The measures take effect from 2027, with details due at the Budget, typically delivered in February.
Chee Hong Tat, Minister for National Development and deputy chairman of MAS, said it was important for the government to share its plans with the industry as firms consider where to locate and expand their businesses, Bloomberg reported.
MAS and the Ministry of Finance will exempt profit-related returns arising from the provision of fund management services to qualifying funds. The exemption covers the share of a fund's profits contractually received by corporate entities, partnerships or individuals in exchange for those services, and excludes salaries, bonuses and other staff pay.
Funds must be Singapore-based and already meet economic substance requirements including minimum headcount. The exemption applies from the year of assessment 2027, capturing earnings across the full 2026 calendar year.
Bloomberg reported that the exemption appears to match Hong Kong's plan to slash taxes on carried interest, and comes as the Chinese territory regains ground, with tax cuts and a reviving listings market drawing expatriates back.
