Statute Details
- Title: Income Tax (CapitaLand Commercial Trust, etc. — Section 13(12) Exemption) Order 2022
- Act Code: ITA1947-S613-2022
- Legislation Type: Subsidiary Legislation (SL)
- Enacting / Authorising Provision: Powers conferred by section 13(12) of the Income Tax Act 1947
- Citation: S 613/2022 (No. S 613)
- Date Made: 23 July 2022
- Key Provision(s): Section 1 (Citation); Section 2 (Exemption)
- Status (as provided): Current version as at 27 Mar 2026
- Commencement: The Order applies to specified income “on or after” 3 November 2020 (see Section 2)
What Is This Legislation About?
The Income Tax (CapitaLand Commercial Trust, etc. — Section 13(12) Exemption) Order 2022 is a targeted tax exemption instrument made under the Income Tax Act 1947. In practical terms, it grants exemption from Singapore income tax for certain categories of investment income received in Singapore by specified Singapore entities, where that income arises from cross-border arrangements involving real estate investment trusts (REITs) and property-holding entities.
The Order is anchored in section 13(12) of the Income Tax Act 1947, which empowers the Minister for Finance to exempt particular income (or classes of income) from tax in circumstances that meet the statutory framework. This particular Order is not a general tax reform measure; it is a bespoke exemption tied to specific counterparties and specific income streams.
From a practitioner’s perspective, the key value of the Order lies in its precision: it identifies (i) the recipient entities in Singapore, (ii) the foreign sources of income, (iii) the type of income (distribution income, dividends, interest), and (iv) the relevant timing (“on or after 3 November 2020”). It also makes clear that the exemptions are conditional upon requirements set out in a letter of approval.
What Are the Key Provisions?
Section 1 (Citation) is straightforward. It provides the formal name by which the Order may be cited: the “Income Tax (CapitaLand Commercial Trust, etc. — Section 13(12) Exemption) Order 2022”. While this is standard drafting, it matters for legal referencing in submissions, tax computations, and correspondence with the Inland Revenue Authority of Singapore (IRAS).
Section 2 (Exemption) is the operative provision. It sets out three distinct exemption limbs, each covering different recipients and different types of income. The exemptions apply to income “received in Singapore” by the specified Singapore companies, in their relevant capacities, from specified foreign entities, and only for income received on or after 3 November 2020.
Section 2(1): Distribution income exemption (HSBC Institutional Trust Services (Singapore) Limited as trustee)
The Order exempts distribution income received in Singapore by HSBC Institutional Trust Services (Singapore) Limited (a Singapore-incorporated company) in its capacity as trustee of CapitaLand Commercial Trust (a trust constituted in Singapore). The distribution income must be received from Sentral REIT (formerly known as MRCB‑Quill REIT), which is a real estate investment trust listed in Malaysia. The exemption applies to distribution income received on or after 3 November 2020.
Section 2(2): Dividend and interest exemption (CCT Galaxy One Pte. Ltd. from Gallileo Property S.a.r.l)
The Order exempts dividend income and interest income received in Singapore by CCT Galaxy One Pte. Ltd. (a Singapore-incorporated company) from Gallileo Property S.a.r.l (a company incorporated in Luxembourg). Again, the exemption applies to such income received on or after 3 November 2020.
Section 2(3): Dividend and interest exemption (CCT Mercury One Pte. Ltd. from MAC Property Company B.V. and MAC Car Park Company B.V.)
Similarly, the Order exempts dividend income and interest income received in Singapore by CCT Mercury One Pte. Ltd. from MAC Property Company B.V. and MAC Car Park Company B.V. (both incorporated in the Netherlands). The timing requirement is the same: the income must be received on or after 3 November 2020.
Section 2(4): Conditionality—approval letter dated 11 June 2020
The exemptions in sub-paragraphs (1) to (3) are subject to the conditions specified in a letter of approval dated 11 June 2020 addressed to EY Corporate Advisors Pte. Ltd.. This is a critical compliance point. Even where the income appears to fall squarely within the categories and counterparties listed, the exemption may be unavailable if the conditions in the approval letter are not satisfied.
For legal and tax practitioners, this means the approval letter is not merely background documentation—it is effectively part of the exemption’s legal architecture. In practice, advisers should ensure that the relevant conditions (however framed—e.g., structural, documentation, reporting, or anti-abuse requirements) are understood, implemented, and evidenced for the relevant tax years.
How Is This Legislation Structured?
The Order is structured in a compact, two-part format typical of targeted exemption instruments:
(a) Section 1 (Citation): identifies the short title for referencing.
(b) Section 2 (Exemption): contains the substantive tax exemption rules. Section 2 is subdivided into four sub-paragraphs: three substantive exemption limbs (distribution income; dividends and interest for two separate Singapore recipients) and one conditionality clause.
Notably, the extract does not show additional parts or schedules. There is no separate definitions section in the extract; instead, the Order relies on descriptive parentheticals identifying the entities and their jurisdictions, and it uses the statutory concept of “exempt from tax” without further elaboration.
Who Does This Legislation Apply To?
The Order applies to specific Singapore entities receiving specified types of income in Singapore. It is not drafted as a general exemption for all taxpayers investing in foreign REITs or foreign property companies. The recipients are explicitly named:
- HSBC Institutional Trust Services (Singapore) Limited, acting as trustee of CapitaLand Commercial Trust (for distribution income from Sentral REIT);
- CCT Galaxy One Pte. Ltd. (for dividend and interest income from Gallileo Property S.a.r.l);
- CCT Mercury One Pte. Ltd. (for dividend and interest income from MAC Property Company B.V. and MAC Car Park Company B.V.).
In addition, the Order applies only to income that is (i) received in Singapore, (ii) derived from the specified foreign counterparties, (iii) of the specified income type, and (iv) received on or after 3 November 2020. The conditionality in Section 2(4) further means that the exemption is contingent on compliance with the conditions in the 11 June 2020 approval letter.
Accordingly, taxpayers and advisers should treat this Order as a “fit-for-purpose” exemption: it benefits only those transactions and recipients that match the Order’s precise descriptions and satisfy the approval conditions.
Why Is This Legislation Important?
This Order is important because it demonstrates how Singapore’s tax system uses targeted subsidiary legislation to support specific investment structures and cross-border arrangements. For practitioners, it provides legal certainty for the tax treatment of particular income streams—distribution income from a foreign-listed REIT and dividend/interest income from foreign property-holding entities—when received by named Singapore vehicles.
From a compliance and risk perspective, the most significant feature is the conditionality tied to the letter of approval dated 11 June 2020. In many exemption regimes, the exemption is not purely automatic; it depends on meeting conditions that may include structural requirements, documentation, reporting obligations, or other safeguards. Failure to satisfy those conditions can lead to the exemption being denied or withdrawn, potentially resulting in tax assessments, penalties, or interest.
Practically, this Order should be used in conjunction with the relevant transaction documents and tax computations. Advisers should verify that:
- the income in question is indeed received in Singapore (and properly characterised as distribution/dividend/interest);
- the payer/source entity matches the named foreign counterparties;
- the income is received on or after 3 November 2020 (and that the timing aligns with payment dates and accounting treatment); and
- the conditions in the approval letter are satisfied and evidenced.
Finally, the Order’s reliance on section 13(12) of the Income Tax Act 1947 underscores that exemptions of this kind are part of a broader statutory framework. Practitioners should therefore consider whether any related guidance, administrative practice, or subsequent amendments to the underlying Act affect how the exemption is interpreted and applied.
Related Legislation
- Income Tax Act 1947 (in particular, section 13(12))
- Income Tax Act 1947 (general provisions on chargeability to tax and exemptions)
Source Documents
This article provides an overview of the Income Tax (CapitaLand Commercial Trust, etc. — Section 13(12) Exemption) Order 2022 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.