Section 13O Tax Scheme Singapore
Tax exemption on specified investment income for single family offices with S$20 million+ AUM. The most popular family office structure in Singapore.
Min AUM
S$20M
Local Spend
S$200K/yr
Staff
2 Pros
Tax Rate
0%
What is the Section 13O Scheme?
The Section 13O scheme (formerly Section 13R) provides tax exemption on specified income derived by a fund managed by a Singapore-based fund manager. It is the most common structure for single family offices in Singapore.
Under this scheme, a Singapore-incorporated company acts as the family office fund vehicle. Investment income including dividends, interest, gains from disposal of investments, and other specified income are exempt from Singapore income tax.
13O Requirements (2026)
Fund Requirements
- ✓ Minimum S$20 million AUM at point of application
- ✓ Fund must be Singapore-incorporated company
- ✓ 10% of AUM in local investments (Singapore-listed, qualifying debt securities, or funds managed by Singapore managers)
- ✓ Managed by a Singapore-based fund manager
Operational Requirements
- ✓ Minimum S$200,000 annual local business spending
- ✓ Employ at least 2 investment professionals in Singapore
- ✓ At least 1 professional must be non-family member
- ✓ Annual reporting to MAS
Tax Benefits
| Income Type | Normal Tax Rate | Under 13O |
|---|---|---|
| Dividends from investments | 17% | 0% (Exempt) |
| Interest income | 17% | 0% (Exempt) |
| Gains from disposal of investments | 0-17%* | 0% (Exempt) |
| Foreign exchange gains | 17% | 0% (Exempt) |
*Singapore generally does not tax capital gains, but gains may be taxed if considered revenue in nature.
Application Process
Pre-Application Planning
Engage tax and legal advisors. Prepare investment mandate, governance framework, and structure diagram.
Incorporate Entities
Set up Singapore fund vehicle (company limited by shares) and fund management company.
Submit MAS Application
File application with supporting documents including business plan, investment policy statement, and AML/KYC framework.
MAS Review (8-12 weeks)
MAS reviews application and may request additional information. Approval letter issued upon successful review.
Commence Operations
Transfer assets to fund, hire investment professionals, and begin investment activities.