Pivot to Asia II: Singapore Family Office Seminar

On the 07^th March 2023 and 13^th March 2023, Equinox GEMTZ held two virtual seminars for select audiences from all over the world. 

Equinox GEMTZ is a strategic consultancy set up to offer strategic advice in the spheres of finance, wealth management, public relations, political positioning, and security.  We help high net-worth individuals with financial engineering, utilising family offices and trusts structures to secure their assets and mitigate their risks.  We have more than a century of corporate, wealth management, and risk management experience. 

A family office is a company or trust, set up as a private wealth management advisory entity that serves high net-worth individuals, or families.  A family office differs from traditional wealth management companies because they offer a total solution to managing financial, investment, taxation and insurance needs.  They provide a broad spectrum of private wealth management services. 

Aside from traditional financial services, family offices are vehicles for various other activities, such as charity endowments, change of tax residence, business networking, entering new markets, and application for residency or citizenship.  Family offices, with trust structures, are used to conserve wealth across generations, bypass probate, minimise estate tax, and even educate the next generation.  There are two kinds of family offices.  A single-family office serves an individual and his family.  A multi-family office serves the one family of more than one individual. 

With political upheaval and economic instability around the world, we need a place where our wealth can grow.  We need a place that is politically stable and financially connected.  The key considerations include fund quantum, taxation and control of wealth.  Post-Covid-19, Singapore is the preferred destination for the wealthy.

Singapore has strong governance, political and economic stability, tax incentives, the presence of variable capital companies, strong regional and international connectivity, and the presence of the Singapore International Arbitration Centre.  Singapore had around 40 family offices several years ago.  As of end 2022, we have 700 family offices, and the number is growing. 

Singapore family offices provide a good foundation to apply for permanent residency, under specific schemes.  A Singapore passport carries a lot of benefits, especially ease of international movement, and elevated access to credit. 

Singapore intends to implement changes to the Permanent Residence qualification from 15^th March 2023.  The Monetary Authority of Singapore will announce further changes to the financial reporting of family offices from 01^st April 2023.  This is to cope with the influx of new family offices into Singapore. 

These are key takeaways for corporate taxation in Singapore.  Singapore’s standard corporate tax rate is 17%.  There is a partial tax exemption eligible for the first S$300,000 of chargeable income.  Under this condition, 75% of the first S$10,000 of chargeable income is tax exempt and 50% of the next S$290,000 of chargeable income is tax exempt.  With all available tax credits and reliefs, the average corporate tax paid varies from 10% to 14%.  Singapore has tax relief for charitable contributions and donations.  Singapore does not have a capital gains tax, or an estate tax.  This is an attractive reason for investors to set up a family office in Singapore. 

You could begin with a holding company or a trust.  Equinox GEMTZ proposes bespoke solutions specific to your needs.  You decide the financial engineering required, based on your budget and your needs. 

Phases of Setting Up a Family Office

Phase 1: Fact Find & Analysis

Phase 2: Design & Proposal

Phase 3: Set Up & Implementation

Phase 4: Management & Reporting