Singapore has always attracted everyone's attention with its open economic policy and superior tax system.

The family office in Singapore is also an ideal investment target for many high-net-worth individuals. Its powerful tax incentive system continues to attract many investors to invest!

PART1

Introduction to Singapore Family Office

A family office is an institution that provides professional management consulting and protection for the wealth and business interests of high-net-worth individuals.

In Singapore, family offices are mainly divided into two forms: single-family offices and multi-family offices.

Single-family offices provide professional services to one family, while multi-family offices provide services to multiple families.

PART2

Tax incentives

Recently, Ravi Menon, managing director of the Monetary Authority of Singapore, stated at a press conference that in order to further promote local employment, promote green transformation and develop philanthropy, Singapore will strengthen the conditions for single-family offices to enjoy preferential tax policies, and increase Provide greater guidance and incentives for local investment.

According to Singapore's current tax incentives, investment income from stocks, bonds, and real estate managed by a single-family office is considered wealth management service income.

This policy allows these investment income to enjoy the same tax treatment as wealth management service providers and pay taxes at a rate of 5%.

Compared with the higher tax burden borne by general corporate investment income, the investment income managed by a single-family office obviously enjoys more tax deductions.

In addition to lower tax rates, investment income managed by a single-family office can also be exempted from capital gains tax and dividend tax in Singapore, and enjoy various benefits such as value-added tax and inheritance tax.

PART3

Charity Tax Incentive Program

On July 5, the Monetary Authority of Singapore launched the Charitable Tax Incentive Scheme (PTIS) for family offices, effective from January 1, 2024.

Plan content

The plan allows eligible donors in Singapore to qualify for a 100% donation tax deduction, capped at 40% of the donor’s Singapore statutory income, by donating to a qualified local intermediary.

Menon said: “We hope that the launch of the Charitable Tax Incentive Scheme will make charitable giving a regular business for single-family offices in Singapore.”

There are many preferential tax policies for family offices in Singapore, which can well protect the wealth preservation and appreciation of high-net-worth individuals.

If you are interested in family offices in Singapore, or have any questions, please contact Xingyunhai International!