Aug 19, 2024Hello everyone, today we will discuss the latest tax incentive policy for Family Offices in Singapore. Recently, Lianhe Zaobao published an important update stating that, effective October 1, 2024, Family Offices in Singapore applying for tax incentives must submit a background check report conducted by one of the six screening service providers designated by the Monetary Authority of Singapore (MAS).
Starting from October 1
Starting October 1, Family Offices in Singapore seeking tax incentives will be required to go beyond the standard submission of application materials by including a comprehensive background check report. This policy adjustment is designed to ensure that all aspects of Family Office operations, including management, investment strategies, expenditures, and capital allocation, meet the stringent standards set by MAS.
The six screening service providers designated by MAS include: Avvanz, BDO Advisory, DC Frontiers, Ernst & Young Advisory, KPMG Services, and PwC. These providers are tasked with conducting thorough background checks to ensure Family Offices meet the criteria necessary to qualify for tax incentives.
According to MAS, the screening process is expected to take approximately two weeks to complete. Family Offices intending to apply for tax incentives are encouraged to directly engage with these screening service providers to obtain detailed information about the services offered, including cost estimates.
Singapore’s Family Office tax incentive scheme represents a substantial advantage for eligible fund management entities. Under the provisions of Sections 13O and 13U of the Income Tax Act, funds managed by Family Offices can benefit from tax exemptions. However, eligibility for these tax incentives requires Family Offices to satisfy a series of rigorous conditions, including asset management criteria, the employment of qualified investment professionals, expenditure thresholds, capital allocation standards, and the maintenance of private banking accounts.
With the introduction of Singapore’s revised Family Office tax incentive policy, background checks have become an essential component of the application process. For investors aiming to establish a Family Office in Singapore and leverage tax incentives, understanding and adhering to this new policy is crucial. We hope that today’s insights have provided valuable information.
SIG Tax & Accounting, with a professional team boasting over 20 years of experience, specializes in company incorporation, work permit processing, tax planning, Family Office establishment, and auditing services. SIG is committed to delivering comprehensive support for businesses expanding into Singapore and Southeast Asia, ensuring compliance and operational efficiency. Should you have any inquiries or require assistance regarding Family Offices, please follow our official account for expert consultation!
