore Fund Tax Incentive Scheme, Section 13D of the Income Tax Act provides tax exemption on Specified Income from Designated Investments derived by any Prescribed Person arising from funds managed in Singapore by any fund manager.
Conditions:
- No approval required from MAS
- Fund has no presence in Singapore (other than the fund manager), is not a tax resident of SG and must not be 100% beneficially owned by a Singapore citizen, a Singapore resident or a Permanent Establishment (PE) in Singapore
- Uses a Singapore-based fund administrator (holding a CMS licence, or expressly exempted from holding a CMS licence)
- More scrutiny by the Inland Revenue Authority of Singapore annually
To Incorporate:
- Fund (Offshore) 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