Fund Tax Incentives
Single Family Office (SFO) Funds: Section 13O and 13U Requirements
Last updated: November 2026 · Reflects MAS Circular FDD Cir 05/2026
A family office manages the wealth of one family (a single family office, or SFO) or several families (a multi-family office). In Singapore, an SFO that meets the conditions of MAS's licensing exemption framework, and notifies MAS, may manage the family's assets without a fund management licence. The family's fund can then apply for the Section 13O or Section 13U tax incentive, which sets minimum requirements for assets, investment professionals, local business spending and local investment.
The requirements below apply to new SFO fund awards approved on or after 1 August 2026. Funds with existing awards may be subject to different conditions. This summary is for general information only and is not tax or legal advice.
Key Requirements
| Requirement | Section 13O / 13OA | Section 13U |
|---|---|---|
| Minimum assets under management (AUM) in designated investments (DI) | S$20 million, at the point of application and at the end of each financial year | S$50 million, at the point of application and at the end of each financial year |
| Investment professionals (IPs) | At least 2 qualifying IPs, at least 1 of whom is not a family member. One may be hired by the end of the first year of assessment. | At least 3 qualifying IPs, at least 1 of whom is not a family member. One may be hired by the end of the first year of assessment. |
| Capital deployment requirement (CDR) | The lower of 10% of AUM in DI or S$10 million, invested in eligible investments (see below) | Same as 13O |
| Local business spending (LBS) | Tiered by AUM in DI (see below) | Same as 13O |
| Private banking account | A private banking account with an MAS-licensed financial institution, at application and throughout the incentive period | Same as 13O |
Local Business Spending
Tiered by AUM in DI at the end of each financial year.
| AUM in DI | Minimum annual LBS | How it can be met |
|---|---|---|
| Below S$250 million | S$200,000 | Local business spending of at least S$200,000 |
| S$250 million to below S$2 billion | S$500,000 | At least S$300,000 of local business spending, with the balance from eligible donations to local charities or grants to blended finance instruments (counted at twice the amount) |
| S$2 billion and above | S$1,000,000 | At least S$500,000 of local business spending, with the balance from eligible donations or blended finance grants (counted at twice the amount) |
Capital Deployment Requirement
The fund must invest at least the lower of 10% of its AUM in DI or S$10 million in designated investments that are:
- 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 a substantive presence in Singapore
Certain investments, such as equities listed on approved exchanges and blended finance instruments, count at twice their value. The CDR must be met by the end of the first full financial year after the award begins, and at the end of each financial year after that.
Examples of Designated Investments
- Stocks and shares
- Debt securities, such as bonds, notes, commercial papers, treasury bills and certificates of deposit
- Investment funds, such as exchange-traded funds (ETFs) and other qualifying fund interests
- Physical investment precious metals, such as gold (the previous 5% cap was removed from 1 August 2026)
Qualifying Investment Professionals
SFO funds must employ qualifying investment professionals to carry out investment management in Singapore. A qualifying IP must generally:
- Hold relevant work experience or academic qualifications
- Be employed as a portfolio manager, research analyst or trader
- Earn more than S$3,500 per month
- Spend more than 50% of their working time on qualifying investment activities
- Be a Singapore tax resident throughout the incentive period
Source: MAS Circular FDD Cir 05/2026. Please refer to MAS for the full conditions.
Considering setting up a family office in Singapore?
We can help you understand your options and connect you with the relevant specialists.