Mas Looking Simplify Requirements Single Family Offices Qualify Tax Benefits
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The Monetary Authority of Singapore (MAS) is working to streamline the eligibility requirements for single-family offices to participate in its tax benefit programme. Deputy chairman Chee Hong Tat announced this at the Global-Asia Family Office Summit hosted by the Wealth Management Institute on Sept 29. According to Chee, the MAS aims to reduce the amount of documentation needed for applications for the Single Family Office Fund tax scheme. Additionally, the regulator seeks to simplify reporting obligations and broaden the scope of investments that qualify for the tax scheme.
In his speech, Chee noted that Singapore is projected to have the highest growth rate among global wealth management hubs through 2029. The financial sector saw an increase of 6.8% in 2024, more than double the previous year’s growth. Private banking client assets also grew by 19% in 2024, with half of the increase coming from net new inflows. However, the MAS is not complacent and has plans to further improve the country’s position in the wealth management industry.
Chee acknowledged past delays in the approval process for the Single Family Office tax scheme, which could take over a year. He stated that the regulator recognizes this is not an acceptable level of efficiency and has since reduced the approval time to three months. Additionally, a private banking working group, co-led by the MAS, is making efforts to streamline the account opening process.
Singapore has experienced a rapid rise in the number of family offices in the past four years, growing from 400 to over 2,000. This highlights the country’s attractiveness to global investors, according to Young Jin Yee, co-head of UBS Global Wealth Management APAC and country head of UBS Singapore. He also emphasized UBS’s commitment to providing value to its clients through its global network and access.
To further address potential risks and challenges, the MAS plans to propose additional measures against money laundering risks within the Single Family Office sector. This reflects the regulator’s commitment to maintaining the integrity and reputation of Singapore’s financial sector.
