Singapore plans tax, visa incentives to boost fund industry

Singapore plans tax, visa incentives to boost fund industry The city state plans to exempt from tax investment profits earned by fund managers from managing certain funds Singapore will introduce tax exemptions on profits earned by fund managers and make it easier for investment professionals to obtain visas as it seeks to head off growing competition in the asset management sector, the central bank has said. The Monetary Authority of Singapore (MAS) and the finance ministry plan to exempt from tax investment profits earned by fund managers from managing certain funds, including those of single family offices. More details will be announced in the 2027 budget. MAS also said on Wednesday it would support hedge funds “committed to establishing or deepening their presence in Singapore” through an investment programme. The planned tax breaks could put Singapore on a par with regional rival Hong Kong, which is moving to expand tax-free carried-interest measures to a broader range of fund houses and individual fund managers in a bid to attract investment funds and talent. The move underscores intensifying competition between Asia’s two biggest financial centres. The Alternative Investment Management Association (Aima), a hedge fund lobby group, warned in a letter to MAS in July that Hong Kong’s proposed tax breaks on performance bonuses for individual fund managers would widen the effective tax gap with Singapore and make Hong Kong more attractive. National Development Minister Chee Hong Tat, who is also deputy chairman of MAS, said on Wednesday it was important to give the industry visibility on the government’s plans as firms weighed where to locate and expand their businesses.