Simplified SFO tax scheme to reduce friction, ensure benefits, MAS says

MAS recently announced plans to ease requirements on the tax framework for single family offices. 

The Monetary Authority of Singapore (MAS) said its plan to simplify requirements on the tax framework for single family offices is meant to reduce operational friction and ensure its economic benefits. 

"MAS is reviewing the tax schemes for Single Family Offices to reduce operational friction and ensuring that the schemes continue to generate economic benefits for Singapore," Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS, said. 

Gan said industry feedback will be taken into account in streamlining application documentation, simplifying reporting obligations, and expanding investment types.

MAS has yet to see a net outflow of SFOs, Gan said, noting MAS regularly reviews its scheme to ensure it remains relevant and competitive, similar to other jurisdictions, like Hong Kong. 

“When families set up and maintain SFOs in Singapore, they use financial products and services offered by external service providers such as private banks, fund managers, legal and tax advisors, fund administrators, and accounting firms,” he said.

“This generates business revenue and creates jobs.”