Tax and Regulatory Incentives for Family Offices in Singapore (2025 Update)
Singapore has solidified its status as Asia’s top destination for family offices—private investment vehicles established by high-net-worth individuals (HNWIs) to manage wealth, succession, and philanthropy.
By the end of 2024, the Monetary Authority of Singapore (MAS) reported over 1,400 single-family offices (SFOs), up from fewer than 500 five years ago. The city-state’s draw lies in political stability, world-class infrastructure, and a favourable tax regime supported by clear regulatory oversight.
This 2025 update outlines the latest Singapore tax incentives, regulatory changes, and compliance requirements for new and existing family offices—and how professional accounting firms in Singapore, such as TY Teoh, help investors navigate them efficiently.
Read next: Navigating Singapore’s Tax Incentive Landscape: A Step-by-Step Guide
By the end of 2024, the Monetary Authority of Singapore (MAS) reported over 1,400 single-family offices (SFOs), up from fewer than 500 five years ago. The city-state’s draw lies in political stability, world-class infrastructure, and a favourable tax regime supported by clear regulatory oversight.
This 2025 update outlines the latest Singapore tax incentives, regulatory changes, and compliance requirements for new and existing family offices—and how professional accounting firms in Singapore, such as TY Teoh, help investors navigate them efficiently.
Read next: Navigating Singapore’s Tax Incentive Landscape: A Step-by-Step Guide
Singapore’s Family Office Landscape in 2025
A family office consolidates wealth management, succession, philanthropy, and investment decisions for ultra-high-net-worth families. Singapore’s model emphasises:
The government continues to refine frameworks under Sections 13O and 13U of the Income Tax Act, ensuring family offices contribute to local job creation and capital markets.
- Tax transparency & integrity to prevent misuse of incentives
- Robust MAS oversight to ensure real economic substance
- Attractive tax exemptions for fund vehicles investing in Singapore and abroad
The government continues to refine frameworks under Sections 13O and 13U of the Income Tax Act, ensuring family offices contribute to local job creation and capital markets.
Key Tax Incentives for Family Offices (2025 Update)
1. Section 13O – Onshore Fund Tax Exemption
This scheme applies to locally incorporated and resident fund entities managed by a Singapore-based family office.
Benefits:
2025 Enhancements:
This targets genuine economic contribution rather than passive holding structures.
Benefits:
- Tax exemption on specified income from designated investments (e.g., equities, bonds, unit trusts).
- Exemption extends to foreign-sourced income remitted to Singapore.
2025 Enhancements:
- Minimum Assets Under Management (AUM): S$20 million → S$25 million.
- At least 2 investment professionals (residents) must be employed.
- Minimum annual local business spending raised to S$250,000 – S$500,000, depending on AUM.
This targets genuine economic contribution rather than passive holding structures.
2. Section 13U – Enhanced Offshore Fund Exemption
Designed for funds with global portfolios and higher AUM (over S$50 million).
Key benefits:
2025 Regulatory Update:
Related: Singapore Tax Incentives Guide for Foreigners
Key benefits:
- Tax exemption on income from designated investments (derivatives, foreign equities, private equity).
- Flexibility in fund vehicle (domestic or offshore entity).
- Exemption covers foreign source income even if remitted to Singapore.
2025 Regulatory Update:
- At least three investment professionals, including one senior decision-maker.
- Increased minimum local spending threshold to S$1 million.
- Mandatory participation in MAS’s new philanthropy reporting framework for impact transparency.
Related: Singapore Tax Incentives Guide for Foreigners
Regulatory Framework: MAS Three-Month Approval Regime
To streamline applications, MAS introduced a three-month conditional approval regime in late 2024.
Family offices may begin operations once preliminary criteria are met, while final approval is granted upon proof of:
This speeds up market entry while maintaining oversight. Accounting and audit support is vital to verify compliance documentation within the conditional window.
Family offices may begin operations once preliminary criteria are met, while final approval is granted upon proof of:
- Hiring qualified investment professionals.
- Establishing a Singapore bank account and investment structure.
- Complying with annual reporting and audit requirements.
This speeds up market entry while maintaining oversight. Accounting and audit support is vital to verify compliance documentation within the conditional window.
Complementary Tax and Regulatory Schemes
1. Philanthropy and Impact Investing Incentives
The new Philanthropy Tax Incentive Scheme (PTIS 2024) provides a 100% deduction capped at S$50 million for donations from approved family offices to Singapore Institutions of a Public Character (IPCs).
2. Financial Sector Incentive – Fund Management
Under the Financial Sector Incentive (FSI) scheme, family offices engaging in fund management may qualify for a 5% or 10% tax rate on management fees and performance income.
3. Green Investment Tax Allowance (GITA)
Family offices investing in sustainability projects or green bonds can enjoy additional deductions on qualifying expenditures.
Explore: Green Investments and Singapore Tax Incentives
Explore: Green Investments and Singapore Tax Incentives
Key Compliance and Audit Requirements
Singapore emphasises transparency and proper governance for wealth structures. To retain incentives, family offices must demonstrate:
Learn more: Corporate Tax Planning in Singapore and Incentive Schemes
- Annual audit of financial statements by a registered audit firm in Singapore.
- Substance requirements: local employment and operational presence.
- Ongoing reporting to MAS on investments, philanthropic activities, and local spending.
- Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) controls under MAS guidelines.
Learn more: Corporate Tax Planning in Singapore and Incentive Schemes
Why Singapore Remains the Preferred Hub for Family Offices
| Factor | Singapore Advantages | Regional Comparison |
|---|---|---|
| Tax Environment | Predictable 17% rate, comprehensive treaty network | Often higher and less transparent |
| Regulatory Stability | MAS oversight builds confidence | Fragmented rules in many Asian jurisdictions |
| Talent & Infrastructure | Deep financial and legal ecosystem | Limited skilled talent elsewhere |
| Philanthropy Support | Structured tax deductions under PTIS | Fewer formal frameworks |
| Residency & Lifestyle | Global mobility and safety | Often less stable politically |
How Accounting Firms Like TY Teoh Support Family Offices
Establishing and maintaining a family office in Singapore requires multi-disciplinary expertise in tax, accounting, regulation, and wealth governance.
TY Teoh provides end-to-end support:
Read more: Corporate Tax Exemptions in Singapore | Ways to Save on Corporate Tax
TY Teoh provides end-to-end support:
- Structuring & Setup: Entity formation and 13O/13U eligibility advice.
- Tax Advisory & Compliance: Preparation of fund tax returns, incentive applications, and MAS submissions.
- Audit & Governance: Independent review of financial records and investment portfolios.
- Philanthropy & Succession Planning: Integrating tax-efficient giving strategies.
- Ongoing Regulatory Reporting: Ensuring family offices remain eligible for incentives year after year.
Read more: Corporate Tax Exemptions in Singapore | Ways to Save on Corporate Tax
Case Example: 13O Family Office Establishment
Scenario:
A family with S$60 million in global assets wants to set up a Singapore family office under Section 13O.
Approach:
TY Teoh advises on fund structure, employs two investment professionals, and prepares MAS application documents.
Outcome:
Approval within three months under the new conditional regime; tax exemption secured for income from approved investments. TY Teoh continues to provide annual audit and regulatory reporting to maintain compliance.
A family with S$60 million in global assets wants to set up a Singapore family office under Section 13O.
Approach:
TY Teoh advises on fund structure, employs two investment professionals, and prepares MAS application documents.
Outcome:
Approval within three months under the new conditional regime; tax exemption secured for income from approved investments. TY Teoh continues to provide annual audit and regulatory reporting to maintain compliance.
Looking Ahead – The Future of Family Office Incentives in Singapore
- Greater Focus on Local Impact: Expect stricter employment and philanthropy requirements.
- Sustainability Alignment: Incentives to encourage ESG and green finance investments.
- Regional Integration: More cross-border collaboration with ASEAN financial centres.
Explore: Innovation Tax Incentives in Singapore | Benefits of Investing in a Singaporean Company: Tax Perspective
Conclusion: Partner with TY Teoh for Expert Family Office Advisory
Singapore’s 2025 family office incentive framework balances attractiveness with accountability. The revised 13O and 13U schemes, coupled with philanthropy and green tax incentives, make the city a global leader in sustainable wealth management.
However, qualifying for and maintaining these benefits requires precise planning, accurate reporting, and in-depth knowledge of IRAS and MAS rules.
TY Teoh, a trusted accounting firm in Singapore, provides end-to-end advisory to help you structure your family office tax-efficiently and secure regulatory approval confidently.
Start your family office journey with TY Teoh today – visit tyteoh.com for a consultation.
However, qualifying for and maintaining these benefits requires precise planning, accurate reporting, and in-depth knowledge of IRAS and MAS rules.
TY Teoh, a trusted accounting firm in Singapore, provides end-to-end advisory to help you structure your family office tax-efficiently and secure regulatory approval confidently.
Start your family office journey with TY Teoh today – visit tyteoh.com for a consultation.
