As one of the countries with the lowest corporate tax rates in the world, in order to encourage investment and trade, Singapore has formulated various tax incentives.
The various government agencies in Singapore coordinate with each other and work efficiently, providing comprehensive and convenient government services for entrepreneurs who invest and start businesses.
Finally, and most importantly, Singapore has an investment immigration program that perfectly matches family offices, allowing investors to achieve international residency for themselves and their families by setting up a family office.
Singapore Family Office Classification
1.Single family office
A single family manages its own assets, and the assets are put into the family fund, and the fund investment is selected by the client or a reference financial planner;
A legal entity established by wealthy families to conduct wealth management, wealth planning, and other services for members of the family.
Singapore SFO can exempt RFMC/LFMC fund license.
2. Multi family office
Multi-family offices are FOs that serve multiple families, and there are three main sources:
■ The first category is transformed by SFO accepting other family clients;
■ The second category is the establishment of private banks to better serve large customers;
■ The third category is founded by professionals.Singapore MFO needs RFMC/LFMC fund license, similar to EAM; making EAM can become a bridge between other families and private banks.
In the Singapore Budget in February 2019, the Minister of Finance of Singapore announced that there will be more favorable tax exemption schemes for family offices:
Expand the coverage of the tax exemption and continue to extend the preferential scheme under sections 13CA, 13O and 13U of the current tax exemption policy until December 31, 2024.
The Monetary Authority of Singapore (MAS) announced that from 18 April 2022, the application requirements for Singapore 13O (formerly 13R) family offices have been updated as follows:
At the time of application, the AUM must reach at least S$10 million; after two years, the AUM should reach S$20 million.
At least 10% of the total amount or SGD 10 million (whichever is lower) shall be invested in the local investment market in Singapore.
Note: If at the time of application it is unable to invest at least 10% of the home-based AUM or S$10 million, whichever is lower, in local investments, the fund will receive a one-year grace period.