Section 13O Explained: Singapore's Onshore Fund Tax Exemption
What 13O exempts, the S$5M AUM and headcount numbers you must hit, and how it changed for 2025.
Section 13O is Singapore's onshore fund tax-exemption scheme, administered with the Monetary Authority of Singapore (MAS). It exempts qualifying income — dividends, interest and gains on designated investments — earned by a Singapore-incorporated fund that holds at least S$5 million in designated investments and employs two investment professionals.
Section 13O is Singapore's onshore (resident) fund tax-exemption scheme, administered with the Monetary Authority of Singapore (MAS) under the Income Tax Act. It exempts qualifying income — such as dividends, interest and gains on designated investments — earned by a Singapore-incorporated fund vehicle from Singapore tax, provided the fund meets MAS's conditions and keeps meeting them every year. In plain terms: a Singapore company or Variable Capital Company (VCC) with roughly S$5M or more under management and a small Singapore team can run its investment income substantially tax-free.
13O is the scheme most smaller funds and single-family offices start with. Larger or institutional managers usually look at Section 13U (the Enhanced Tier) instead — see our 13O vs 13U comparison to decide. This page is part of the Singapore fund tax incentives hub.
What is Section 13O?
Section 13O (named for the section of the Income Tax Act, and historically called the "Singapore Resident Fund" scheme) exempts the specified income of an approved onshore fund. The fund itself is a Singapore tax resident — a company or VCC — and the exemption flows from MAS approval rather than from the structure. You apply to MAS, MAS issues an award letter, and the exemption holds for the life of the fund as long as conditions are maintained.
Who qualifies for Section 13O?
To qualify, a fund generally needs to be:
- A Singapore-incorporated company or VCC (offshore vehicles look at Section 13D instead; Singapore limited partnerships use Section 13OA);
- Managed by a MAS-licensed or exempt fund manager based in Singapore;
- Holding at least S$5M in designated investments at the end of each financial year;
- Staffed by at least two investment professionals, at least one of whom is a non-family member; and
- Meeting the tiered local business spending requirement.
What are the 13O AUM and headcount numbers?
Since 1 January 2025, 13O carries a hard S$5 million minimum in designated investments, tested at the end of every financial year — not just at application. It also requires two investment professionals who are Singapore tax-resident, paid above the MAS salary floor, with at least one non-family member. Before 2025, 13O had neither a formal AUM floor nor a fixed headcount rule, which is why much of the web still quotes outdated figures.
What is the local business spending requirement?
13O funds must spend a minimum on Singapore-based services each year — fund administration, audit, tax, legal and management fees all count. The requirement is tiered by AUM:
| Fund AUM | Minimum local business spending (per year) |
|---|---|
| Below S$250M | S$200,000 |
| S$250M – S$2B | S$300,000 |
| Above S$2B | S$500,000 |
How do I apply for Section 13O?
13O requires a formal application to MAS before or shortly after the fund begins operating. You submit details of the fund, the manager, the investment professionals and projected AUM and spending. MAS reviews and issues an award letter. We cover the mechanics in how to apply via MAS. Family offices typically run the same playbook — see family office structures.
Not sure if you clear the 13O bar?
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Check my eligibility →Frequently asked questions
What is the minimum AUM for Section 13O?
S$5 million in designated investments, measured at the end of each financial year. This minimum was introduced from 1 January 2025; before then 13O had no formal AUM floor.
How many investment professionals does 13O require?
At least two investment professionals who are Singapore tax-resident and paid above the MAS salary threshold, of whom at least one must be a non-family member.
Does a VCC qualify for Section 13O?
Yes. A Singapore-incorporated VCC (or company) managed by a MAS-licensed or exempt fund manager can apply for 13O. The incentive sits on top of the fund vehicle; it is not a structure by itself.
Is Section 13O income really tax-free?
Qualifying income from designated investments is exempt from Singapore tax once MAS approves the application and the fund keeps meeting the AUM, headcount and local-spending conditions each year. It is not automatic.
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/IRAS and change periodically — confirm the current figures before acting. This page is general information, not legal, tax or financial advice.