TAX INCENTIVES SCHEME FOR FUNDS

TAX INCENTIVES FOR FUNDS

Tax incentives of funds are listed in Singapore Income Tax Act:

  1. 13CA -Offshore tax exemption
  2. 13R -Onshore fund tax exemption scheme
  3. 13X -Enhanced tier fund tax exemption scheme
  4. 13H -Singapore venture capital fund scheme

Criteria of Tax Incentive Schemes

S13CA S13R S13X S13H
Fund legal form
Companies, trusts and individuals
Company incorporated in Singapore or VCC
Any fund vehicle
Company, limited partnership or VCC
Fund's Residence
Non-tax resident of Singapore with no presence in Singapore; Must not be 100% beneficially owned, directly or indirectly, by Singapore investors.
Must be tax resident of Singapore; Onshore fund must not be 100% beneficially owned by Singapore investors.
No restrictions
No restrictions
Fund Manager
Singapore-based and holding a CMS licence or expressly exempted from holding a CMS licence or as otherwise approved by the Minister.
Singapore-based and holding a CMS licence or expressly exempted from holding a CMS licence or as otherwise approved by the Minister.
Singapore-based and holding a CMS licence or expressly exempted from holding a CMS licence or as otherwise approved by the Minister.
N.A.
Investors
Non-qualifying investors would need to pay a penalty to the Singapore tax authorities. Cannot be 100% beneficially owned by Singapore Investors.
No restrictions on Singapore investors.
No restrictions on Singapore investors.
No restrictions on Singapore investors.
Assets Under Management (AUM)
No restrictions
No restrictions
Minimum of S$50 million
Minimum of SGD10 million fund size
Fund Expenditure
No restrictions
At least S$200,000 business spending in a year.
At least S$200,000 local business spending in a year.
No restrictions for min. annual business spending but requirement to be met at end of tenure
Approval Requirement
No approval needed from MAS.
Approval required from MAS. No change in investment strategy allowed after approval.
Approval required from MAS. No change in investment strategy allowed after approval.
No approval from MAS

TAX BENEFITS FOR FUND MANAGER

10% concessionary tax rate under FSI-FM scheme (Fund managers of S13X/13R funds)

  • Min. 3 investment professionals with projected headcounts growth
  • A min. Assets Under Management (AUM) of S$250M

A lower 5% concessionary tax rate under the Fund Management Incentive (FMI) scheme for fund managers of S13H 

  • a min. AUM of S13H fund managed to be S$40 million, and 
  • hires at least one additional investment professional by end of FMI award.

What can we do?

Ascend can help you in setting up fund management company, fund accounts and fund tax and tax incentives application.