Section 13U Tax Scheme Singapore
Enhanced tier tax exemption for family offices with S$50 million+ AUM. Greater flexibility with offshore fund structures and broader investment mandates.
Min AUM
S$50M
Local Spend
S$500K/yr
Staff
3 Pros
Tax Rate
0%
What is the Section 13U Scheme?
The Section 13U scheme (formerly Section 13X) is the enhanced tier tax incentive for larger family offices. Unlike 13O, the 13U scheme allows the fund vehicle to be incorporated in any jurisdiction, providing greater structuring flexibility.
This scheme is ideal for families with existing offshore structures, multi-jurisdictional investments, or those requiring more complex investment mandates including direct private equity and real estate investments.
13U vs 13O Comparison
| Requirement | 13O Scheme | 13U Scheme |
|---|---|---|
| Minimum AUM | S$20 Million | S$50 Million |
| Fund Jurisdiction | Singapore only | Any jurisdiction |
| Annual Local Spending | S$200,000 | S$500,000 |
| Investment Professionals | 2 minimum | 3 minimum |
| Local Investment | 10% of AUM | 10% of AUM |
| Best For | Simpler structures | Complex, multi-jurisdictional |
Key Benefits of 13U
Offshore Fund Flexibility
Use existing BVI, Cayman, or other offshore fund structures. No need to restructure into Singapore vehicle.
Broader Investment Scope
More flexibility for direct PE investments, real estate, and alternative assets across multiple jurisdictions.
Multi-Family Capability
13U can accommodate multiple family investors, enabling multi-family office structures.
Estate Planning Benefits
Offshore structures provide additional estate planning flexibility and confidentiality benefits.
Who Should Choose 13U?
The 13U scheme is most suitable for:
- Families with S$50M+ in investable assets
- Existing offshore fund structures they wish to retain
- Complex investment mandates including direct PE
- Multi-family office aspirations
- Estate and succession planning requirements