Key highlights of the tax framework for Singapore Variable Capital Companies in the e-tax guide released by the Inland Revenue Authority of Singapore
On August 28, 2020, the Inland Revenue Authority of Singapore (“IRAS”) released an e-tax guide on the tax framework for a Singapore Variable Capital Company (“VCC”), a new corporate structure for investment funds launched by the Monetary Authority of Singapore and the Accounting and Corporate Regulatory Authority.
The VCC framework will facilitate the domiciliation of investment funds in Singapore across traditional and alternative fund vehicles, for both open-ended and close-ended funds. Besides the incorporation of new funds, the VCC framework also allows fund managers to redomicile existing overseas investment funds with structures comparable to that of a VCC, by transferring their registrations to Singapore as VCCs.
The e-tax guide explains the tax implications in respect of the following:
- Corporate income tax
- Goods and Services Tax
- Stamp Duty
- Re-domiciliation of existing offshore funds to Singapore
