Singapore to offer tax exemptions and visa access for fund managers

Singapore will introduce tax exemptions on profits earned by fund managers and make it easier for investment professionals to obtain visas as it seeks to head off growing competition in the asset management sector, the central bank has said. The ‌Monetary Authority of Singapore (MAS) and the finance ministry plan to exempt from tax investment profits earned by fund managers from managing certain funds, including those of single family offices. More details will be announced in the 2027...

Singapore will introduce tax exemptions on profits earned by fund managers and widen access to a five-year visa for investment professionals as it seeks to strengthen its position in the asset management industry amid growing international competition, the Monetary Authority of Singapore (MAS) said on Wednesday.MAS and Singapore's finance ministry plan to provide tax exemptions on profits that fund managers earn from managing certain funds. These will include funds belonging to single family offices. The government will provide more details in the country's budget next year.The measures come as Singapore faces competition from other financial centres for fund managers, investment professionals and capital. Hong Kong's planned tax incentives for individual fund managers have added to the pressure.National Development Minister Chee Hong Tat, who is also deputy chairman of MAS, said on Wednesday that it was important to share the government's plans with the industry so they can take them into consideration when deciding where to locate and grow their businesses.The Alternative Investment Management Association had warned MAS in a letter in July that Hong Kong's new bill offering tax breaks on performance bonuses for individual fund managers would increase the effective tax gap between the two financial centres. It said the change could make Hong Kong more attractive.Singapore is also taking steps to make it easier for investment professionals to work in the city-state. MAS and the manpower ministry will expand access to the Overseas Networks & Expertise Pass for investment professionals.The visa is valid for up to five years before renewal. It allows professionals to work for multiple companies at the same time and removes the need to apply for a new pass when they change jobs.MAS also plans to use an investment programme to anchor hedge funds that are "committed to establishing or deepening their presence in Singapore". More details about the programme will be announced later.Singapore's asset management industry has expanded at an average annual rate of 7.5% over the past five years, according to MAS data. Assets managed by the industry have reached almost S$7 trillion.