MAS tightens criteria for family offices to qualify for tax incentives

THE bar for family offices to qualify for tax incentives will be raised from Monday (Apr 18), with new requirements on fund sizes, AUM (assets under management) growth and business spending, among other stricter criteria.

From that day, applications for funds managed and/or advised directly by a family office must have a minimum fund size of S$10 million at the point of application. Applicants must commit to increasing AUM to S$20 million within a 2-year period, under the new Section 13O of the Income Tax Act, which pertains to funds for which fund vehicles are incorporated and based in Singapore.

Previously, the conditions for tax incentives under this section did not stipulate a minimum fund size.