13O / 13U Tax Exemption Scheme
The Singapore 13O / 13U Tax Exemption Scheme provides high-net-worth families with a transparent, stable, and highly operable tax planning framework. Covering investment structures, local entity operations, and expenditure requirements, it enables families to optimize tax efficiency within a compliant framework.IVYE GROUP offers full-process support—from feasibility assessment and team/funding arrangements to liaising with the Monetary Authority of Singapore (MAS) and ongoing compliance assistance—helping clients legitimately reduce tax burdens while building resilient family capital strategies.
📌 What is the 13O / 13U Tax Exemption Scheme?
The 13O and 13U schemes are tax exemption policies jointly introduced by MAS and the Inland Revenue Authority of Singapore (IRAS) to attract high-net-worth individuals to set up family offices and conduct long-term investments in Singapore.
- 13O (formerly Section 13R):Applies to fund entities incorporated and operating in Singapore. With a relatively lower investment threshold, it is suitable for newly established family offices.
- 13U (formerly Section 13X):Applies to larger families with higher asset bases. It allows broader investment scopes (including offshore assets and multi-currency portfolios) and requires a professional local team with stricter operational standards.
Eligible entities that meet the relevant conditions can enjoy Singapore corporate tax exemption on their fund investment income—significantly enhancing global asset allocation efficiency.
✅ Scope of Tax Exemption Application Services
- Eligibility assessment and application pathway design
- Investment structure and expenditure planning
- Local entity and team setup advisory
- Application materials preparation and MAS communication support
- Annual filing assistance and ongoing compliance monitoring
📍 Application Service Workflow
- Determine applicable scheme (13O / 13U) based on asset size and investment profile
- Compare exemption criteria (asset base, employment, expenditure benchmarks)
- Recommend optimal application path aligning with current policy and client goals
- Design investment structures and portfolios meeting MAS review standards (e.g., fund platform, SPV)
- Advise on annual expenditure allocation (management fees, payroll, operating expenses)
- Support in selecting external fund managers or structuring self-managed models
- Recommend incorporation options for family office entities (e.g., Pte Ltd, VCC)
- Develop recruitment plans and job specifications for Singapore-based staff
- Assist with drafting job descriptions, compensation structures, and employment agreements
- Prepare a complete application package: investment plan, corporate details, business narrative, and compliance undertakings
- Assist with drafting background reports on funding sources and operational rationale
- Coordinate with MAS through written and verbal rounds, refining materials in response to feedback
- Assist with annual reporting, tax filings, and investment audit documentation
- Monitor compliance with investment ratios, local team requirements, and expenditure benchmarks
- Provide regulatory updates, risk alerts, and advisory to safeguard long-term scheme validity
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