Page 12 - Budget-2018-Highlights-en-flip
P. 12
TAX INCENTIVES
An S-VACC is a single legal entity but uses
a cellular structure with its sub-funds
operating as separate cells, each without
legal personality.
The assets and liabilities of sub-funds are
segregated. The assets of a sub-fund
cannot be used to discharge the liabilities of
or claims against the S-VACC or any other
sub-fund. Likewise, any liabilities incurred
that are attributable to a particular sub-
fund can only be discharged solely out of
the assets of that sub-fund.
This means that sub-funds with varying
risk levels, investment objectives and
classes of investors can now be housed
under a single legal entity.
Fund managers will be able to reap economies of
scale by consolidating certain administrative
functions at an umbrella fund level.
Foreign entities that are equivalent to an S-
VACC structure may, subject to meeting
conditions, re-domicile as an S-VACC in
Singapore.
10 | RSM