Statute Details
- Title: Income Tax (APTIV Safety & Mobility Services Singapore Pte Ltd — Section 13(12) Exemption) Order 2019
- Act Code: ITA1947-S489-2019
- Legislative Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Enacting Formula / Power: Made under section 13(12) of the Income Tax Act
- Order Number: S 489/2019
- Date Made: 3 July 2019
- Commencement: Not stated in the extract (practitioners should confirm in the official instrument)
- Status: Current version as at 27 Mar 2026
- Key Provision: Section 2 (Exemption)
What Is This Legislation About?
The Income Tax (APTIV Safety & Mobility Services Singapore Pte Ltd — Section 13(12) Exemption) Order 2019 is a targeted tax exemption order. In plain terms, it grants a specific exemption from Singapore income tax for certain dividends received in Singapore by a particular Singapore company—APTIV Safety & Mobility Services Singapore Pte. Ltd.
The exemption is linked to section 13(12) of the Income Tax Act. That provision empowers the Minister for Finance to grant exemptions in prescribed circumstances, typically where the exemption is part of an approved tax arrangement or incentive framework. This Order operationalises that power by specifying the exact dividends, the relevant years of assessment, and the conditions that must be satisfied.
Practically, this is not a broad-based tax reform statute. It is a bespoke instrument: it identifies (i) the recipient company, (ii) the payer company, (iii) the quantum of dividends, (iv) the basis periods/years of assessment, and (v) the conditions attached to an approval letter dated 9 May 2019. For lawyers advising on corporate tax, withholding tax planning, or compliance with approval conditions, the Order is a critical document.
What Are the Key Provisions?
Section 1 (Citation) is straightforward. It confirms the formal name of the instrument: the “Income Tax (APTIV Safety & Mobility Services Singapore Pte Ltd — Section 13(12) Exemption) Order 2019”. While this appears administrative, citation is important for legal certainty and for referencing the correct instrument in advice, filings, and correspondence with tax authorities.
Section 2 (Exemption) is the core operative provision. Subsection (1) sets out the scope of the exemption in precise terms. It provides that dividends amounting to US$62,713,110 received in Singapore by APTIV Safety & Mobility Services Singapore Pte. Ltd. (a company incorporated in Singapore) from Delphi China LLC (a company incorporated in the United States of America) are exempt from tax.
Crucially, the exemption is limited to dividends received in the basis periods for the years of assessment 2014 to 2016. This means the exemption is not for all dividends at all times; it is confined to the specified accounting/tax periods. For practitioners, this temporal limitation affects how one frames tax computations, how one documents dividend receipts, and how one ensures that the dividend amounts correspond to the correct basis periods.
Section 2(2) (Conditions) introduces a compliance element. The exemption is subject to the conditions specified in paragraphs 4 and 5 of the letter of approval dated 9 May 2019 addressed to APTIV Safety & Mobility Services Singapore Pte. Ltd. In other words, the Order itself does not list the conditions; it incorporates them by reference to an external approval letter.
This drafting approach is common in Singapore tax exemptions: the legislative instrument grants the exemption, while the detailed conditions are contained in an approval letter. For legal practitioners, this creates a practical due diligence task: the approval letter must be obtained, reviewed, and its conditions mapped to the company’s corporate actions and tax reporting obligations. If conditions are not met, the exemption may be withdrawn or denied, potentially resulting in tax exposure, penalties, or interest.
Making and signatory: The Order was made on 3 July 2019 by the Permanent Secretary, Ministry of Finance (TAN CHING YEE). While not a substantive provision, the making date and authority are relevant for verifying the instrument’s validity and for understanding the administrative timeline in relation to the approval letter (dated 9 May 2019).
How Is This Legislation Structured?
This instrument is structured as a short subsidiary legislation order with a minimal framework:
(1) Citation — identifies the Order by name.
(2) Exemption — contains the operative exemption grant, including the quantum, parties, tax periods, and the conditionality mechanism.
There are no additional parts or schedules in the extract. The key legal “architecture” is therefore concentrated in Section 2, with conditions incorporated by reference to an external letter of approval. From a practitioner’s perspective, the “structure” is less about internal sections and more about the linkage between the Order and the approval letter.
Who Does This Legislation Apply To?
The exemption applies to APTIV Safety & Mobility Services Singapore Pte. Ltd. as the recipient of the dividends. The Order is expressly drafted for that company and does not purport to apply to other taxpayers. It is therefore best understood as a company-specific tax relief instrument.
The dividends covered are those received in Singapore from Delphi China LLC (incorporated in the United States of America), and the exemption is limited to dividends amounting to US$62,713,110 for the basis periods corresponding to years of assessment 2014 to 2016. Accordingly, the scope is both person-specific and transaction-specific.
Why Is This Legislation Important?
This Order is important because it provides a legally enforceable exemption from Singapore tax for a defined stream of dividend income. For corporate counsel and tax advisers, the exemption can materially affect the company’s effective tax rate and cash tax position for the relevant years of assessment.
However, the Order’s practical value depends on compliance with the incorporated conditions. Because Section 2(2) ties the exemption to paragraphs 4 and 5 of the approval letter dated 9 May 2019, the company’s ability to claim the exemption is contingent on meeting those conditions. This makes the approval letter a central document for legal risk management. Practitioners should treat the approval letter as part of the “substantive” legal framework, even though it is not reproduced in the Order.
From an enforcement and litigation-risk perspective, the conditionality means that tax authorities may scrutinise whether the company satisfied the conditions during the relevant periods. If conditions relate to corporate structure, beneficial ownership, timing of transactions, documentation, or reporting, failure to comply could undermine the exemption. Therefore, the Order is not merely a “benefit”; it is also a compliance trigger.
Finally, the instrument illustrates how Singapore uses section 13(12) of the Income Tax Act to grant targeted relief. Lawyers advising on future structuring, dividend flows, or applications for similar exemptions should understand that the legal mechanism often involves (i) an application and approval, (ii) a ministerial power under the Income Tax Act, and (iii) a subsidiary legislation order that specifies the exemption and references the approval conditions.
Related Legislation
- Income Tax Act (Chapter 134) — in particular section 13(12) (the enabling provision for this exemption order)
- Income Tax Act — general provisions governing the charge to tax, exemptions, and the administration of tax reliefs (for context when advising on compliance and reporting)
- Timeline / Legislation history — practitioners should consult the legislation timeline to confirm the correct version and any amendments (if any) affecting the instrument
Source Documents
This article provides an overview of the Income Tax (APTIV Safety & Mobility Services Singapore Pte Ltd — Section 13(12) Exemption) Order 2019 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.