Singapore continues to strengthen its position as a global hub for family offices, unveiling updated tax incentives under the Financial Sector Incentive Scheme (FSI-FM) and Section 13O/13U of the Income Tax Act. The enhancements aim to attract high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) seeking efficient wealth structuring and investment solutions in a politically stable environment.
In a recent announcement, the Monetary Authority of Singapore (MAS) introduced revisions that tighten compliance requirements while further incentivizing long-term investments and local job creation. Under the updated Section 13O and 13U schemes, family offices managing assets in Singapore must meet higher minimum asset thresholds and commit a portion of their funds to local investments. These measures, MAS stated, are designed to ensure Singapore’s family office ecosystem continues to grow sustainably while contributing to the broader economy.
The changes also include a stronger emphasis on Environmental, Social, and Governance (ESG) considerations. Family offices applying for tax exemptions will now need to demonstrate adherence to ESG investment principles or allocate a portion of their portfolios to green initiatives. This shift aligns with Singapore’s vision of becoming Asia’s leading green finance hub, a move that resonates with the growing global demand for sustainable investing.
Looking ahead, Singapore’s refined tax framework is expected to solidify its standing as a premier destination for global wealth management. By balancing stringent regulatory requirements with attractive incentives, the city-state is positioning itself as a leader in facilitating intergenerational wealth transfer, sustainable growth, and tailored investment strategies for the world’s most discerning investors.
(Editors: admin)