The Monetary Authority of Singapore revised the financial sector incentive (FSI) schemes for improving the financial intermediation and to increase the capabilities of financial services and banking activities in Singapore.
Within the framework of the FSI scheme, income of the FSI scheme holders gained from qualifying activities in Singapore was subject to income tax at concessional rates of 5%, 10% or 12% (depending on the premiums granted). But according to the latest revisions, the FSI schemes are simplified in order to eliminate currency, counterparty and investment instrument restrictions. The concession tax rate for certain FSI scheme holders will also increase from 12% to 13.5%. The amendments apply to new and renewal of the holding of the scheme, which were approved on or after 1 June 2017.