Knowing Fund Management Incentive (FMI): Things Singapore SME Should Know About
There are many tax schemes in Singapore to help create a better domain for the investing parties in the city-state. The fund management incentive (FMI) is a tax relief program aimed at the fund management companies in Singapore. The primary purpose of this incentive is to promote the investments of fund management companies in the businesses in the country, and till now, it has reached its aim, with several of those companies getting considerable support from the program. So, whether you are an investor or a Small to Medium Enterprise owner, you should know about this scheme, and this is exactly what we talk about today in details.
Fund Management Incentive (FMI): What Is All About?
The Fund management incentive (FMI) is a program in Singapore which helps deduce the taxes of an approved fund management company, with a rate of 5% till a period of 10 years. The basis of the tax relief is the Management fees received from an approved venture capital fund program and a performance bonus received from the particular venture capital fund where the management fees came from. Expected to promote the investments in Singapore, this tax incentive has benefited the fund management companies as well as the business owners in the city-state.
To be eligible for the Fund Management incentive in Singapore, here are the conditions which must be fulfilled by the interested fund management companies:
- Every fund for which the tax reduction is to take place should be incorporated and based in Singapore.
- The companies should have been registered and based in Singapore.
- The company should acquire every required license from the Monetary Authority of Singapore. It includes having Capital Markers Services Licenses among the others.
If you fulfil the above conditions and have the required licenses, then you could apply for the FMI and this, you will have to contact Enterprise Singapore.
Email Address: SG_Investor_S13H@enterprisesg.gov.sg
You will get all the necessary information and might also be asked to produce other documents during the application process.
The Singapore government has always been keen on promoting the market and the business environment of the state and has been bringing many incentives, to still deduce on one of the smallest taxes in the world. So, the environment being just as supportive as the business houses would want it to be, everyone has to contribute their best to create more and create better. As for you, what you need to do is know about all the incentives, there are many such programs which could be of considerable help to all the business personnel, but many are still unknown about the different schemes. So, if you hear about something interesting and think it could be of your benefit, share the news, it will be for the betterment of all of us.
So, I hope this article helped you with every one of your questions about the FMI. If it did, then we are glad to be of your help.