Section 13O Onshore Fund Tax Incentive
A Singapore tax incentive granting tax exemption to qualifying onshore funds managed by Singapore-based fund managers.
Section 13O of the Income Tax Act provides tax exemption on specified income (primarily investment income) for qualifying onshore funds. The fund must be a Singapore-incorporated entity (commonly a VCC), managed by a Singapore-based fund manager licensed or exempted by MAS, with minimum AUM of S$10 million within 24 months and a minimum local business spend (currently S$200K). 13O is the smaller-fund counterpart to Section 13U.
A family office establishes a single-family fund as a VCC with S$15M of family capital, appoints a Singapore licensed fund manager, and applies for 13O - exempting the fund's investment returns from Singapore tax.