When you’re running a business, it’s easy to focus only on growth and operations. But long-term planning — for your capital, investments, and family — can make just as much of a difference to your financial position.
Singapore offers a range of government-supported wealth management incentives, designed to attract investment and provide clarity for those looking to preserve or build capital within a well-regulated framework.
Here’s what business owners should understand about these schemes in 2025.
Unlike many jurisdictions, Singapore does not tax capital gains. But the government goes a step further by offering structured tax exemptions through incentives that reward clear fund structures, transparent reporting, and local economic substance.
These incentives aren’t just for large institutions — many small and mid-sized business owners are increasingly using them as part of long-term planning strategies.
Singapore offers tax exemptions on income earned through qualifying funds, as long as those funds are managed under specific regulatory conditions.
To qualify for either scheme, fund income must come from designated investments, and there must be local economic substance — not just a paper structure.
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Singapore has become a preferred destination for family offices, particularly for founders planning succession, diversifying wealth, or separating personal from corporate assets.
To be eligible for tax benefits:
These structures often tie back to 13O/13U schemes and must meet increasing transparency and staffing requirements as regulations evolve.
Introduced to provide a flexible legal structure for fund management, the VCC lets investors or business owners operate multiple sub-funds under a single corporate umbrella.
Benefits:
VCCs must comply with ACRA’s ongoing filing and financial statement requirements — which adds a layer of complexity that requires proper administrative setup.
These schemes offer tax benefits — but only if you meet the criteria. That includes:
Mistakes or oversights can result in a loss of exemption or retrospective tax treatment. This is why structured accounting processes are essential — even (or especially) for wealth vehicles.
Even if you’re not managing a multi-million-dollar fund today, these schemes are worth understanding if you’re:
It’s not about being wealthy today — it’s about structuring things properly so your wealth, investments, and business interests are protected tomorrow.
Singapore’s tax system encourages the growth and preservation of capital — not only through low taxes but also through specific wealth management incentives designed to support fund creation, family offices, and long-term investment vehicles. If you’re a business owner thinking about succession, investing company profits, or setting up long-term structures, this 2025 guide walks you through the key schemes to know — including 13O, 13U, and VCC — and what’s required to stay compliant.
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Here are some articles you might find helpful:
Year-End Payroll Adjustments in Singapore
Amending IR8A Forms in Singapore: What Employers Need to Know
Employer’s Guide to IRAS Tax Forms for Employees in Singapore
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