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How Can Singapore Family Offices Maximise Tax Incentives In 2025

  • Modified On: January 12, 2026

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Singapore continues to strengthen its position as a premier destination for wealth management. By end-2024, the number of single-family offices (SFOs) in the city-state was widely reported to have surpassed 2,000, underpinned by strong financial regulation, political stability, and a competitive tax regime.

Naturally, it’s imperative to seek professional solutions from an established Singapore family office setup with corporate service provider. In the wake of the latest reforms, family offices must comply with the newly formulated regulations. These changes can have a direct impact on several crucial aspects, like:

  • AUM thresholds and how they’re measured
  • Requirements for local business expenses
  • Global Investor Program (GIP)
  • Compliance obligations under the Corporate Service Providers (CSP) Act


Given the complexity, engaging an experienced Singapore family office setup and corporate services provider is essential. Many SFOs turn to trusted advisors like IMC Group to structure their vehicles, optimise incentives, and stay ahead of compliance.

Updated AUM and Local Business Spending Requirements

As per the Monetary Authority of Singapore (MAS), the thresholds under Sections 13O, 13U, and 13D have been updated from 1st January 2025.

  • AUM is measured against Designated Investments (DI), not total assets/NAV
  • Local Business Spending (LBS) is now tiered based on the fund size.

RequirementExisting conditionsNew awards commencing between 1 January 2025 to FY ending in 2026
AUM ThresholdNo minimum AUM conditionFirst and second year of tax incentive: No minimum AUM condition. By the end of the third year of the incentive and as at end of each FY thereafter: S$5 million in DI
Local Business SpendingS$200,000 total business spending (TBS)For FY before 2027: S$200,000 TBS (no change) For FY ending in 2027 and after: Tiered LBS of S$200,000 to S$500,000 based on AUM in DI as at the end of each FY

This tiered approach ensures that larger family offices contribute proportionally to the economy of Singapore, while smaller offices remain viable.

Global Investor Program Focuses on Equity Investments

Starting 21st February, 2025, the GIP requires applicants to a family office to invest at least S$50 million into equities listed in Singapore. REITs and Business Trusts are no longer qualifying assets.

RequirementPreviousUpdated
Minimum Capital DeploymentS$50m could be allocated across several categories (e.g., listed equities/REITs/Business Trusts, qualifying debt securities, SG-distributed funds, non-listed SG-based operating companies)S$50m minimum investment in Singapore-listed equities
Qualifying AssetsBroadly definedEquities only; excludes REITs & Business Trusts
Policy SourceNot coveredParliamentary Reply, Apr 2025

This adjustment ensures the capital of family offices directly supports the capital markets in Singapore and leaves a long-term economic impact.

Corporate Service Providers Act – Making Registration and Compliance Mandatory

From June 9, 2025, the CSP has been effective in Singapore. This Act introduces registration and compliance requirements for all service providers, including nominee services. For providers, it’s mandatory to register with ACRA and meet fit-and-proper criteria. They also need to comply with AML and CFT duties.

RequirementPreviousUpdatedAuthority
LicensingNo specific CSP ActMandatory registration with ACRAACRA
Fit-and-Proper TestNot mandatedRequired for all CSP officersACRA/AGC
AML/CFT ComplianceGeneral AML dutiesExplicit AML/CFT obligations, including nominee oversight incl. enhanced CDD, record-keeping, ongoing monitoring, and nominee oversightACRA
Nominee servicesNo sector-specific fit-and-proper rule tied to CSPs.Persons acting as nominee directors by way of business must be arranged by a registered CSP and assessed fit-and-proper; breaches attract penalties.ACRA

Therefore, global investors must work closely with a compliant corporate service provider to adhere to regulations and ensure smooth operations.

Transfer Pricing Guidance for Related-Party Loans

On 1st January 2025, the IRAS in Singapore updated its transfer pricing rules. According to the new set of norms:

Item2025 position
Indicative margin+1.70% over reference rate for ≤ S$15m loans obtained/provided in 2025 (optional).
Domestic loans (SG ↔ SG)If neither party is in a lending business, you can apply indicative margin regardless of amount; TP documentation may be exempt if conditions are met.


These measures have been taken to provide clarity for family offices that engage in intra-group financing. This ensures proper tax treatment and compliance with the current regulations in Singapore.

Philanthropy Tax Incentive Scheme Remains Intact

In Singapore, family offices continue to benefit from the Philanthropy Tax Incentive Scheme. According to this scheme, approved donations can be eligible for a tax deduction up to 100%. However, it is capped at 40% of the statutory income. In 2025, the authorities further clarified operational guidelines. These developments ensure family offices can engage in structured charitable activities with greater confidence.

Supporting Next-Generation Wealth in Singapore

The regulatory reforms in Singapore serve a dual purpose:

  • Attracting long-term capital
  • Ensuring strong governance

Therefore, how family offices supporting next-generation wealth in Singapore navigate these changes requires strategic planning and professional guidance. This approach should be based on a clear understanding of new regulations regarding compliance.

Family offices in Singapore now operate within a framework that is more transparent and accountable. It facilitates wealth preservation and succession planning, while helping SFOs comply with regulatory requirements for future generations.

Professional Compliance Support For Global Investors In Singapore

For global investors, compliance in Singapore isn’t optional—it’s foundational. The IMC Group is a trusted advisory partner for family offices, combining regulatory expertise with practical execution. We help single-family offices (SFOs) set up, stay compliant, and optimise incentives, so you can focus on long-term capital deployment and succession—while we manage the day-to-day regulatory workload.

With IMC’s end-to-end support—spanning entity setup, fund/tax incentives (13O/13U/13OA/13D), GIP alignment, CSP-Act readiness, AML/CFT frameworks, governance, and tax/transfer pricing—investors can grow strategically and confidently, knowing their operating model is robust, auditable, and future-proof.

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