Also known as the Enhanced-Tier Fund Tax Exemption Scheme, Section 13U of the Income Tax Act provides tax exemption on Specified Income from Designated Investments, derived by an Approved Person arising from funds managed by a fund manager in Singapore.
Conditions:
- Approval required from MAS
- Has a minimum fund size of S$50 million at the point of application
- The Family Office employs at least three investment professionals (at least 1 must be a non-family member)
- At least S$500,000 local business spending per year
- Uses a Singapore-based fund administrator if the fund is a Singapore-incorporated and tax resident company (holding a CMS licence, or expressly exempted from holding a CMS licence)
- Cannot concurrently enjoy other tax incentives
- No change in investment strategy/objective after being approved by MAS
To Incorporate:
- Fund (Singapore/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