Singapore to Announce New Initiatives for Family Offices in July 2023: Tax, Incentives, Grants for Contributions to Charity, Investments into Capital, Grants & Climate Change
24th June 2023 | Hong Kong
Singapore will be announcing new initiatives for family offices in July 2023, introducing improved tax privileges, incentives, grants for contributions to charity, investments into capital, grants & climate change. The announcement was made by Singapore Senior Minister & MAS (Monetary Authority of Singapore) Chairman Tharman Shanmugaratnam at the Association of Banks in Singapore (ABS) 50th anniversary dinner (23/6/23). Earlier in February 2023, Singapore Finance Minister Lawrence Wong had announced a new philanthropy tax incentive scheme. Singapore-based family offices will be receiving 100% tax deduction with a 40% limit of total income for overseas donations made via qualifying Singapore intermediaries under the New Philanthropy Tax Incentive Scheme announced by Singapore Finance Minister Lawrence Wong (2023 Budget Speech, 14/2/23), eligible for qualified family offices under the Monetary Authority of Singapore (MAS) Section 13O or 13U Schemes with details to be announced at the end of June 2023. More info below.
“ Singapore to Announce New Initiatives for Family Offices in July 2023: Tax, Incentives, Grants for Contributions to Charity, Investments into Capital, Grants & Climate Change “
Singapore-Based Family Offices to Receive 100% Tax Deduction with 40% Limit of Total income for Overseas Donations via Qualifying Singapore Intermediaries under New Philanthropy Tax Incentive Scheme, Qualified Family Offices under Singapore MAS Section 13O or 13U Schemes with Details to be Announced in June 2023
15th February 2023 – Singapore-based family offices will be receiving 100% tax deduction with a 40% limit of total income for overseas donations made via qualifying Singapore intermediaries under the New Philanthropy Tax Incentive Scheme announced by Singapore Finance Minister Lawrence Wong (2023 Budget Speech, 14/2/23), eligible for qualified family offices under the Monetary Authority of Singapore (MAS) Section 13O or 13U Schemes with details to be announced at the end of June 2023. In April 2022, the Monetary Authority of Singapore (MAS) had introduced new family office tax exemption criteria for new applications from 18th April 2022, including a S$10 million minimum fund size (rising to S$20 million in 2 years), hiring 2 investment professionals, minimum of 10% of AUM or S$10 million to be invested in local investments (listed debts / securities, Singapore registered funds, private investments into Singapore companies), and minimum of S$200,000 annual business expenditure. These are the new criteria for the Singapore Resident Fund Scheme and Enhanced-Tier Fund Tax Exemption Scheme tax incentives, provided for under sections 13O of the Income Tax Act 1947 (ITA) for fund vehicles managed by single family offices (SFOs). For 13U, the minimum fund size of S$50 million remains, with new criteria including hiring a minimum of 3 investment professionals with at least 1 non-family member, minimum annual business expenditure of S$500,000 and minimum of 10% of AUM or S$10 million to be invested in local investments (listed debts / securities, Singapore registered funds, private investments into Singapore companies). These new criteria comes into effect for all new applications from 18th April 2022. More info below.
Qualified Family Offices under Singapore MAS Section 13O or 13U Schemes with Details to be Announced in June 2023
Singapore Family Office Tax Exemption: S$10 Million Fund Size, 2 Investment Professionals & 10% AUM in Local Investment, Effective from 18th April 2022
15th April 2022 – The Monetary Authority of Singapore (MAS) has introduced new family office tax exemption criteria for new applications from 18th April 2022, including a S$10 million minimum fund size (rising to S$20 million in 2 years), hiring 2 investment professionals, minimum of 10% of AUM or S$10 million to be invested in local investments (listed debts / securities, Singapore registered funds, private investments into Singapore companies), and minimum of S$200,000 annual business expenditure. These are the new criteria for the Singapore Resident Fund Scheme and Enhanced-Tier Fund Tax Exemption Scheme tax incentives, provided for under sections 13O of the Income Tax Act 1947 (ITA) for fund vehicles managed by single family offices (SFOs). For 13U, the minimum fund size of S$50 million remains, with new criteria including hiring a minimum of 3 investment professionals with at least 1 non-family member, minimum annual business expenditure of S$500,000 and minimum of 10% of AUM or S$10 million to be invested in local investments (listed debts / securities, Singapore registered funds, private investments into Singapore companies). These new criteria comes into effect for all new applications from 18th April 2022 (Monday).
New Singapore Family Office Tax Exemption
These new criteria comes into effect for all new applications from 18th April 2022 (Monday).
13O:
For 13O, there is a S$10 million minimum fund size (rising to S$20 million in 2 years), hiring 2 investment professionals, minimum of 10% of AUM or S$10 million to be invested in local investments (listed debts / securities, Singapore registered funds, private investments into Singapore companies), and minimum of S$200,000 annual business expenditure. These are the new criteria for the Singapore Resident Fund Scheme and Enhanced-Tier Fund Tax Exemption Scheme tax incentives, provided for under sections 13O of the Income Tax Act 1947 (ITA) for fund vehicles managed by single family offices (SFOs).
13U:
For 13U, the minimum fund size of S$50 million remains, with new criteria including hiring a minimum of 3 investment professionals with at least 1 non-family member, minimum annual business expenditure of S$500,000 and minimum of 10% of AUM or S$10 million to be invested in local investments (listed debts / securities, Singapore registered funds, private investments into Singapore companies). These are the new criteria for the Singapore Resident Fund Scheme and Enhanced-Tier Fund Tax Exemption Scheme tax incentives, provided for under sections 13U of the Income Tax Act 1947 (ITA) for fund vehicles managed by single family offices (SFOs).
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