Changes to Tax Incentive Schemes for Family Offices from 18 April 2022

Section 13O

Section 13U

Minimum AUM

Current: No stipulated fund size.

New: S$10m at point of application, to be increased to $20m within a two-year grace period.

No Change: S$50m at point of application.

Investment Professionals (IPs) 
IPs include portfolio managers, research analysts, or traders, who are earning more than S$3,500 per month and substantially engaged in the qualifying activity.

Current: Fund can be managed or advised directly by a fund management company in Singapore.

New: Each family office must employ at least two (2) IPs.

New: Each family office must employ at least three (3) IPs, with at least one (1) being a non-family member.

Business Spending

Current: Fund needs to incur at least S$200,000 in total business spending per financial year.

New: Fund will be subject to a tiered business spending framework. The original spending floor will remain for funds with AUM smaller than S$50 million and S$100 million, minimum total business spending will now be raised to S$500,000.

For funds with AUM above S$100 million, minimum total business spending will be raised to S$1 million.

Current: Fund needs to incur at least S$200,000 in local business spending per financial year.

New: Fund will be subject to a tiered business spending framework. For funds with AUM smaller than S$100 million, minimum local business spending will be raised to S$500,000.

For funds with AUM of S$100 million and above, minimum local business spending will be raised to S$1 million.

Local Investment
Examples include equities listed on Singapore-licensed exchanges, qualifying debt securities, funds distributed by Singapore-licensed fund managers, or private-equity investments into non-listed Singapore-incorporated companies, such as start-ups.

New: Fund managed by a family office must invest at least 10 per cent of its AUM or S$10 million, whichever is lower, in local investments at any one point in time.