A VCC is a new Singapore investment vehicle that has been assigned its own legal structure and corporate entity. In essence, it allows investors to hold funds within an umbrella fund, while still being treated as a single company for tax purposes.
A VCC will undoubtedly be an attractive option as an alternative to existing fund/collective investment schemes (CIS), such as unit trusts, partnerships, corporations, etc. VCCs can either be open-ended or close-ended, providing extra flexibility where needed.
As Second Minister for Finance Indranee Rajah said, “The introduction of this corporate structure, known as the variable capital company or VCC, will be a game-changer for Singapore’s fund management industry.”
The VCC is expected to substantially bolster Singapore’s reputation as one of the premiere global investment hubs, as it brings it up to speed with competitors such as Mauritius and the Cayman Islands. One of the main goals of the VCC is to encourage the re-domiciliation of these foreign funds into Singapore, with optimum ease and transparency.
If you’d like a more in-depth analysis of the benefits of the VCC, you can read InCorp article here.
