S-VACC is a new vehicle designed to support collective investment schemes and will offer asset managers a broader scope of asset classes and investment strategies.
A specific tax framework for S-VACC will be introduced to complement the S-VACC regulatory framework with the following key features:
- An S-VACC will be treated as a company and single entity for tax purposes;
- Tax exemption under Sections 13R and 13X of the ITA will be extended to S-VACCs;
- 10% concessionary tax rate under the Financial Sector Incentive;
- Fund Management (FSI-FM) Scheme will be extended to approved fund managers managing incentivised S-VACC; and
- GST remission for funds will be extended to incentivised S-VACCs
The conditions under the existing Section 13R, Section 13X and FSI-FM remain unchanged.
MAS will release further details of the tax framework for S-VACCs by October 2018.