Section 13O Tax SchemeSingapore
Tax exemption on specified investment income for single-family-office funds with at least S$20 million of AUM. A widely used family-office structure in Singapore.
Min AUM
S$20 million
Local Spend / yr
From S$200,000
Investment Pros
2
Tax Rate
0%
- TL;DR — short answer
- A single-family-office fund awarded Section 13O on or after 1 August 2026 needs at least S$20 million of assets under management at application and at every financial year-end; 2 qualifying investment professionals (1 at application, and all 2, at least 1 of them not a family member, by the end of the award's first financial year); local spending of S$200,000 to S$1 million a year, tiered by year-end AUM; capital deployment of the lower of 10% of AUM or S$10 million; a Singapore fund administrator; a private banking account with an MAS-licensed financial institution; and MAS approval. The scheme expires on 31 December 2029; funds awarded by then keep the exemption for the life of the fund while they meet the conditions.
What is the Section 13O Scheme?
The Section 13O scheme (numbered Section 13R before the Income Tax Act 1947 2020 Revised Edition) 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 (13O) or a Singapore-registered limited partnership (13OA) 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 Conditions for Single Family Offices (2026)
| Condition | Section 13O / 13OA (SFO fund) |
|---|---|
| Fund vehicle | Singapore-incorporated, Singapore tax-resident company (13O) or Singapore-registered limited partnership (13OA). Section 13OA applies from 1 January 2025. |
| Minimum AUM | S$20 million, tested at the point of application and the end of each financial year (basis period). Investments in the family's own operating businesses do not count toward this minimum. |
| Investment professionals | 2 qualifying IPs: 1 at application, all 2 (at least 1 not a family member) by the end of the first financial year of the award — otherwise the award is revoked from its start date. A qualifying IP is a Singapore tax-resident portfolio manager, research analyst or trader paid more than S$3,500 a month. Must be engaged substantially in fund management. |
| Local spending | Tiered by AUM at each financial year-end (see below). Local business spending means: Operating expenses — remuneration, fund management fees and other operating costs — paid to contracting parties in Singapore. |
| Capital deployment | At least the lower of 10% of AUM or S$10 million, in 3 options: Listed on MAS-approved exchanges; Distributed by MAS-licensed financial institutions in Singapore (excluding equities listed outside approved exchanges); Non-listed Singapore-incorporated companies with operating businesses and substantive presence in Singapore. Counted at twice their value: Equities listed on MAS-approved exchanges; Funds with at least 30% of AUM in equities listed on approved exchanges; Blended-finance instruments distributed by licensed financial institutions in Singapore; Non-listed Singapore-incorporated operating companies with substantive presence in Singapore. First tested at the end of the first full financial year after the award starts, then every year-end. |
| Fund administrator | A Singapore fund administrator is required. |
| Private banking account | Required, with an MAS-licensed financial institution, at application and throughout. |
| MAS approval | Required. The fund applies to MAS for the award and files an Annual Declaration with MAS for each Year of Assessment. |
| Scheme expiry | 31 December 2029. Awards made by then last for the life of the fund while the conditions are met. |
Minimum local spending by year-end AUM
| AUM at financial year-end | Minimum local spending for the year |
|---|---|
| Below S$250 million | S$200,000 of local business spending |
| S$250 million to below S$2 billion | S$500,000, including at least S$300,000 of local business spending; the balance may be eligible donations and grants to blended-finance instruments (grants counted at 2x) |
| S$2 billion or more | S$1 million, including at least S$500,000 of local business spending; the balance may be eligible donations and grants to blended-finance instruments (grants counted at 2x) |
Source: MAS Circular FDD Cir 05/2026. Per MAS Circular FDD Cir 05/2026 (31 July 2026), for new single-family-office awards from 1 August 2026. Verified 14 September 2026. Funds with existing awards follow the transition rules in Annex 6B of the circular; non-single-family-office funds have different conditions. General information only, not tax or legal advice — consult a Singapore tax adviser.
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.
Set Up the Structure
Set up the Singapore fund vehicle (company for 13O, limited partnership for 13OA) and the family office that manages it; appoint a Singapore fund administrator and open a private banking account with an MAS-licensed financial institution. The fund needs S$20 million of AUM and 1 qualifying investment professional in place at application.
Submit MAS Application
File application with supporting documents including business plan, investment policy statement, and AML/KYC framework.
MAS Review
MAS reviews the application and may request additional information. Processing time is not set out in the MAS circular — confirm current timelines with your Singapore adviser.
After Approval
Employ all 2 qualifying investment professionals (at least 1 not a family member) by the end of the award's first financial year, or the award is revoked from its start date. Meet the AUM and local-spending conditions at every financial year-end, the capital-deployment condition from the end of the first full financial year, and file an Annual Declaration with MAS for each Year of Assessment.