The Monetary Authority of Singapore (MAS) has introduced a mandatory requirement for screening reports to accompany all new applications for key tax incentives made by family office-managed fund vehicles, effective 1 October 2024.
Key Details:
- New Mandatory Requirement: From 1 October 2024, all new applications for tax incentives under Sections 13O and 13U of the Income Tax Act 1947 must include a screening report.
- Approved Providers: These reports must be issued by service providers pre-selected by MAS. The regulator has currently listed six approved screening service providers on its official website.
- Avvanz Pte. Ltd. (cdd.cs@avvanz.com)
- BDO Advisory Pte. Ltd. (info-fs@bdo.com.sg)
- DC Frontiers Pte. Ltd. (duediligence@handshakes.ai)
- Ernst & Young Advisory Pte. Ltd. (screening@sg.ey.com)
- KPMG Services Pte. Ltd. (sg-fmkpmgscreensvcs@kpmg.com.sg)
- PricewaterhouseCoopers Professional Services Pte. Ltd. (foss@awms.sg.pwc.com)
- Applicability: The requirement applies specifically to fund vehicles managed by Singapore-based fund managers operating as family offices seeking these tax exemptions.
- Purpose: The screening reports will support the assessment of applications against the established criteria for the 13O and 13U schemes.
- Existing Scheme Criteria: Eligibility for the Sections 13O and 13U tax incentives continues to depend on fund vehicles meeting stringent requirements related to:
- Assets Under Management (AUM)
- Employment of investment professionals
- Local business spending
- Capital deployment strategy
- Maintenance of private banking accounts in Singapore
The Sections 13O and 13U regimes are critical components of Singapore’s fund management landscape, offering tax exemption to qualifying funds managed from Singapore. This new requirement formalizes an additional due diligence step in the application process for family office structures specifically.
Family offices planning to submit new applications for the 13O or 13U tax incentives on or after 1 October 2024 must factor in engaging one of the MAS-listed screening providers to obtain the requisite report as part of their application preparation.
Source: Monetary Authority of Singapore, 5 August 2024.