Section 13U: the Enhanced Tier Fund scheme
Qualifying income, the S$50 million AUM requirement, investment professionals and eligible fund structures.
Section 13U — commonly called the Enhanced Tier Fund scheme — is Singapore's tax incentive for larger funds, administered with the Monetary Authority of Singapore (MAS) under the Income Tax Act. Like Section 13O, it exempts qualifying income from designated investments from Singapore tax. The difference is scale: 13U is aimed at funds with at least S$50 million under management, applies to both onshore and offshore vehicles, and carries no upper limit on fund size.
If your fund is smaller or simpler, start with 13O; the 13O vs 13U comparison walks through the choice. This page is part of the Singapore fund tax incentives hub.
Update — August 2026: MAS Circular FDD Cir 05/2026 (31 July 2026) now formally separates the commercial (non-SFO) and family-office (SFO) condition sets under sections 13O, 13OA and 13U — different minimums (S$5M vs S$20M at 13O), different spending tiers, and a capital deployment requirement that applies to SFO funds only. Our full two-track breakdown.
What is the Enhanced Tier (Section 13U)?
The Enhanced Tier scheme exempts the specified income of an approved fund — onshore or offshore — that is managed from Singapore. It was designed to attract substantial fund mandates, so the qualifying bar (AUM, headcount, local spending) is higher than 13O, but the rewards scale: there is no ceiling on the fund, and the award can cover a VCC umbrella with multiple ring-fenced sub-funds under a single application.
Who qualifies for Section 13U?
- A fund (company, VCC, trust or — at the LP level — limited partnership) managed by a MAS-licensed or exempt fund manager in Singapore;
- S$50 million is the reference AUM threshold. Confirm the assets counted, structure-level treatment, measurement dates and transition rules for the applicable non-SFO or SFO track;
- At least three investment professionals, Singapore tax-resident and paid above the MAS salary floor, with at least one non-family member where the fund is family-managed; and
- Meeting the tiered local business spending requirement below.
What are the 13U numbers versus 13O?
The comparison separates fund residence from economic-substance conditions. The S$5M 13O figure relates to the non-SFO track; S$20M is the SFO reference figure. Personnel and spending must also be read by track and award date.
| Condition | Section 13O | Section 13U (Enhanced Tier) |
|---|---|---|
| Minimum AUM | S$5M non-SFO / S$20M SFO reference thresholds; confirm measurement rules | S$50M reference threshold; confirm track-specific measurement rules |
| Investment professionals | 2 qualifying professionals; family relationship conditions depend on track | 3 qualifying professionals; family relationship conditions depend on track |
| Fund domicile | Onshore (Singapore) | Onshore & offshore |
| Local business spending | Published tier reference: below S$250M → S$200k; S$250M–2B → S$300k; above S$2B → S$500k. Confirm track, award date and boundary treatment before use. | |
Institutional fund considerations
An Enhanced Tier award signals substance — a real Singapore team, real local spend and meaningful scale. Institutional LPs, pension funds and sophisticated multi-family offices often expect it as a default. It also future-proofs growth: there is no AUM ceiling to outgrow, and the umbrella VCC structure lets you add ring-fenced sub-funds under the same award. See family office structures for how larger family capital uses 13U.
Aiming for the Enhanced Tier?
Set out your fund’s AUM, investment team and vehicle arrangements to request a provider introduction for a Section 13U review.
Check my eligibility →Frequently asked questions
What is the minimum AUM for Section 13U?
S$50 million is the reference threshold. The timing and basis of the AUM test must be checked for the fund’s track, award date and applicable amendments; a universal annual re-test should not be assumed.
How many investment professionals does 13U require?
The reference requirement is three qualifying investment professionals. Check the applicable personnel criteria, including remuneration, residence and any non-family requirement, for the relevant track.
Why do institutional investors prefer 13U over 13O?
13U has no cap on fund size, can cover both onshore and offshore vehicles, and signals greater substance. Institutional LPs often expect an Enhanced Tier award as a baseline of credibility.
Can a VCC umbrella with sub-funds use 13U?
Yes. A VCC umbrella can hold an Enhanced Tier award, and MAS allows the AUM of ring-fenced sub-funds to be counted toward the S$50M threshold under the umbrella application.
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.