Navigating tax and accounting challenges in family offices
Identify common tax and accounting challenges for family offices, and explore effective strategies to address them.

Effectively navigating the complex regulatory and compliance landscape remains a significant challenge for companies in Singapore's asset and wealth management industry. Without robust governance frameworks and internal controls, many risk falling behind in an increasingly competitive and regulated market. Proactively addressing these common pitfalls is essential to maintaining regulatory adherence and building a strong track record that supports long-term growth.
The following practical strategies can enable companies to navigate the common challenges in the asset and wealth management industry.
Non-compliance with regulatory requirements to hold an Annual General Meeting (AGM) unless exempted, file annual returns with the Accounting and Corporate Regulatory Authority (ACRA), and maintain up-to-date company registers, including the non-publicly available Register of Registrable Controllers (RORC), will result in breaches of the Act and lead to serious consequences for a company.
Lapses often arise from poor internal governance, unfamiliarity with filing requirements and deadlines, or mismanagement of corporate records. Smaller companies, family offices in particular, may overlook these processes due to limited human resources allocated internally to the relevant supporting functions. This can lead to consequences that include escalating penalties, delays in capital transactions due to incomplete or inaccurate records, compromised compliance records with ACRA, reputational loss, and eroded stakeholder confidence.
Singapore private limited companies require positive retained earnings to pay dividends, as distributing dividends from capital is not permissible.
Paying dividends from a robust profit reserve ensures shareholders receive steady returns without compromising the company's ability to fund its operations and growth. Proceeding with dividend payments despite a financial loss can lead to fiscal instability and significant legal consequences for the board of directors.
Certain small companies may be eligible for a statutory audit exemption if they meet specific criteria established under the Act over the relevant financial years. Misinterpreting these criteria can lead to erroneous filing of unaudited financial statements, possible court summons, costly and cumbersome remediation procedures.
In particular, VCCs must consider specific compliance obligations under the Variable Capital Companies Act 2018. Although VCCs are identified as a company, the statutory requirements are different from those of private limited companies. Companies without a local advisor to navigate and track all relevant obligations may encounter difficulties in identifying which requirements are relevant, leading to unintended non-compliance.
By diligently complying with statutory requirements and understanding exemption criteria, companies can significantly mitigate risks such as penalties, reputational damage, and operational inefficiencies. In addition, a robust governance framework that facilitates effective decision-making, audits, and regulatory reviews can enhance investor confidence and foster a culture of compliance and integrity within the organisation, driving sustainability and enduring success in a dynamic business landscape.
For more information, please visit our AWMS website.
Identify common tax and accounting challenges for family offices, and explore effective strategies to address them.
Simplify and transform your daily business life through our wide range of services and co-sourcing solutions, leveraging on technology and efficient data management.
PwC's survey of asset managers and institutional investors reveals disruptive technologies are reshaping investor expectations and unlocking new markets.
gsap_scrolltrigger