13O & 13U Tax Incentives for Family Offices
The current AUM, headcount and local-spending numbers, what changed in 2025, and which scheme a family office should choose — written so advisers can use it with clients.
The 13O and 13U tax incentives are how a Singapore family office exempts qualifying investment income from tax. Both are administered by the Monetary Authority of Singapore (MAS) and both attach to a fund vehicle — for a family office, almost always a VCC — rather than to the family office itself. 13O is the onshore scheme used by most single family offices (S$5M AUM, two investment professionals); 13U is the enhanced-tier scheme for larger offices (S$50M AUM, three investment professionals). This page is written for both principals and the advisers who refer them; the site-wide tax detail lives on the fund tax incentives hub.
Should a family office apply for 13O or 13U?
Most single family offices start with 13O. It is the lower-threshold scheme and fits a family that has consolidated S$5M+ of designated investments and can staff two investment professionals. A family office crosses to 13U when AUM passes S$50M and it can field a third investment professional — and many do so deliberately because institutional counterparties, banks and co-investors tend to regard the enhanced tier more favourably. There is no benefit to over-reaching: applying for 13U before you can sustain its headcount and spending simply raises cost and compliance risk.
13O vs 13U for family offices — at a glance
| Feature | Section 13O | Section 13U (Enhanced Tier) |
|---|---|---|
| Best for | Most single family offices | Larger SFOs, MFOs, institutional investor base |
| Minimum AUM | S$5M designated investments (end of each FY) | S$50M at application and each FY |
| Investment professionals | ≥2 (≥1 non-family) | ≥3 (≥1 non-family) |
| Local business spending | Tiered: <S$250M → S$200k · S$250M–2B → S$300k · >S$2B → S$500k | |
| AUM test timing | End of each FY | At application and each FY |
| MAS application | Required | Required |
| Investor perception | Standard | Often preferred by institutions |
How many investment professionals must a family office employ?
13O requires at least two investment professionals and 13U at least three. In both schemes at least one must be a non-family member, and all must be Singapore tax-resident and paid above the MAS salary floor. This headcount rule is the biggest single driver of a family office's cost — it is what pushes the annual run-rate into the S$300k–1.5M range covered on the cost page. The broader substance obligations are on the requirements page.
What local business spending is required?
Local business spending is tiered by AUM: at least S$200,000 a year below S$250M, S$300,000 between S$250M and S$2B, and S$500,000 above S$2B. Qualifying spend includes Singapore-based fund administration, audit, tax, legal and management fees — much of which a family office incurs anyway, so the tier is usually met by genuine operating cost rather than artificial spend.
What changed for family offices in 2025?
From 1 January 2025 MAS tightened the economic-substance conditions. 13O gained a minimum-AUM test (S$5M) and a two-investment-professional requirement where it previously had neither; local spending moved from a flat figure to the tiered bands; and the AUM test must now be met at the end of every financial year, not just at application. Existing pre-2025 awards generally have until their FY ending 2027 to comply. Advisers should flag this 2027 runway to clients holding older awards.
How does a family office apply?
The fund vehicle — usually a VCC — applies to MAS, with the family office (or an appointed MAS-licensed or exempt fund manager) as the manager. The application sets out the AUM, the investment professionals, the local-spending plan and the investment mandate. We partner with MAS-licensed CMS fund managers who can act as the Permissible Fund Manager and run the filing for families that don't want to build their own management company.
Mapping a family office to 13O or 13U?
Tell us the AUM, structure and headcount — or, if you're an adviser, your client's profile — and we'll match you to a vetted partner to confirm eligibility and file with MAS.
Check eligibility →Frequently asked questions
Should a family office apply for 13O or 13U?
Most single family offices start with 13O (S$5M AUM, two investment professionals). A family office crossing S$50M with a third investment professional can apply for 13U, which institutional counterparties tend to prefer.
How many investment professionals must a family office employ?
13O requires at least two and 13U at least three, with at least one non-family member in each case. All must be Singapore tax-resident and paid above the MAS salary threshold — the biggest driver of running cost.
What local business spending must a family office incur?
Tiered by AUM: at least S$200,000 a year below S$250M, S$300,000 from S$250M to S$2B, and S$500,000 above S$2B. Qualifying spend includes Singapore-based fund admin, audit, tax, legal and management fees.
Did the family office tax incentive rules change in 2025?
Yes. From 1 January 2025, 13O gained the S$5M AUM test and the two-investment-professional rule, local spending moved to tiered bands, and the AUM test must be met every financial year-end. Existing awards generally have until their FY ending 2027 to comply.
VCC Singapore is an independent informational resource and is not a regulator, law firm or tax adviser. Tax thresholds and conditions are set by MAS and IRAS and change periodically — confirm the current figures before acting. This page is general information, not legal, tax or financial advice.