tax and government subsidy

The VCC is treated for tax purposes in Singapore as a company and a single entity. Tax incentives applicable to funds under sections 13R and 13X of the Income Tax Act are extended to VCCs. The financial sector incentive scheme for fund management and goods and services tax remission for funds are also applicable to VCCs, provided that all applicable incentive conditions are met. These incentives essentially make the VCC substantially tax neutral and very attractive for fund managers and investors. In addition, the government has made known its strong support for the VCC by handing out a very generous subsidy for expenses incurred when launching a VCC or redomiciling into a VCC.