Section 13U Tax SchemeSingapore
Enhanced-tier tax exemption for single-family-office funds with at least S$50 million of AUM. The fund vehicle can be in any jurisdiction, including master-feeder and SPV structures.
Min AUM
S$50 million
Local Spend / yr
From S$200,000
Investment Pros
3
Tax Rate
0%
- TL;DR — short answer
- A single-family-office fund awarded Section 13U on or after 1 August 2026 needs at least S$50 million of assets under management at application and at every financial year-end; 3 qualifying investment professionals (2 at application, and all 3, 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 private banking account with an MAS-licensed financial institution; and MAS approval. The fund vehicle can be in any jurisdiction. 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 13U Scheme?
The Section 13U scheme (numbered Section 13X before the Income Tax Act 1947 2020 Revised Edition) is the enhanced-tier tax incentive for larger family offices. Unlike 13O, the 13U scheme allows the fund vehicle to be incorporated in any jurisdiction, providing greater structuring flexibility.
This scheme suits families with existing offshore structures or multi-jurisdictional holdings that they would rather not move into a Singapore company or limited partnership.
13U Conditions for Single Family Offices (2026)
| Condition | Section 13U (SFO fund) |
|---|---|
| Fund vehicle | Any jurisdiction — a single fund or an approved master-feeder / SPV structure. |
| Minimum AUM | S$50 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 | 3 qualifying IPs: 2 at application, all 3 (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) — the same tiers as 13O. 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 where the fund is a Singapore-incorporated, tax-resident company. |
| Private banking account | Required: at least one approved entity in the structure, with an MAS-licensed financial institution. |
| 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 7B of the circular; non-single-family-office funds have different conditions. General information only, not tax or legal advice — consult a Singapore tax adviser.
How 13U Differs from 13O
| Requirement | 13O Scheme | 13U Scheme |
|---|---|---|
| Minimum AUM | S$20 million | S$50 million |
| Fund vehicle | Singapore-incorporated, Singapore tax-resident company (13O) or Singapore-registered limited partnership (13OA) | Any jurisdiction — a single fund or an approved master-feeder / SPV structure |
| Investment professionals | 2 (1 at application) | 3 (2 at application) |
| Singapore fund administrator | Required | Required where the fund is a Singapore-incorporated, tax-resident company |
| Local spending and capital deployment | Tiered S$200,000 to S$1 million; the lower of 10% of AUM or S$10 million | Same as 13O |
Key Benefits of 13U
Offshore Fund Flexibility
The fund vehicle can be incorporated in any jurisdiction, so an existing BVI, Cayman or other offshore fund need not be restructured into a Singapore vehicle.
Master-Feeder and SPV Structures
13U can cover a single fund or an approved master-feeder / SPV structure, rather than one Singapore entity.
Estate Planning Benefits
Offshore structures provide additional estate planning flexibility and confidentiality benefits.
Who Should Choose 13U?
The 13U scheme is typically suited to:
- Families with at least S$50 million of AUM in qualifying investments
- Existing offshore fund structures they wish to retain
- Family offices that can employ 3 qualifying investment professionals (2 at application)
- Estate and succession planning requirements