Mas Looking Simplify Requirements Single Family Offices Qualify Tax Benefits
The Monetary Authority of Singapore (MAS) is seeking to simplify the requirements for single-family offices to qualify for its tax benefit programme, according to the deputy chairman Chee Hong Tat. This was announced at the Wealth Management Institute’s Global-Asia Family Office Summit on September 29. The regulator intends to reduce the amount of documentation needed for the Single Family Office Fund tax scheme application process. Additionally, the MAS is exploring ways to ease reporting requirements and broaden the types of investments that are eligible for the fund tax scheme.
Chee emphasized that Singapore is projected to be the fastest-growing wealth management center through 2029, with the financial sector growing by 6.8% in 2024, more than double the previous year’s growth. Private banking client assets grew by 19% in 2024, with around half coming from net new inflows. While this growth is impressive, the MAS understands the importance of continuously improving and not becoming complacent. Chee stated, “We certainly will not rest on our laurels.”
The extended approval time of over a year for Single Family Office tax scheme applications was also highlighted by Chee. He acknowledged that this level of efficiency is not up to the standards that the MAS strives for. To address this issue, the approval time has been reduced to three months. The MAS is also working with a private banking working group to improve account opening processes.
According to Young Jin Yee, co-head of UBS Global Wealth Management APAC and country head of UBS Singapore, there has been a rapid growth in the number of family offices in Singapore over the past four years, increasing from 400 to over 2,000. This demonstrates the country’s increased appeal to global investors. UBS, being the region’s largest wealth manager, has witnessed this growth and will continue to provide valuable services to clients all over the world through their global connectivity and access.
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The MAS is also proposing additional measures to combat money laundering risks for Single Family Offices. They are committed to maintaining a robust regulatory framework while also staying agile and responsive to market needs. Chee concluded his speech by stating, “We will continue to listen to market needs, and work with our industry partners to make Singapore a trusted, vibrant and growing global wealth management hub.”