| Since 1986, fund managers approved
under the Tax Exemption Scheme for Fund Management enjoy
a concessionary rate of tax of 10 per cent on income
earned from managing non-resident funds. Further, with
effect from Year of Assessment 1996, those which manage
more than S$5 billion worth of non-resident funds can
enjoy a reduction in the tax rate to 5 per cent on the
incremental income earned compared with the previous
year.
To encourage major fund managers to
further expand their business in Singapore and use Singapore
as a base for their regional operations, I have decided
that fund managers who have substantial operations in
Singapore will be exempted from tax altogether for income
earned from managing non-resident funds. To qualify
for the tax exemption, the fund manager must be managing
at least S$10 billion of non-resident funds in Singapore,
employ at least 7 professional fund managers and analysts,
and have a track record of 3 years operating in Singapore
under the Tax Exemption Scheme for Fund Management.
The incentive will be granted for an initial period
of 5 years with effect from Year of Assessment 1998. |
