Things to note for Singapore VCC taxation

VCC, either is non-umbrella VCC or an umbrella VCC comprising two or more sub-funds, it will be recognised as a single entity for income tax purpose.

However, each sub-fund of an umbrella VCC is regarded as a separate person for GST purposes.
Similar to companies incorporated under Companies Act, a VCC is considered a tax resident in Singapore for the assessment year if the control and management of the VCC’s business is exercised in Singapore for that year.

The tax residence of a sub-fund follows that of its umbrella VCC. This means that a sub-fund is a resident in Singapore if its umbrella VCC is a resident in Singapore.
VCC can apply various exemption of income under Section 13H, Section 13R and section 13X of Income Tax Acts. The scope of the exempted income and number of years are subjected to the approval by the relevant authorities.
Each sub-fund will calculate its own chargeable income and apply the general tax rules at sub-fund level. The sum of all sub-fund’s chargeable income will be the total chargeable income of the Umbrella VCC, then the partial tax exemption, start-up tax exemption and corporate tax rebate will be applied at Umbrella VCC, instead of sub-fund level.

For more information about VCC, please contact us and we will be happy to help you!