Family offices seeking tax exemptions in Singapore are facing unprecedented waits of at least eight months, according to a «Bloomberg» report.
A year earlier, the wait time for family offices to receive valuable tax exemptions was half as long as it is currently, «Bloomberg» reported, citing people familiar with the matter.
The long waits come as Singapore has seen a flurry of interest in setting up family offices in the city-state. A family office typically manages the assets of a single high net worth or ultra-high net worth family, but sometimes will work for multiple families. Singapore currently had around 400 single family offices as of 2020, up around five times from 2017, according to data from agency EDB, or Economic Development Board.
Deadline-Spurred Rush
In addition, service providers told «Bloomberg» a chunk of submissions came in after the Monetary Authority of Singapore (MAS) changed tax-exemption rules with a short grace period in April.
An MAS spokesperson told «Bloomberg» that the applications are «assessed thoroughly» and in some cases, may be incomplete or unclear, causing longer processing times. The spokesperson added that the central bank was working to automate and simplify the process, according to the report.
The MAS in April required family offices in the city-state to meet tougher criteria, including requiring funds they manage or advise to have at least S$10 million (US$7.3 million) under management to start, which must rise to S$20 million within two years. Requirements to hire at least two investment professionals and spend at least S$200,000 a year on business costs were also added.
