Singapore plans tax, visa incentives to boost fund industry
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…
Singapore's central bank and finance ministry are set to introduce tax exemptions on fund managers' profits and streamline visa processes for investment professionals, aiming to counteract rising competition in the asset management sector, according to the Monetary Authority of Singapore (MAS). The tax breaks, detailed in the 2027 budget, may level the playing field with Hong Kong, which is expanding tax-free carried-interest measures to a greater number of fund houses and managers.
This follows concerns raised by the Alternative Investment Management Association (Aima), a hedge fund lobby group, which warns that Hong Kong's proposed tax breaks could widen the effective tax gap with Singapore, making the city more appealing. National Development Minister Chee Hong Tat highlighted the importance of publicizing these plans, as firms consider their expansion options.
Hong Kong's government has scheduled a second reading of its tax bill in the Legislative Council later this year, with the measures to take effect from the 2025-2026 tax year. Aima's Asia-Pacific co-head noted that Singapore's swift response may strengthen its competitive edge among the two financial hubs.
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