Singapore will introduce tax exemptions on profits earned by fund managers and make it easier for investment professionals to acquire visas as it tries to head off “growing international competition” in the asset management sector, the central bank said on Wednesday.
The Monetary Authority of Singapore and the finance ministry plan to introduce tax exemptions on the profits that fund managers earn from managing certain funds, including those belonging to “single family offices”. More details will be released in the nation’s budget next year.
National Development Minister Chee Hong Tat, who is also deputy chairman of MAS, said on Wednesday that it was important to share the government’s plans with the industry so they can take them into consideration when deciding where to locate and grow their businesses.
The Alternative Investment Management Association warned in a letter to MAS in July that Hong Kong’s new bill to introduce tax breaks on performance bonuses for individual fund managers would widen the effective tax gap with Singapore and make Hong Kong more attractive.
The central bank and the manpower ministry will expand access to the city-state’s Overseas Networks & Expertise Pass for investment professionals.
The visa lasts up to five years before it needs to be renewed and gives professionals the flexibility to work for multiple companies at any one time without having to reapply for a pass when they change jobs.
MAS will also aim to anchor hedge funds that are “committed to establishing or deepening their presence in Singapore” with an investment programme, with more details to be shared later.
Over the past five years, Singapore’s asset management industry has grown by 7.5% per year on average to almost S$7 trillion, MAS data shows.
Reuters
