Singapore plans 2027 tax break for fund managers’ profit-linked returns

The measures target managers and senior investment professionals. 

The Monetary Authority of Singapore (MAS) has announced plans to exempt qualifying profit-linked returns earned by fund managers from tax from the Year of Assessment 2027 onwards.

MAS, in collaboration with the Ministry of Finance, said the measure will apply where corporate entities, partnerships or individuals contractually receive a share of a qualifying fund’s profits for providing fund management services.

The exemption covers a share of investment profits earned by fund managers and investment professionals when they generate returns for investors in qualifying funds, but will not apply to ordinary salaries, bonuses or other forms of employee remuneration.

Further details will be announced at Budget 2027.

The measure forms part of a package targeting asset management firms and investment professionals.

MAS will also introduce a Hedge Fund Investment Programme under which it will invest with hedge fund managers that commit to establishing or expanding their presence in Singapore.

The programme will target global and regional hedge fund managers and investment talent, whilst also supporting ancillary service providers and prime brokerages.

Separately, MAS and the Ministry of Manpower plan to introduce an Investment Management Track under the Overseas Networks & Expertise Pass for global asset management leaders and senior investment professionals.

The new track may refine how salaries are assessed by recognising returns linked to investment performance and fund outcomes alongside fixed monthly salaries.