Before counting an investment professional toward a family fund’s incentive requirements, confirm who employs the person and what work they perform. A payment from another group company should be explained, not assumed to establish qualifying employment.
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
The MAS family-office tax-scheme criteria address qualifying investment professionals. Review those criteria, the current circular and the fund’s actual award together. A familiar job title does not answer every condition.
Identify the legal employer
Compare the employment contract, payroll record, bank payment and company structure. Distinguish an employee of the SFO from an employee of another business, an independent consultant or a secondee. Where one company pays on behalf of another, retrieve the actual arrangement.
Do not infer the employer solely from an email address or office location. People can work in the same premises while being employed by different legal entities.
Example: central payroll pays several group employees
A group uses one company to process payments for several entities. The family-office reviewer needs to establish the contractual employer and supporting intercompany arrangement. The bank payer is a relevant fact, but not the complete employment explanation.
Review the actual role and evidence
- Employment agreement and amendments.
- The employer and any secondment or payment arrangement.
- Portfolio-management, research or trading duties as relevant.
- Time spent and actual activity evidence.
- Salary, residence and family relationship information required by the applicable rules.
- The period in which the person is being counted.
Use current facts. A planned hire or future change in duties should not be shown as existing qualifying employment.
Keep payroll and incentive assessments distinct
A payroll payment can be correctly recorded but still need a separate eligibility assessment. Equally, a person’s genuine work does not excuse incomplete employment or payment records. Ask the accountant and tax adviser to reconcile both.
Check whether reimbursements, bonuses or other components have been confused with the salary measure relevant to the requirement. Do not reclassify payments only to create the desired result.
Check the relevant timing
Use the actual award and applicable conditions to determine when the required employment must exist and what concessions, if any, apply. Different approval histories can matter. Do not assume a general grace period covers every employee departure or arrangement.
Where the position is unclear, seek advice and official clarification where necessary. Preserve the facts and response rather than making an unsupported declaration.
Document the conclusion and future changes
Keep the eligibility assessment with the employment and incentive file. Set a review point for resignation, secondment changes, altered duties or group restructuring. Finance and HR should tell the responsible adviser when these facts change.
Does paying salary from an SFO bank account prove qualification?
No. Review employment, duties and the applicable criteria together.
Can every employee of a family business count?
Do not assume so. Group membership does not replace the specific requirements.
Related family-office and company guidance
Explore our family-office setup resources, related-party transaction guidance and family-office service contract considerations.
Get help with the family-office review
For family-office administration, accounting or tax advisory support, email [email protected] or WhatsApp +65 8501 7133. Legal advisers from our associated law firms can assist with structuring, contracts and regulatory advice where needed. Any incentive or regulatory application remains subject to the applicable official requirements and assessment.