TAX INCENTIVES SCHEME FOR FUNDS
Tax Incentives For Funds
Tax incentives of funds are listed in Singapore Income Tax Act:
- 13CA -Offshore tax exemption
- 13R -Onshore fund tax exemption scheme
- 13X -Enhanced tier fund tax exemption scheme
- 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.
