The Monetary Authority of Bakermckenzie (MAS) issued a circular detailing changes to the tax incentive schemes for single-family office (SFO) funds, non-single family office funds, and other fund types under Sections 13D, 13O, 13OA, and 13U of the Income Tax Act 1947. According to Businesstimes, the circular was issued in a notice dated July 31 and addressed to fund managers, trust companies, and banks. The updated conditions took effect on August 1, 2026, refining prior alterations introduced on October 1, 2024, while other provisions apply retroactively from January 1, 2025.
Singapore Updates Tax Incentives and Compliance Rules for Funds and Family Offices
Industry watchers noted that the adjustments reflect Singapore’s ongoing strategy to remain competitive as a well-regulated financial and family-office hub. The republic has experienced significant growth in the sector, with the number of single-family offices rising from approximately 400 in 2020 to more than 2,000 by the end of 2024, according to Aseanbriefing. At the same time, the government has strengthened scrutiny over capital flows and governance following high-profile money laundering cases.
Adjustments for Non-Single Family Office Funds
For non-SFO funds, the annual minimum assets under management condition invested in Designated Investments has been removed with retroactive effect from January 1, 2025. Instead, the AUM in Designated Investments functions principally as a requirement at the application stage. Minimum point-of-application thresholds remain set at SGD 5 million for funds under Sections 13O and 13OA, and SGD 50 million for funds under Section 13U.
Non-SFO funds entering these tax incentive frameworks must maintain capital contributions from third-party investors or hold a bona fide intention to raise capital from them. MAS retains the authority to revoke tax awards if a fund relies on such an intention but fails to provide subsequent evidence of third-party capital raising. Third-party investors are defined as parties unrelated to the fund management company.
Refinements to Single-Family Office Fund Conditions
New S13O, S13OA, and S13U awards for SFO funds approved on or after August 1, 2026, face updated economic and banking account conditions. These guidelines largely follow standards introduced previously on July 5, 2023, but incorporate relaxations such as extended timelines to hire investment professionals, simplified minimum AUM and capital deployment requirements, and streamlined local spending conditions.
Existing S13O, S13OA, and S13U awards for SFO funds become subject to revised annual conditions beginning in the year of assessment where the basis period ends on or after August 1, 2026. For example, tiered minimum local business spending requirements previously tied to higher asset levels have been updated based on AUM totals calculated at the end of the basis period.
Specified Income and Designated Investment Clarifications
The MAS circular also introduces updates regarding Specified Income from Designated Investments. Key adjustments include removing the 5% cap on physical investment precious metals and formally recognizing specific tokenised interests as Designated Investments.
Additional regulatory measures implemented around the same period include rules under the Global Investor Program, which requires applicants establishing a family office to invest at least SGD 50 million into equities listed on approved Singapore exchanges, excluding real estate investment trusts and business trusts.
