Enhanced Tax Incentives for Single Family Offices in Singapore

Created On: November 13, 2023
Newsletter, Singapore

Modified On: January 12, 2026

Share

In a move to encourage higher investment in social and environmental causes, the Monetary Authority of Singapore (MAS) has updated its guidelines for SFOs (Single Family Offices) looking for tax incentives under the Section 13O and Section 13U schemes. These changes are likely to benefit your single family office in Singapore, fetching you better tax incentives and shift the focus to develop sustainable investment practices.

Have a look at the key policy updates and their respective implications.

Minimum Assets Under Management (AUM)

Currently, the minimum AUM for the 13O Scheme stands at S$20 million while applying. This has to be maintained throughout the incentive period, eliminating any grace period
At S$50 million, the minimum AUM for the 13U Scheme remains unchanged while applying as well as the period throughout incentives
The updated norms highlight the need for SFOs to have a financial buffer in their plans. This ensures that they can fulfill the criteria even when markets remain volatile

Investment Professionals (IPs)

The 13O Scheme makes it mandatory for an SFO to use at least two IPs, where there should be at least one non-family member IP
IPs in Singapore should hold relevant qualifications for fund management and maintain tax residency
According to the 13U Scheme requires at least three IPs, including one non-family member IP

These requirements related to staffing enhance the professionalism of SFOs. Besides, they help in creating job opportunities in the local wealth management industry.

Minimum Spending Requirement

According to the 13O Scheme, local business expenses should be at least S$200,000 per financial year. This is subject to the Tiered Spending Requirement Framework
According to the 13U Scheme, at least S$500,000 has to be spent on local businesses in a financial year, also subject to the same framework

The tiered framework ensures that SFOs contribute to the local economy, thereby enriching the business landscape in Singapore.

Tiered Spending Requirement Framework

This framework encourages SFOs to progressively invest more in local businesses, aligning their strategies with Singapore’s economic development goals. Have a look at the Tiered Spending Requirement Framework.

Capital Deployment Requirement (CDR)

Under the updated guidelines, funds must allocate at least 10% of their AUM or S$10 million for particular local investments
The list of eligible investments has been expanded to include climate-related projects and blended finance structures that involve substantial participation from Singapore-licensed/registered financial institutions
Multipliers have been introduced to incentivize certain investments, helping SFOs meet the Capital Deployment Requirement and facilitating their contributions to the local economy.

These newly introduced guidelines aim to make the 13O and 13U Schemes more flexible for Single Family Offices. This will foster an environment conducive to sustainable investments and economic growth. Besides, they promote a higher degree of professionalism within the SFO sector. In the process, Singapore further solidifies its position as a dynamic hub for family officers, emerging as a leader in responsible wealth management.

With Singapore’s SFOs growing popularity, you may partner with one of the trusted companies like the IMC Group to make the most of the opportunities. Professionals can help you maximize your tax incentives as you grow your single family office in the country.

Expand your business faster with our Global Capability Center

Global Entity Management is more than compliance

Let’s build the full structure right

Cross-Border Succession Planning for UAE Family Businesses

Don’t rely on assumptions

Conduct Due Diligence across HR, financial, and operational areas.

Your Vision, Our Mission.
Let's Discuss.

Entity Management

International Expansion

Company Formation

Global Mobility Services

Tax & Statutory Accounting

Family Business

Trust and Foundation Formation

Lifestyle & Luxury Asset Management

Succession Planning Services

Private Company Services

Treasury Services

Accounting Services & Regulatory Reporting

CFO

Global Capability Center(GCC)

Accounting

Outsourcing

Due Diligence

Enhanced Tax Incentives for Single Family Offices in Singapore

Minimum Assets Under Management (AUM)

Investment Professionals (IPs)

Minimum Spending Requirement

Tiered Spending Requirement Framework

Capital Deployment Requirement (CDR)

Cross-Border Succession Planning for UAE Family Businesses

India’s Labour Code Rollout Is Now Moving Beyond Announcements

India Moves OCI Fully Online Under Citizenship (Amendment) Rules, 2026

Your Vision, Our Mission. Let's Discuss

Get Started

About

Our Offices

Your Vision, Our Mission.
Let's Discuss