Singapore Tax Frameworks: What’s the Difference?
What is it?:
Section 13X: Enhanced-Tier Fund Tax Incentive Scheme
Creates flexibility for Singapore-based funds to source for investment mandates, with no restrictions or financial penalties on the investments made by Singapore resident persons.
Section 13R: Onshore Fund Tax Incentive Scheme
Designed to facilitate domiciliation of funds into Singapore and to attract the funds of non-Singapore investors.
Section 13H: Tax Incentive
Provides tax exemption for income from funds that meet the scheme’s requirements to invest in unlisted Singapore-based companies (subject to a maximum tenure of 15 years).
|Fund’s Residence||Can be offshore or onshore||Must be a tax resident of Singapore|
|Fund Expenditure||Minimum S$200k local business spending in a year||Minimum S$200k business spending in a year||Cumulative local business spending (LBS) ≥ S$100,000 multiplied by the incentive tenure|
|Assets Under Management||Minimum S$50mil||No Restrictions||Minimum S$10mil|
|No Restrictions||Must not be 100% owned by SIngapore investors||Invests a certain percentage into unlisted Singapore-based companies by year five of the incentive or by the end of the incentive, whichever is earlier|
|Accepted Fund Legal Structures||Any funds that meet qualifying conditions including Company, Trust, Limited Partnerships, VCCs that are Singapore incorporated or redomiciled into Singapore||Company incorporated in Singapore||Limited Partnership, Company (incorporated in Singapore or elsewhere), and Variable Capital Company (VCC).|