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How to apply for the Section 13O family office scheme

13O is the entry-tier tax scheme most Singapore family offices apply for first. Here is what MAS actually asks for, in the order you meet it, from the S$10 million starting point through to staying compliant afterward.

The short answer: a fund can apply for 13O with S$10 million in assets under management, given a two-year grace period in the letter of award to reach S$20 million. Alongside that, you need two investment professionals (at least one not a family member), a private banking account with an MAS-licensed institution, and a plan for the local spending and capital deployment conditions below.

The five conditions MAS checks before award

Everything below has to be in place, or clearly plannable, before you file. MAS's own scheme page groups them this way; miss one and the application stalls.

  1. Assets under management. S$10 million in designated investments at application, rising to S$20 million within the two-year grace period stated in your letter of award. (The steady-state comparison table on MAS's page shows S$20 million because that is the number a fund must hold once past the grace period, not the entry bar for new applicants.)
  2. Investment professionals. At least two, of whom at least one is not a family member. Each qualifying investment professional must earn more than S$3,500 a month, spend more than 50% of their time on the qualifying activity, and be a Singapore tax resident throughout the incentive period.
  3. Local business spending. A tiered requirement: funds under S$50 million AUM must spend at least S$200,000 a year, of which S$200,000 minimum must be local business spending; the requirement rises to S$500,000 at S$50 million to S$100 million AUM, and S$1 million at S$100 million AUM and above. Eligible donations and qualifying grants to blended-finance structures can count at a 2x multiplier toward the total, but the local-business-spending floor still applies separately.
  4. Capital Deployment Requirement (CDR). The fund must invest the lower of S$10 million or 10% of its AUM into one of six MAS-approved categories: listed equities, REITs, business trusts or ETFs on MAS-approved exchanges; qualifying debt securities; non-listed funds distributed by a licensed Singapore financial institution; non-listed Singapore operating companies; climate-related investments; or blended-finance structures with substantial involvement of Singapore entities.
  5. Private banking account. The fund needs a private banking account with an MAS-licensed financial institution at the point of application, and must keep it throughout the incentive period.

Filing the application

Once the fund vehicle is incorporated (usually a private limited company registered with ACRA) and the five conditions above are either met or clearly achievable within the grace period, the application goes to MAS. If MAS is satisfied, it issues a letter of award setting out the terms, including the two-year AUM grace period if you entered at the S$10 million level.

The two-year AUM grace period, explained

This is the part first-time applicants most often get wrong. The grace period does not mean "grow to S$20 million eventually." It runs from the letter of award, and MAS assesses it by either the fund's net asset value or the value of its gross assets in designated investments at the end of that two-year window, whichever the awardee elects to demonstrate.

  • If you reach S$20 million in time: the fund continues under the steady-state conditions (the S$20 million tier).
  • If you do not reach S$20 million by the end of the grace period: the award is revoked from the end of the grace period, not backdated to the start.
  • If AUM later dips below S$20 million after you have already qualified: the fund forgoes the tax exemption only for that specific basis period. It is not a permanent loss of the award, provided the fund meets the relevant conditions again in a later period.

Staying compliant after award

The award is not a one-time check. Investment professionals must remain Singapore tax residents and keep meeting the income and time-spent tests throughout the incentive period, the private banking account must stay open with an MAS-licensed institution, and the tiered spending and capital deployment conditions apply every year of assessment, not just at filing. Most families work with a corporate service provider or fund administrator to track this on an ongoing basis rather than treat the letter of award as the finish line.

13O or 13U?

If your numbers do not fit 13O, for example you are starting above S$50 million or need a larger investment team, the enhanced 13U tier may fit better. See the 13U application process, step by step, the full 13O vs 13U comparison, and the general family office setup guide for how this fits alongside incorporation, banking and the Global Investor Programme residency route.

Frequently asked questions

Do I need S$20 million to apply for 13O?

No. New applicants may apply with as little as S$10 million in assets under management, provided the letter of award includes a two-year grace period to reach S$20 million. If the fund has not reached S$20 million by the end of that grace period, the award is revoked from that point.

What happens if my AUM falls below S$20 million after I have already qualified?

If the fund reached S$20 million and later dips below it in a later year, the fund forgoes the tax exemption only for that basis period. It is not a permanent loss of the award, provided the fund meets the conditions again in a subsequent period.

Do I need a private banking account before I apply?

Yes. MAS requires the fund to hold a private banking account with an MAS-licensed financial institution at the point of application, and to maintain it throughout the incentive period.

How many investment professionals does 13O require?

At least two, of whom at least one must not be a family member. Each qualifying investment professional must earn more than S$3,500 a month, spend more than half their time on the qualifying activity, and be a Singapore tax resident throughout the incentive period.

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Sources

Conditions and figures are drawn from the Monetary Authority of Singapore's Fund Tax Incentive Scheme for Family Offices page (last updated 7 January 2026) and its FAQs on the Schemes for Family Offices (last updated 6 January 2025), fetched and verified on 18 July 2026. Thresholds and conditions change; this page is general information, not financial, tax, legal or immigration advice, and does not constitute a personalised eligibility assessment. A licensed specialist confirms your position before you file.