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Taxation of Investment Funds in Singapore

Taxation of Investment Funds in Singapore

The investment funds industry is quite developed in Singapore, which is why the government is trying to offer a very appealing environment to investors interested in this field. Apart from the legislation, the taxation of Singapore investment funds is also treated very seriously by the authorities who offer various incentives.

Below, our company formation agents in Singapore explain how investment funds are taxed in the city-state.

What are the taxes imposed on investment funds in Singapore?

There are various types of investment funds one can establish in Singapore; however, they are all treated the same when it comes to taxationSingapore investment funds are subject to the personal or corporate income tax depending on the vehicle used to carry out the investment activities. These vehicles can have corporate or non-corporate forms.

Tax rates applied to investment funds – presented by our experts in company formation in Singapore

Investment funds created by registering limited liability companies in Singapore will be subject to the corporate tax of 17%. Singapore investment funds set up through a limited partnership will imply the taxation of the partners in the fund at a personal level, meaning they will be imposed with the personal income tax which is levied progressively with rates between 0% and 20%.

Our company registration consultants in Singapore can help foreign investors who want to establish investment funds in the city-state.

Tax incentives for investment funds in Singapore

As mentioned above, Singapore offers a very attractive tax system to investment funds by providing them with various incentives. These incentives are:

  • –          the Onshore Fund Tax Exemption Scheme which implies tax exemptions for foreign-owned investment funds;
  • –          the Offshore Fund Tax Exemption Scheme which is also subject to the same exemption from the income tax;
  • –          the Enhanced Tier Fund Tax Exemption Scheme which is available for funds with a minimum value of 50 million SGD;
  • –          the Fund Management Incentive which is applicable to Singapore-based fund managers.

Apart from these, foreign owners of Singapore investment funds can benefit from the provisions of the city-state’s double taxation agreements.

For full information on how investment funds in Singapore are taxed, please contact our specialists in company formation in Singapore. You can also rely on us if you want to starta company in this city-state.