The Monetary Authority of Singapore (MAS) announced a package of measures aimed at strengthening Singapore’s competitiveness as a leading global asset management hub. These measures comprise:
Immigration and talent perspective: New Investment Management Track under ONE Pass
A key development from a talent mobility perspective is the introduction of the new Investment Management Track under the ONE Pass framework.
The proposed track is intended to attract global leaders and senior investment professionals who can contribute significantly to Singapore’s asset management ecosystem. The MAS has indicated that salary assessments may be refined to better reflect remuneration structures commonly adopted within the investment management industry, including recurring returns linked to investment performance and fund outcomes in addition to fixed monthly salary.
This initiative reflects Singapore’s continued commitment to attracting highly specialised investment talent and supporting the growth of substantive investment management activities in Singapore. Further details on criteria are expected to be announced in the Budget 2027 (expected to be delivered in February 2027).
Tax treatment and relief: Proposed exemption for profit-related returns
MAS and the Ministry of Finance (MOF) have announced plans to introduce a targeted tax exemption for qualifying profit-related returns arising from the provision of fund management services to qualifying funds. The exemption is expected to apply from Year of Assessment 2027, with further details to be announced at Budget 2027. Based on current announcements, the exemption is intended to apply to qualifying profit-related returns received through commercial fund arrangements, where a share of a qualifying fund’s profits is contractually received by corporate entities, partnerships or individuals, directly or indirectly, for the provision of fund management services. Qualifying funds are expected to include Singapore-managed funds that currently qualify for relevant fund tax incentives under the Income Tax Act 1947, with the precise scope to be confirmed when the detailed rules are released. Such funds are already required to meet economic substance requirements, including minimum headcount requirements.
Singapore does not currently have a standalone tax regime specifically governing carried interest or similar profit-related returns received by fund managers and investment professionals. The tax treatment of such returns generally depends on the facts and circumstances of the arrangement, including the legal form and structure through which the return is received, the capacity in which the recipient participates, the contractual terms governing the entitlement, the nature and source of the underlying profits, and whether the return is more properly characterised as employment income, service income, partnership or business income, corporate income, or a genuine investment return. Depending on these factors, the return may be taxable under ordinary employment, partnership, business or corporate income tax rules, while genuine capital or investment returns may be treated differently. The proposed exemption therefore represents a potentially significant development, as it would provide targeted tax relief for qualifying shares of investment profits arising from commercial fund management arrangements, rather than ordinary salaries, fixed remuneration or other non-qualifying employment-related compensation.
Further details will be announced at Budget 2027, which is expected around February 2027. For Singapore citizens and Singapore Permanent Residents, CPF (Central Provident Fund) treatment should be considered separately, particularly where the distinction between investment participation and employment-related remuneration is relevant. We will share further insights once the details are available.
Business and talent considerations
These measures reinforce Singapore’s continued focus on attracting substantive investment management activities, investment capital and senior investment talent. Asset managers, hedge funds, private capital firms and family offices with existing or planned Singapore operations should monitor the forthcoming details closely, particularly where senior investment professionals are remunerated through carried interest or other investment performance-linked arrangements.
Organisations may wish to review how the proposed measures could affect their Singapore structuring, remuneration models and talent mobility strategy, including whether key investment professionals may be eligible for the new Investment Management Track under the ONE Pass framework or benefit from the proposed tax exemption once further details are released.
Vialto’s immigration and tax specialists can help assess the impact of these developments and support planning once further guidance is released.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Ben Neumann
Partner
Grace Huang
Partner
Yang Li
Partner
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