Recently, the Monetary Authority of Singapore (MAS) released the latest policy update on tax incentives for S13O/U single family office (SFO) funds. The highlights of this update include:
Elimination of external backtesting reporting requirements Post new Frequently Asked Questions (FAQs) Home Office Tax Incentive Program to be further optimized in the future
These changes not only mean further streamlining of the application process, but also represent a more balanced regulatory approach to ensuring compliance and privacy. Here's the most important reading for you
01｜Backtracking report requirement formally eliminated (to be implemented in 2026)
There is now a major change in policy:
Beginning January 1, 2026, MAS will move to an in-house team to conduct backtesting evaluations Applicants will no longer be required to submit external backtesting reports
In other words, the application process will be more efficient and concise afterward, and it also responds to the industry's concerns about privacy protection.
02｜Added FAQs Release:Focusing on responding to the industry's top issues
The home office industry is growing rapidly, and MAS receives many questions about both:
- Qualification of investment professionals
- Relevant standards for running a business
In response to industry concerns, MAS has issued the latest batch of Supplemental FAQs as an extended note to FDD Circular 10/2024.
It is important for practitioners and applicants to be aware of this as it will have a direct impact on the day-to-day operations and tax structure design of the home office.
03｜Home Office Tax Incentive Program-Will continue to be optimized
MAS has also revealed in this update that it will continue to further "streamline" and "increase flexibility" in the S13O/U Home Office Tax Credit program.
Keywords:
More efficient, flexible and adaptable to the future of the industry
Relevant details will be announced at a future stage. Both industry consultants and applicants will be informed of the latest information at the same time.
The MAS update is a "friendly upgrade" for the SFO industry:
External backtesting report no longer required (from 2026) Supplemental FAQ clarifies more compliance details More optimization measures will be introduced in the future
For those who are running a home office or planning to apply for the Singapore home office tax incentives, these changes are worth paying high attention to.
If you have questions or need further clarification, please contact us for information.
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