13CA Tax Incentive Scheme

Tax Exemption on Specified Income from Designated Investments, derived by any Prescribed Person arising from funds managed in Singapore (SG) by any fund manager.

Conditions:

  • No approval required from MAS
  • Fund has no presence in SG (other than the fund manager); is non-tax resident of SG and must not be
    100% beneficially owned by SG citizen, resident in SG or Permanent Establishment (PE) in SG
  • Uses a SG-based fund administrator (holds CMS licence, or express exemption from CMS licence)
  • More scrutiny by the Tax Authority (IRAS) annually

To Incorporate:

  • Fund (Offshore) to own assets
  • Family Office (Singapore) to manage the Fund
    ➢ Can apply for Employment Pass 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