SINGAPORE Trends and Developments Contributed by: Lee Woon Shiu and Catherine Cheung, DBS Private Bank
tax framework, specifically confirming Singapore’s approach to the Pillar Two rules. The implementa - tion of the 15% multinational minimum corporate tax under Pillar Two is well underway in Singapore. To maintain competitiveness, Singapore has enhanced alternative toolkits. The FTC incentive was extended, effective for applications received from 17 February 2024 to 31 December 2028. The scope of its withhold - ing tax exemption was expanded to include interest- like borrowing costs. This expansion is highly relevant for large family conglomerates and corporations with extensive multi-jurisdictional treasury operations man - aged from Singapore. Heightened Global Transparency and its Impact The landscape of private wealth management is increasingly characterised by an expectation of com - prehensive transparency. Over the past two decades, various international initiatives, including the Foreign Account Tax Compliance Act (FATCA) and CRS, have reshaped the environment from one centred on con - fidentiality to one demanding openness. CRS is an internationally agreed standard for the automatic exchange of financial account information between jurisdictions, aiming to combat tax evasion and ensure tax compliance. This global shift towards transpar - ency is now moving into an accelerated and broader phase, with new developments such as CRS 2.0 and the Crypto-Asset Reporting Framework (CARF) further altering traditional wealth planning approaches. Singapore upholds internationally agreed standards relating to the Exchange of Information for tax trans - parency, and has implemented CRS since 2018 to enhance global efforts in combating tax evasion and ensuring compliance. CRS 2.0 A significant development in this transparent era, aiming to address gaps identified during earlier CRS implementations, this updated framework will require clients to certify all their domestic tax residences. Financial institutions and advisers are expected to ask more probing questions, especially when clients have multiple residences, citizenships, diverse off - shore structures, or inconsistencies in their documen - tation. Trust structures are also subject to intensified examination under CRS 2.0, with a greater emphasis
on clearly identifying controlling persons and their roles, such as the settlors, protectors, beneficiaries and trustees. The Crypto-Asset Reporting Framework This is another key transparency development, designed to close reporting gaps that emerged with the widespread adoption of digital assets. CARF is analogous to CRS for cryptocurrencies, but with broader transaction-level reporting requirements for crypto-asset service providers. Tokenised funds and shares, crypto-linked products and other digital asset structures are now firmly integrated into the same reporting conversation as traditional financial assets. Singapore has adopted CARF and officially commit - ted to implementing the framework, which requires reporting crypto-asset service providers to collect and report specified transactional and user data to the Inland Revenue Authority of Singapore (IRAS). The adoption of CARF ensures that Singapore cements its status as a highly trusted, fully transparent global digital asset hub. Conclusion Singapore’s private wealth management sector contin - ues to be forward-thinking and adaptable. Its enduring appeal is built on philanthropy, sophisticated onshore structures and consistent government support. These factors collectively solidify its standing as a leading, purpose-driven wealth hub in Asia for ultra-high net worth individuals seeking substance, legitimate SFO structures and premium advisory services. Key initiatives like enhanced SFO due diligence, tax incentives and targeted programmes such as the GFP strategically attract high-quality wealth and talent while upholding robust regulatory standards. Expe - dited account opening, streamlined SFO licensing and an expanding role in gold and RMB clearing fur - ther reinforce Singapore’s global position, alongside innovation in digital assets. In an era of increasing transparency, Singapore offers a compelling environ - ment for wealth planning that prioritises substance, evidence and long-term sustainability. Disclaimer: DBS Bank is not a law firm. The informa - tion provided in this article is for general informational
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