MAS Introduces Measures to Strengthen Singapore’s Competitiveness as a Leading Asset Management Hub

Key dates

2026-08-19

MAS published the announcement of the proposed tax exemption, Hedge Fund Investment Programme and Investment Management Track.

2027-01-01

The proposed tax exemption is expected to apply from Year of Assessment 2027; the precise income-period mechanics and legislative commencement remain to be confirmed.

Suggested considerations

• Firms should inventory existing carried-interest, performance-fee, incentive-allocation and other profit-participation arrangements and identify whether returns are received directly or indirectly for fund-management services.
• Tax and legal teams may wish to map each relevant fund against Sections 13D, 13O, 13OA, 13U and 13V of the Income Tax Act 1947 and retain evidence of Singapore-based management and applicable economic-substance conditions.
• Firms should avoid treating the announcement as an immediately available exemption and should monitor Budget 2027 and subsequent legislation or administrative guidance for the effective scope, rate, thresholds, attribution rules and documentation requirements.
• Compliance teams may wish to review fund, management-company, partnership and individual remuneration agreements so that the commercial basis for any profit-related return is clearly documented and distinguishable from ordinary salary or bonus remuneration.
• Asset managers considering Singapore expansion should assess whether participation in the Hedge Fund Investment Programme or the proposed Investment Management Track could support their business and talent strategy, while awaiting eligibility and application details.
• Immigration and HR teams may wish to identify senior investment professionals whose compensation is materially linked to investment performance and assess the potential implications once revised ONE Pass criteria are published.
• Firms should continue applying existing tax, licensing, employment, payroll, conduct, books-and-records and anti-avoidance requirements; this announcement does not displace those obligations.

What changed

MAS and the Ministry of Finance plan to introduce a tax exemption from Year of Assessment 2027 for qualifying profit-related returns arising from fund-management services. The exemption is intended to cover a contractual share of profits of funds qualifying under Sections 13D, 13O, 13OA, 13U or 13V of the Income Tax Act 1947, where the funds are managed by Singapore-based fund managers and the returns are received directly or indirectly by corporate entities, partnerships or individuals for providing fund-management services. It is not intended to cover ordinary salaries, bonuses or other employee remuneration. The qualifying funds already have economic-substance requirements, including minimum headcount, but MAS has not yet published the exemption rate, formula, documentation standards, a

Who is affected

• Singapore-based fund managers managing funds relying on Sections 13D, 13O, 13OA, 13U or 13V of the Income Tax Act 1947
• Corporate entities, partnerships and individuals contractually receiving profit-related returns for providing fund-management services
• Hedge-fund managers considering establishing or expanding operations, investment teams or service-provider relationships in Singapore
• Global asset-management leaders and senior investment professionals seeking eligibility under the proposed ONE Pass Investment Management Track
• Singapore prime brokers and ancillary hedge-fund service providers
• Singapore fund-administration, legal, tax, compliance and employment functions supporting qualifying arrangements

Related regulations

• Income Tax Act 1947, Sections 13D, 13O, 13OA, 13U and 13V
• Overseas Networks & Expertise (ONE) Pass framework