Family offices in Singapore

Due to the high demand of wealth management and diversification of investments by high-net-worth families, the number of family offices has grown rapidly in Singapore over the past few years.

Singapore is becoming an attractive location in Asia to set up family offices due to the following reasons:

Attractive tax-regime for personal income and for funds in Singapore and offshore managed by Singapore fund managers through the various tax incentives offered by the Singapore Government to encourage the growth of Singapore as a financial hub;
Strong legal framework, financial infrastructure and availability of diverse financial products and investments offered to private clients looking to invest in Singapore;
Absence of estate duty or inheritance tax;
Strong network of fund managers, legal and tax advisors, investment professionals, etc;
Economic and political stability; and
Wide network of Double Tax Agreements.

Various tax incentives are available to family offices investing through Singapore funds into Singapore and offshore investments, providing exemption from tax gains from trading of certain designated investments (onshore fund and enhanced tier fund tax incentives).

Income of qualifying fund managers will also be taxed at concessionary tax rate in Singapore. Investors looking for permanent residency in Singapore can apply to the Global Investor Program if they meet certain requirements. Very often high net worth individuals looking for countries to diversify their investments consider Singapore as an ideal place to invest and relocate.

We can assist foreign investors looking to set up family offices here with the following services:

Application of the applicable tax incentives for funds and fund managers;
Structuring of the fund and feeder vehicles maximizing tax efficiency;
Incorporation of fund and fund management companies;
Coordinate with different stakeholders (i.e., bankers, lawyers, government agencies, external fund managers, etc.) to secure the application of the tax incentives, etc.;
Application of employment passes for foreign professional investors;
Annual compliance services (i.e., tax return filing, annual declaration submission, accounting services, corporate secretarial services, GST filing, Audit services and FATCA & CRS filing).

If you have any questions, please don’t hesitate to get in touch with our Tax Experts Elaine Chow or Gene Kwee.

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Updated conditions for tax exemption of funds

The Monetary Authority of Singapore (“MAS”) has announced the updated conditions for family offices to receive tax incentives in Singapore, effective 18 April 2022.