Tax Incentives Recommended by Equities Market Review Group
The Equities Market Review Group was set up in August 2024 to recommend measures to strengthen equities market development in Singapore.
The Review Group has submitted tax-related recommendations to the Government, which aim to encourage new listings in Singapore and increase investment demand for Singapore-listed equities.
The Government has accepted these recommendations and will introduce three tax incentives:
(A) Listing Corporate Income Tax Rebate for New Corporate Listings in Singapore
Table 1: Listing CIT Rebate for New Corporate Listings in Singapore Parameter |
Details |
Qualifying entities | Companies and registered business trusts that are tax residents in Singapore |
Tax benefit | Primary listings: 20% CIT rebate Secondary listings (with share issuance): 10% CIT rebate Subject to rebate cap of: (A) $6 million per Year of Assessment (“YA”) for qualifying entities with market capitalisation of at least $1 billion; or (B) $3 million per YA for qualifying entities with market capitalisation of less than $1 billion |
Minimum criteria | Achieve a primary or secondary (with share issuance) listing on a Singapore exchange and remain listed for 5 years. Commit to incremental local business spending or fixed asset investments, and incremental skilled employment by the end of the award tenure. |
Award tenure | 5 years per qualifying entity, non-renewable |
Scheme duration | Open for award until 31 December 2027 |
Administering agency | Interested entities can approach EDB or EnterpriseSG to enquire for more details |
(B) Enhanced CTR for New Fund Manager Listings in Singapore
Table 2: Enhanced CTR for New Fund Manager Listings in Singapore Parameter |
Details |
Qualifying entities | Singapore fund managers |
Tax benefit | 5% CTR on qualifying income |
Minimum criteria | Fund manager or its holding company achieves a primary listing on a Singapore exchange and remains listed for 5 years. Fund manager must distribute a portion of its profits as dividends. Fund manager must also meet minimum requirements for professional headcount and assets under management (“AUM”). |
Qualifying income | Fees earned from qualifying fund management and investment advisory activities under FSI-FM |
Award tenure | 5 years per fund manager, non-renewable |
Scheme duration | Open for award until 31 December 2028 |
Administering agency | Interested fund managers can approach MAS to enquire for more details |
(C) Tax Exemption on Fund Managers’ Qualifying Income Arising from Funds Investing Substantially in Singapore-Listed Equities
Table 3: Tax Exemption on Fund Managers’ Qualifying Income Arising from Funds Investing Substantially in Singapore-Listed Equities Parameter |
Details |
Qualifying entities | Singapore fund managers |
Tax benefit | Tax exemption on qualifying income |
Minimum criteria | Fund managers must meet minimum requirements for professional headcount and AUM, as currently required of FSI-FM companies. Qualifying funds must meet the following criteria: For new funds: At least 30% of AUM invested in Singapore-listed equities For existing funds: At least 30% of AUM invested in Singapore-listed equities; and Annual net inflows (i.e., subscriptions less redemptions to fund) equivalent to at least 5% of fund’s AUM in the preceding year |
Qualifying income | Fees earned from fund management and investment advisory activities related to the qualifying funds (as defined in the minimum criteria) |
Award tenure | 5 years per fund managed by fund manager, non-renewable |
Scheme duration | Open for award until 31 December 2028 |
Administering agency | Interested fund managers can approach MAS to enquire for more details |
