Stricter Section 13O and 13U conditions for single family office funds

What changed?

MAS tightened the qualifying conditions for the Section 13O and Section 13U fund tax incentives for funds managed by single family offices, effective for new applications from 18 April 2022. The new conditions included a SGD 10 million minimum fund size for Section 13O (rising to SGD 20 million within two years), minimum investment professional headcounts, tiered business spending requirements, and a local investment requirement.

Why it matters for fund managers

Many single family office structures use VCCs, and the incentive conditions drive the economics of that choice. This was the first of several tightenings — MAS revised the conditions again in July 2023, and its FAQ page distinguishes the regimes by application date.