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Tax Incentive Requirements for Family Offices in Singapore

Singapore Family Office Tax Incentives: 13O vs 13U vs 13D Compared (2026 Guide)

  • Modified On: July 16, 2026

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Singapore continues to strengthen its position as a global hub for family offices as a major economy in Southeast Asia. Recent updates to its tax incentives demonstrate a shift towards transparency, philanthropic impact, and local investment. As the Monetary Authority of Singapore (MAS) introduced new regulations in 2023, single family offices in Singapore now need to adhere to more rigorous standards under the major tax exemptions in the country. These include the Enhanced Tier Tax Incentive Scheme (13U), Offshore Fund Exemption Scheme (13D), and Onshore Fund Incentive Scheme (13O).

In this edition, we have explored the eligibility requirements in-depth, along with the evolving role of family offices within the financial landscape in Singapore.

Overview of Key Tax Incentives for Family Offices in Singapore

Scheme Tax Incentive Key Requirements Minimum Assets Under Management (AUM)
13D Offshore Fund Exemption Scheme Non-Singapore residents managed by a Singapore-based fund manager Non-resident in Singapore – No full ownership by Singaporean entities No minimum AUM required
13O Onshore Fund Incentive Scheme Companies incorporated in Singapore 100% Singapore investors – S$200,000 minimum annual spending – Employ at least two investment professionals (IPs) S$20 million
13U Enhanced Tier Tax Incentive Scheme Offshore and onshore entities Open to foreign investors – S$500,000 minimum annual spending – Employ at least three IPs S$50 million
Each of these schemes provides significant tax exemptions for family offices that meet the guidelines of MAS. The schemes have been designed to fostering local investment and ensure compliance with environmental and social governance (ESG) standards in Singapore.

Detailed Evaluation of Tax Schemes For Single Family Offices in Singapore

Now, let’s take a look at the detailed breakdown of tax schemes for single family offices in Singapore.

Offshore Fund Exemption Scheme (13D)

Under the 13D scheme, funds managed by Singapore-based managers on income derived from certain investments are subjected to certain tax exceptions. The eligibility for this exception depends on the non-resident status of the fund in Singapore and a structure prohibiting full ownership by Singaporean entities. However, this scheme doesn’t have any AUM or minimum local spending requirements. It is crucial for compliance and effective tax planning.

Onshore Fund Incentive Scheme (13O)

The 13O scheme encourages the establishment of fund vehicles within Singapore. It targets companies that are locally incorporated. The requirements of this scheme are as follows.

  • Investors must be entirely from Singapore
  • The minimum AUM should be $20 million
  • To strengthen local economic contributions, the minimum annual spending should be S$200,000
  • Professional staffing requirements involve two qualified investment professionals with a monthly income of at least S$3,500

 

Thus, MAS remains committed to foster local talent and developing various sectors.

Investment Allocation

Coming to investment allocation, at least 10% of AUM or S$10 million must be allocated to climate-related investments, local equities, or non-listed funds that are distributed by financial entities licensed in Singapore. Thus, the financial ecosystem will benefit from local investments, including non-listed Singapore companies with a notable presence.

Enhanced Tier Tax Incentive Scheme (13U)

The 13U is the most comprehensive scheme and applies to both onshore and offshore entities. Key components of this scheme are:

  • Jurisdiction: Flexible residency requirements
  • AUM: Minimum S$50 million to qualify
  • Annual local spending: At least S$500,000 to promote consistent reinvestment within Singapore
  • Professional staffing: There should be three investment professionals that support an advanced level of fund management and compliance oversight
In recent years the role of single family offices in Singapore in wealth management for affluent families has gained unprecedented prominence. Thus, it’s imperative to maximize tax incentives through this scheme. It allows family offices to use the tax treaties in Singapore and is applicable to Variable Capital Companies (VCCs).

Local Philanthropy and Contributions to ESG

 The Philanthropy Tax Incentive Scheme of Singapore, designed in 2023, has been effective from January 2024. It provides incentives to family offices that allocate funds towards local and global philanthropic causes. This scheme includes a provision of up to 100% tax deduction, which is capped at 40% of the income of the donor.

With this scheme, Singapore demonstrates its strategic goal to allocate capital toward important social causes. The funds donated to charities in Singapore also qualify as business expenses under the regulations of MAS. Thus, philanthropy has been embedded as a component of compliance in Singapore.

Maximize Tax Incentives with Professional Consultation Services from Experts

The tax schemes in Singapore offer a clear pathway for single family offices to achieve tax efficiency while they support local economic and social initiatives. Established advisory professionals like the IMC Group work closely with single family offices in Singapore to help affluent families manage their wealth and maximize their tax savings through incentives. With expert assistance, single family offices can optimize the tax structure amidst the dynamic regulatory environment in Singapore.

FAQs

What are the main tax incentive schemes for family offices in Singapore?

Singapore offers three primary schemes: the Offshore Fund Exemption Scheme (Section 13D), the Onshore Fund Incentive Scheme (Section 13O), and the Enhanced Tier Tax Incentive Scheme (Section 13U). Each exempts qualifying investment income from tax, with different eligibility conditions and minimum assets under management (AUM).

What is the difference between the 13D, 13O, and 13U schemes?

13D applies to non-Singapore-resident funds managed by a Singapore-based fund manager, with no minimum AUM. 13O applies to fund companies incorporated and resident in Singapore, with a S$20 million minimum AUM. 13U is the most comprehensive scheme, open to both onshore and offshore entities, including Variable Capital Companies, with a S$50 million minimum AUM and access to Singapore’s tax treaty network.

What is the minimum AUM required to qualify for the 13O scheme?

The 13O Onshore Fund Incentive Scheme requires a minimum AUM of S$20 million, along with at least S$200,000 in annual local business spending and at least two qualified investment professionals.

What is the minimum AUM required to qualify for the 13U scheme?

The 13U Enhanced Tier Tax Incentive Scheme requires a minimum AUM of S$50 million, at least S$500,000 in annual local business spending, and at least three investment professionals on staff.

Are there local investment requirements attached to these tax incentives?

Yes. Family offices under the 13O and 13U schemes must allocate the lower of 10% of AUM or S$10 million to climate-related investments, local equities, or non-listed funds distributed by Singapore-licensed financial entities. This capital deployment requirement channels family office capital into Singapore’s local financial ecosystem.

How many investment professionals must a family office employ to qualify?

The 13O scheme requires at least two investment professionals earning a minimum monthly income of S$3,500. The 13U scheme requires at least three investment professionals to support a more advanced level of fund management and compliance oversight.

What tax benefits are available for philanthropic giving by family offices in Singapore?

Under the Philanthropy Tax Incentive Scheme (PTIS), effective from January 2024, qualifying family offices can claim up to a 100% tax deduction on overseas donations made through approved local intermediaries, capped at 40% of the donor’s income. Donations to Singapore charities can also qualify as deductible business expenses under MAS regulations.

Does the 13D scheme have AUM or local spending requirements?

No. The 13D Offshore Fund Exemption Scheme has no minimum AUM or local spending requirement. Eligibility depends on the fund maintaining non-resident status in Singapore and a structure that is not fully owned by Singapore entities.
Author Bio:
Shivani
Shivani Bhakar works with international businesses on company setup, cross-border expansion, and regulatory compliance across different jurisdictions. She helps businesses evaluate incorporation options, understand banking and reporting requirements, and manage the practical considerations involved in entering new markets. With experience in corporate structuring and operational compliance, she supports business leaders in making informed decisions on Singapore shelf company acquisitions, banking readiness, and long-term market entry planning.

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