Starting from October 1, 2024, family offices managing funds in Singapore must submit background check reports provided by screening service providers designated by the Monetary Authority of Singapore (MAS) when applying for family office tax incentives.
The screening service providers designated by MAS are Avvanz, BDO Advisory, DC Frontiers, Ernst & Young Advisory (EY), KPMG Services, and PricewaterhouseCoopers (PwC).
MAS stated that this regulation aims to provide a conducive operating environment for fund managers in Singapore. Under the tax incentives schemes stipulated by Sections 130 and 13U of the Income Tax Act, including the family offices’ managed fund investment tools in Singapore, they will be eligible for tax benefits provided these funds meet the scheme’s requirements.
To obtain approval for the 130 or 13U tax incentives, family office-managed fund tools must meet specific conditions regarding asset management, investment professionals, expenditure, capital allocation, and maintaining private bank accounts. New family office tax incentive applications must also include background check reports provided by any of the six designated companies mentioned above.
According to MAS, the screening process typically takes around two weeks to complete.
Applicants can contact the screening service providers directly to learn more about the services, including estimated costs. Applicants can also consult family office professionals who can introduce the screening process and incorporate it into the tax incentive application.
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