Singapore's Monetary Authority of Singapore (MAS) registered RF Fund Management, a subsidiary of RF International Holdings, has unveiled today following success of being the 59th incorporated Variable Capital Companies (VCC) on 26th May 2020 with the Accounting and Corporate Regulatory Authority and MAS as an umbrella VCC under section 16(4) of the VCC Act, that MAS has confirmed its RF Transformation Fund VCC has been awarded the Tax Exemption Scheme for Resident Funds under Section 13R of the Income Tax Act (Cap. 134).
This award paves way, as another strategic milestone, for RF Fund Management to steadily pursue its inaugural US$50 million Private Equity Fund. With a strong focus on the Digital Economy and its Fund strategically domiciled in Singapore, this fund management tax incentive offers RF Transformation Fund VCC the efficiencies to optimise its income tax exposure in Singapore, by achieving tax neutrality and tax certainty which are key to any investment fund structure, including Singapore’s business friendly tax treatment for VCCs.
“While such tax incentive schemes or safe harbor rules for investment funds are also commonly provided in other asset and wealth management centers, Singapore has always respected the need to have economic substance and being consistent with international tax developments. Singapore’s tax incentive regimes are designed with Singapore economic substance as the underlying requirement, notwithstanding Singapore’s large tax treaty network which now stretches to over 80 comprehensive bilateral agreements,” said (Eric) Neo Say Wei, Group Chief Executive of RF International Holdings and Director of RF Transformation Fund VCC.
“The one aspect where the Singapore tax incentive schemes distinguishes themselves is the insistence on front office investment management professionals in Singapore rather than just back or mid-office employees, and this is where RF Fund Management is proud to be helmed by a leadership team of front office investment management professionals with over 60 years of combined industry experience,” said Vincent Lin H., Group Executive Chairman, RF International Holdings.
Leading by example, RF Fund Management's parent company, RF International Holdings headquartered in Singapore, has supported Singapore's digital economy ecosystem, beyond just capital. An early investor in iSTOX which is established and operated by ICHX Tech, and regulated by the MAS, RF International Holdings strategically invested US$ 3 million on 18th April 2019 and was the third ICHX's external shareholder after Singapore Exchange and Heliconia Capital, a unit of Temasek Holdings.
"We are involved in each stage of growth. From new acquisitions and market penetration, whether it be China, Japan, Singapore or other ASEAN nations, to advocacy and higher price realization for our investors, our unique ecosystem enables select mid to high growth SMEs to get their ideas off the ground through investments, mentorship, and leveraging the digital economy.
Now strategically armed with the best of breed innovative new comprehensive and robust investment funds VCC framework in Singapore, together with the awarded Tax Exemption Scheme for Resident Funds providing a range of new opportunities and compelling benefits, we invite all like-minded investors to join RF Fund Management’s distinctive Private Equity Fund - RF Transformation Fund VCC, in partnering with exceptional founding teams, earn meaningful ownership, achieving high performance gains and fueling the growth of these select SMEs in the Digital Economy space, Redefining the Future," (Eric) Neo Say Wei concluded.
