Family Office Update

We would like to inform you that on 11 April 2022, the Monetary Authority of Singapore (“MAS”) announced that the application criteria for the incentives schemes under sections 13O (previously section 13R) and 13U (previously section 13X) of the Income Tax Act 1947 would be updated for fund vehicles managed or advised directly by a family office which: (i) is an exempt fund management company who manages assets for or on behalf of the family(ies) and (ii) is wholly owned or controlled by members of the same family(ies).

The application process and conditions for (i) funds set up by other applicants and (ii) applications by family offices which have submitted preliminary information before 18 April 2022 and with correspondences with the MAS in the last 6 months will not be subject to the updated conditions.

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Updated Conditions for s13O Tax Incentive Scheme

The updated conditions for section 13O are as follows:

1. 1. The fund must have a minimum fund size of S$10 million at the point of application and commit to increasing its minimum asset under management (“AUM”) to S$20 million within a 2-year grace period.
2. The family office managing or advising the fund must employ at least two investment professionals. If the family office is unable to employ two investment professionals at the point of application, the fund would be given a one-year grace period to employ the second investment professional.
3. The fund must incur at least S$200,000 in total business spending in each basis period relating to any year of assessment, subject to the tiered business spending framework set out in the table below.
4. The fund managed by the family office will invest at least 10% of its AUM or S$10 million, whichever is lower, in local investments at any one point in time. In the event that the fund is unable to invest at least 10% of its AUM or S$10 million, whichever is lower, in local investments by the point of application, the fund would be given a one-year grace period to do so. Local investments may include: (i) equities listed on Singapore-licensed exchanges, (ii) qualifying debt securities, (iii) funds distributed by Singapore-licensed/registered fund managers, (iv) private equity investments into non-listed Singapore incorporated companies (e.g., start-ups) with operating business(es) in Singapore.

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Updated Conditions for s13U Tax Incentive Scheme

The updated conditions for s13U are as follows:

1. The fund has a minimum fund size of S$50 million at the point of application.
2. The fund is managed or advised directly throughout each basis period relating to any year of assessment by a family office in Singapore, where the family office employs at least three investment professionals with at least one investment professional being a non-family member. In the event that the family office is unable to employ one non-family member as an investment professional by the point of application, the fund would be given a one-year grace period to do so.
3. The fund will incur at least S$500,000 in local business spending in each basis period relating to any year of assessment, subject to the tiered business spending framework that is set out in the table below.

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Tiered business spending framework

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Please do not hesitate to contact your relationship manager on the above matters if you have any queries.

Thank you for your attention to these matters.

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PORTCULLIS GROUP
www.portcullis.co

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家族辦公室更新訊息

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本函在此通知 貴客戶，新加坡金融管理局（下稱「金管局」）已於2022年4月11日公告，1947年所得稅法第13O條（前第13R條）及第13U條（前第13X條）所規定的獎勵計畫申請標準，對於由下列家族辦公室所直接管理或引導的基金工具進行更新：(i)該家族辦公室乃代該家族管理資產的豁免基金管理公司，及(ii)由該相同家族的成員所完全擁有或控制的家族辦公室。

下列兩情況的申請程序及條件，不受限於上述的更新後條件：(i)由其他申請人設立的基金，及(ii)提出申請的家族辦公室，已於2022年4月18日之前提交預備資料且在過去6個月與金管局有函件往來。

第13O條稅賦獎勵計畫的更新後條件

第13O條的更新後條件如下：

1. 基金必須在申請之時已具備最少新加坡幣1,000萬元的規模，並保證在兩年寬限期內增加其管理資產至最少新加坡幣2,000萬元。
2. 管理或引導基金的家族辦公室必須雇用至少兩名投資專家。若家族辦公室無法在申請之時雇用兩名投資專家，基金將有一年寬限期雇用第二名投資專家。
3. 在任何評稅年度相關的各計稅基期中，基金必須花費至少新加坡幣20萬元的總營業費用，以下列表格所示的「分級營業費用架構」為準。
4. 由家族辦公室管理的基金，應於任何時間點投資至少其管理資產的10%或新加坡幣1,000萬元（以較低者為準）於當地投資中。若基金無法於申請之時投資至少其管理資產的10%或新加坡幣1,000萬元（以較低者為準）於當地投資中，基金將有一年寬限期進行該投資。當地投資可包括：(i)由新加坡核發證照的交易所的上市股權；(ii)合格債券；(iii)由新加坡核發證照/註冊的基金管理人所分配的基金；(iv)對設立於新加坡未上市（例如新創小企業等）且在新加坡經營業務的公司所進行的私人股權投資。

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第13U條稅賦獎勵計畫的更新後條件

第13U條的更新後條件如下：

1. 基金必須在申請之時已具備最少新加坡幣5,000萬元的規模。
2. 在任何核課年度相關的各計稅基期中，基金必須皆由在新加坡的家族辦公室直接管理或引導，家族辦公室在新加坡雇用至少三名投資專家，其中至少有一名投資專家非屬該家族的成員。若家族辦公室無法在申請之時雇用一名非屬家族成員的投資專家，基金將有一年寬限期雇用之。
3. 在任何核課年度相關的各計稅基期中，基金應花費至少新加坡幣50萬元的當地營業費用，以下列表格所示的「分級營業費用架構」為準。
4. 由家族辦公室管理的基金，應於任何時間點投資至少其管理資產的10%或新加坡幣1,000萬元（以較低者為準）於當地投資中。若基金無法於申請之時投資至少其管理資產的10%或新加坡幣1,000萬元（以較低者為準）於當地投資中，基金將有一年寬限期進行該投資。當地投資可包括：(i)由新加坡核發證照的交易所的上市股權；(ii)合格債券；(iii)由新加坡核發證照/註冊的基金管理人所分配的基金；(iv)對設立於新加坡未上市（例如新創小企業等）且在新加坡經營業務的公司所進行的私人股權投資

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分級營業費用架構

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倘貴公司對上述事項有任何疑問，請洽詢貴公司的關係經理。

感謝貴公司對上述事項的關注。

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保得利集團
www.portcullis.co