Digital payment tokens, insurance policies could become tax-exempted for Singapore family offices
MAS will update the designated investment list for the family office tax exemption scheme, says Gan Kim Yong
[SINGAPORE] Singapore will update the list of investments eligible for tax exemption to keep pace with families’ evolving investment and wealth planning needs, said Gan Kim Yong, deputy prime minister and minister for energy, trade and industry (trade).
This comes as single family offices in Singapore have asked for greater flexibility in managing their portfolios and investments, such as in digital payment tokens and insurance policies, said DPM Gan at the Global-Asia Family Office Summit on Monday (Oct 5).
No further details were announced, but Gan, who also chairs the Monetary Authority of Singapore (MAS), said the central bank will announce the updated designated investment list and implementation date in due course.
Currently, fund vehicles managed by family offices can be eligible for tax exemption under sections 13O, 13OA and 13U of the Income Tax Act 1947. Assets that qualify under these schemes include stocks, debt securities, funds and trusts, derivatives and forex, commodities, overseas real estate, cash deposits and private equity.
DPM Gan noted that MAS is considering this feedback in its regular review of the tax policy framework.
“MAS works closely with the industry to keep Singapore’s frameworks competitive and responsive to families’ needs,” he said.
He also noted that Singapore’s innovation and enterprise ecosystem offers families opportunities to invest in companies that are developing solutions for Asia and the world.
Singapore’s startup ecosystem holds an estimated value of more than US$290 billion, being home to around 4,000 startups and 24 unicorns, he noted.
Families can thus build their legacy by contributing their experience, networks and patient capital to the wider economy, and become part of Singapore’s growth story, DPM Gan said.
“Singapore will continue to strengthen its wealth management ecosystem, so that families can plan with confidence and pursue new opportunities,” he said.
