The Monetary Authority of Singapore\u2019s recent parliamentary reply estimated there were as many as 400 single family offices operating in Singapore at the end of 2020.<\/p>\n\n\n\n
The Oppenheimer family, who used to own the De Beers diamond empire has just recently set up a single family office in Singapore. Also, Kelly Ng of The Business Times compiled the following information.<\/p>\n\n\n\n Why Singapore?<\/strong><\/p>\n\n\n\n Businesses and institutions in Singapore benefit from Free Trade Agreements (FTAs), which ease trade in goods, services and investment, and Double Tax Agreements (DTAs), which set out tax liabilities on income rising from cross-border economic activities between two jurisdictions.<\/p>\n\n\n\n In September 2021, Singapore had in place as many as 26 implemented agreements; 15 bilateral FTAs and 11 regional FTAs, and close to 100 DTAs, all of which ease trade with economies worldwide.<\/p>\n\n\n\n Attracting Entrepreneurs to Singapore<\/strong><\/strong><\/p>\n\n\n\n Singapore has various programs to assist entrepreneurs and family businesses who are interested in investing in and relocating to Singapore. Its Global Investor Program (GIP) grants Singapore Permanent Resident status to individuals who meet specific criteria.<\/p>\n\n\n\n To qualify for Permanent Resident status an individual must work in an industry approved by Singapore\u2019s Economic Development Board and have an active role in the company, such as a position on the board or in the senior management team.<\/p>\n\n\n\n There are also stipulations that they must be a member of the family that runs the business, and the family must be the largest shareholder of the firm or own at least 30% of the company\u2019s shares. The company\u2019s annual turnover must be at least SGD 500 million per annum on average in the three previous years before the year the application is submitted.<\/p>\n\n\n\n The Singaporean government administers other programs aimed at attracting and retaining the talent of individuals and families from around the world.<\/p>\n\n\n\n Three of the main ones are described below.<\/p>\n\n\n\n EntrePass<\/strong><\/strong><\/p>\n\n\n\n The EntrePass is intended to attract serial entrepreneurs, high-caliber innovators or experienced investors wanting to operate a business in Singapore. The business needs to be venture-backed or own innovative technologies.<\/p>\n\n\n\n You can apply for an EntrePass if you have started, or intend to start, a private limited company registered with ACRA that is venture-backed or owns innovative technologies.<\/p>\n\n\n\n There are three main types of EntrePass:<\/p>\n\n\n\n Unlike the traditional Employment Pass, the EntrePass has no stipulated minimum salary and is not required to meet foreign worker levy or quota requirements.<\/p>\n\n\n\n Singapore\u2019s Foreign Artistic Talent Scheme (ForArts) <\/strong><\/p>\n\n\n\n The Foreign Artistic Talent Scheme (ForArts) scheme was introduced in 1991 and allows international arts professionals to become permanent residents in Singapore. The scheme\u2019s aim is to recognize the cultural significance and contribution an artist can play in helping Singapore\u2019s art and culture landscape.<\/p>\n\n\n\n ForArts considers the applicant\u2019s professional experience, achievements, ability and commitment to contribute to the advancement of the local arts scene. Applicants must also demonstrate a track record of engagement with the local public and arts community.<\/p>\n\n\n\n To be considered for the ForArts scheme, applicants must:<\/p>\n\n\n\n Single Family Office <\/strong><\/strong><\/p>\n\n\n\n The Monetary Authority of Singapore provides tax exemption for specified income derived from designated investments for funds and family offices.<\/p>\n\n\n\n The exemptions, which are subject to approval on a case-by-case basis, means that, family wealth managed by a single family office in Singapore can enjoy tax exemptions from schemes granted under 13R & 13X of the Income Tax Act.<\/p>\n\n\n\n These are known as Enhanced Tiered Fund exemptions.<\/p>\n\n\n\n Alongside the approval granted by Monetary Authority of Singapore, a single family office may apply (subjected to approval) to the Ministry of Manpower for an employment pass, allowing one family member to work for the single family office in Singapore under the 13R exemption or three family members under the 13X exemption.<\/p>\n\n\n\n While establishing their single family office, families should also consider how they can transfer family wealth to the next generation in an organized and structured manner.<\/p>\n\n\n\n According to the Monetary Authority of Singapore, \u2018single family office\u2019 typically refers to an entity which manages assets for or on behalf of only one family and is wholly owned or controlled by members of the same family. The term \u2018family\u2019 in this context may refer to individuals who are lineal descendants from a single ancestor, as well as the spouses, ex-spouses, adopted children and step-children of these individuals.<\/p>\n\n\n\n Individual Taxation<\/strong><\/p>\n\n\n\n Individual Taxation in Singapore Personal income tax in Singapore is based on a progressive structure. Find out what which income types are taxable and how the income tax applies to you as a resident vs non-resident.<\/p>\n\n\n\n The personal income tax rate in Singapore is one of the lowest in the world. In order to determine the Singapore income tax liability of an individual, the first thing that needs to be determined is the tax residency and amount of chargeable income and then apply the progressive resident tax rate to it. Key points of Singapore income tax for individuals include:<\/p>\n\n\n\n Corporate Tax in Singapore<\/strong><\/strong><\/p>\n\n\n\n Singapore\u2019s headline corporate tax rate is 17%. Subject to certain exceptions, Singapore income tax is imposed on income accruing in or derived from the Republic of Singapore and on foreign-sourced income received or deemed received in the Republic of Singapore.<\/p>\n\n\n\n Section 13R and 13X Tax exemptions <\/strong><\/strong><\/p>\n\n\n\n Any income earned from \u201cdesignated investments\u201d for a fund with Approved Section 13R\/13X exemptions would be exempted from tax in Singapore for the life of the fund. There are qualifying conditions to apply for these exemptions. The exemptions are currently available until 31 December 2024, unless further extension is granted.<\/p>\n\n\n\n Conclusion<\/strong><\/strong><\/p>\n\n\n\n Singapore is an attractive jurisdiction for family offices to be headquartered. Many prominent global families have set up in Singapore. Advantages include very encouraging regulatory and tax environment to operate and the warm weather throughout the year. Clear paths to live and work in Singapore are available to encourage investors to operate there.<\/p>\n\n\n\n Keith Wong is Director, Financial Services at EisnerAmper Singapore. Questions? Keith can be reached at keith.wong@eisneramper.sg<\/u><\/a> or +65 6305 9935<\/p>\n","protected":false},"excerpt":{"rendered":" Many businesses and individuals have discovered the benefits of Singapore\u2019s high standard of living as well as its relatively attractive corporate regime and business incentive programs. Singapore is regularly ranked as one of the safest cities in the world. Residents enjoy excellent health care, education, housing, recreation and transport facilities in a politically stable and … Read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":2465,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/posts\/2376"}],"collection":[{"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/comments?post=2376"}],"version-history":[{"count":9,"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/posts\/2376\/revisions"}],"predecessor-version":[{"id":2464,"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/posts\/2376\/revisions\/2464"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/media\/2465"}],"wp:attachment":[{"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/media?parent=2376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/categories?post=2376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.foxwood.sg\/wp-json\/wp\/v2\/tags?post=2376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.foxwood.sg\/wp-content\/uploads\/2022\/02\/playground-for-rich-famous-1024x757.png\")
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