Venture Capital Fund and Fund Management Incentive
Topics To Be Discussed
Key Facts about the Venture Capital Fund and Fund Management Incentive
2. Minimum fund size of S$10 million for VCFI; OR
3. Minimum Assets under Management of S$40 million for FMI.
Benefits of Singapore Venture Capital Fund and Fund Management Incentive
- The VCFI component furnishes a notable benefit in the form of a tax exemption on qualifying income streams throughout the entire lifespan of the fund, with a maximum exemption period of 15 years.
- On the other hand, the FMI component offers a significant advantage by providing a 5% concessionary tax rate on both management fees and performance bonuses earned from the management of VC funds approved under the VCFI scheme. The FMI is granted to eligible fund managers for a duration of up to five years, with the possibility of renewal in tranches of up to five years, contingent upon meeting the stipulated qualifying conditions.
Eligibility Criteria for the VCF/FMI Incentive Singapore
To qualify for the VCF/FMI incentive, applicants must meet the following criteria:
VCFI Component Requirements:
A fund must have a minimum fund size of S$10 million.
It should accumulate cumulative Local Business Spending (LBS) of at least S$100,000 multiplied by the incentive tenure, to be fulfilled by the end of the incentive tenure.
It must invest a certain percentage into unlisted Singapore based companies by year five of the incentive or by the end of the incentive, whichever comes earlier.
Note that investments into unlisted Singapore-based companies made before being granted the Venture Capital Fund Incentive award would not be counted towards meeting the investment criteria.
How to Apply for the VCF/FMI
How We Can Help
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