An overview by Withers KhattarWong, Taxand Singapore
The Monetary Authority of Singapore recently announced updates to its 2024 budget, revising fund management tax incentive schemes with new economic criteria for funds qualifying under Sections 13D, 13O, and 13U. These changes are set to take effect in January 2025.
Kwong Wing Leon from Withers KhattarWong, our Singaporean member firm, has co-authored an article analysing these updates in more detail. They highlight key implications for institutional funds, which include:
Section 13O and Section 13U funds must maintain minimum AUMs of S$5 million and S$50 million, respectively, throughout the fund’s life.
Section 13O funds now require at least two investment professionals, while Section 13D funds must employ at least one.
Both Section 13O and Section 13U funds must meet AUM-tiered LBS, starting at S$200,000 for smaller funds and up to S$500,000 for funds with AUMs over S$2 billion.
Closed-end funds may elect to waive ongoing AUM and tiered LBS conditions.
A new scheme extends Section 13O incentives to limited partnerships.
Existing funds will have until the financial year ending in 2027 to comply with new criteria.You can read the full analysis in more detail here.
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