The Monetary Authority of Singapore announced a three-part package to encourage asset managers to base more business activity, capital allocation and talent in Singapore. The measures comprise a proposed tax exemption for profit-related fund management returns, a Hedge Fund Investment Programme and a new Investment Management Track under the Overseas Networks & Expertise Pass framework. The tax exemption, developed with the Ministry of Finance and expected to take effect from Year of Assessment 2027, would cover qualifying profit-related returns contractually received by entities or individuals for managing qualifying funds. These funds are already subject to economic substance requirements, including minimum headcount. The hedge fund programme will invest with managers committed to establishing or expanding their Singapore presence, while the new pass track, developed with the Ministry of Manpower, will target global leaders and senior investment professionals. Its eligibility assessment may recognize recurring compensation linked to investment performance and fund outcomes, in addition to fixed salaries. Further details on the tax exemption will be announced in Budget 2027. Information on the Hedge Fund Investment Programme will be released when ready.
2026-08-19Monetary Authority of Singapore
Monetary Authority of Singapore unveils tax, hedge fund and talent measures to strengthen asset management hub
The Monetary Authority of Singapore unveiled tax, investment and immigration measures to anchor more asset management activity and talent in Singapore. A targeted tax exemption is expected from Year of Assessment 2027, while a new programme will invest with hedge fund managers expanding locally. A dedicated Overseas Networks & Expertise Pass track may recognize performance-linked compensation when assessing senior investment professionals.