Statute Details
- Title: Income Tax (CapitaLand Commercial Trust, etc. — Section 13(12) Exemption) Order 2022
- Act Code: ITA1947-S613-2022
- Legislative Type: Subsidiary Legislation (SL)
- Enacting Authority: Minister for Finance (powers under section 13(12) of the Income Tax Act 1947)
- SL Citation: S 613/2022
- Date Made: 23 July 2022
- Commencement (practically relevant): Exemption applies to specified income received in Singapore on or after 3 November 2020
- Status: Current version as at 27 Mar 2026
- Key Provisions: Section 1 (Citation); Section 2 (Exemption)
What Is This Legislation About?
The Income Tax (CapitaLand Commercial Trust, etc. — Section 13(12) Exemption) Order 2022 is a targeted tax exemption order made under Singapore’s Income Tax Act 1947. In plain terms, it grants an exemption from Singapore income tax for certain categories of investment income that are received in Singapore by specific Singapore entities, arising from cross-border arrangements involving real estate investment trusts (REITs) and property-related companies.
The Order is not a general tax reform. Instead, it is a narrow, transaction-specific instrument. It identifies particular recipients (trustee and corporate vehicles) and particular counterparties (REIT and property companies incorporated in Malaysia, Luxembourg, and the Netherlands). It also specifies the type of income (distribution income, dividend income, and interest income) and the relevant timing (income received on or after 3 November 2020). This structure is typical of Singapore’s use of section-based exemptions where the Minister grants relief for qualifying arrangements subject to approval conditions.
For practitioners, the key takeaway is that the Order operates as a legal “switch” turning off Singapore tax for the specified income streams, but only for the named recipients and only for the specified sources and income types. It also makes clear that the exemption is conditional—subject to requirements set out in a letter of approval dated 11 June 2020.
What Are the Key Provisions?
Section 1 (Citation) is straightforward. It provides the formal name of the Order: the Income Tax (CapitaLand Commercial Trust, etc. — Section 13(12) Exemption) Order 2022. This is mainly relevant for referencing and compliance documentation.
Section 2 (Exemption) is the operative provision. It sets out four principal elements: (i) who receives the income, (ii) what type of income is exempt, (iii) from whom the income is derived (the source counterparties), and (iv) the time period and conditions.
First exemption (Section 2(1)) — distribution income to the trustee of CapitaLand Commercial Trust. 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 exempt income is distribution income received from Sentral REIT (formerly known as MRCB‑Quill REIT), a REIT listed in Malaysia. The exemption applies to distributions received on or after 3 November 2020.
Second exemption (Section 2(2)) — dividend and interest income to CCT Galaxy One Pte. Ltd. The Order also 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 (incorporated in Luxembourg). Again, the exemption applies to income received on or after 3 November 2020.
Third exemption (Section 2(3)) — dividend and interest income to CCT Mercury One Pte. Ltd. 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 is the same: income received on or after 3 November 2020.
Conditionality (Section 2(4)) — subject to approval conditions. The exemptions in sub-paragraphs (1) to (3) are not unconditional. They are “subject to the conditions specified in the letter of approval dated 11 June 2020 addressed to EY Corporate Advisors Pte. Ltd.”. This is a crucial compliance point. Even where the income appears to fall within the categories and counterparties described, the exemption can be undermined if the conditions in the approval letter are not satisfied. Practitioners should therefore treat the approval letter as an essential part of the exemption’s legal architecture, even though it is not reproduced in the Order itself.
Practical implication of the “on or after” date. The Order’s application to income received on or after 3 November 2020 means it can cover income that accrued before the Order was made (23 July 2022), provided it was received within the specified timeframe. This retroactive effect (in the sense of applying to earlier receipts) is common in tax exemption orders but should be handled carefully in accounting, tax computations, and documentation.
How Is This Legislation Structured?
The Order is structured in a simple, two-part format typical of exemption orders:
Section 1 provides the citation (formal title).
Section 2 contains the substantive exemption. It is subdivided into:
- Section 2(1): exemption for distribution income received in Singapore by the trustee of CapitaLand Commercial Trust from Sentral REIT (Malaysia).
- Section 2(2): exemption for dividend and interest income received in Singapore by CCT Galaxy One Pte. Ltd. from Gallileo Property S.a.r.l (Luxembourg).
- Section 2(3): exemption for dividend 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. (Netherlands).
- Section 2(4): a conditions clause tying the exemptions to the letter of approval dated 11 June 2020.
There are no additional parts or schedules in the extract provided. The operative content is therefore concentrated entirely in Section 2.
Who Does This Legislation Apply To?
The Order applies to specific Singapore entities receiving specified types of income in Singapore. It does not create a general class of taxpayers eligible for exemption. Instead, it names the recipients and their capacities:
- HSBC Institutional Trust Services (Singapore) Limited, acting as trustee of CapitaLand Commercial Trust.
- CCT Galaxy One Pte. Ltd.
- CCT Mercury One Pte. Ltd.
It also applies only to income derived from specific foreign counterparties and only for the specified income types:
- Distribution income from Sentral REIT (Malaysia).
- Dividend and interest income from Gallileo Property S.a.r.l (Luxembourg).
- Dividend and interest income from MAC Property Company B.V. and MAC Car Park Company B.V. (Netherlands).
Finally, the exemption is conditional on compliance with the conditions in the letter of approval dated 11 June 2020. Accordingly, even where the named recipient receives the named income from the named source, eligibility depends on meeting the approval conditions.
Why Is This Legislation Important?
This Order is important because it provides certainty and relief for a particular cross-border investment structure involving CapitaLand Commercial Trust and associated entities. By exempting specified income streams from Singapore tax, it can materially affect the net returns of the investment and the overall tax efficiency of the structure.
From a legal and compliance perspective, the conditionality clause in Section 2(4) is the most significant risk point. Practitioners should not treat the exemption as automatic merely because the income appears to match the description. The exemption is expressly “subject to the conditions specified” in an approval letter. If those conditions relate to corporate arrangements, reporting obligations, documentation, or other compliance steps, failure to satisfy them could expose the taxpayer to tax assessments, penalties, or denial of the exemption.
In practice, this Order would typically be used by tax advisers and corporate counsel to support tax positions in filings and computations. It also provides a basis for internal governance: ensuring that the relevant entities maintain records demonstrating (i) the nature of the income (distribution vs dividend vs interest), (ii) the source counterparty, (iii) that the income was received in Singapore, (iv) that the receipt date falls on or after 3 November 2020, and (v) that the approval conditions have been met.
Finally, the Order illustrates a broader feature of Singapore tax administration: targeted exemptions under the Income Tax Act that are granted by subsidiary legislation, often tied to specific transactions and approvals. For practitioners, understanding this mechanism helps in advising clients on how to structure transactions and how to obtain and preserve tax relief.
Related Legislation
- Income Tax Act 1947 — in particular section 13(12) (the enabling provision for this exemption order)
- Income Tax Act 1947 (general framework for income tax computation, exemptions, and administration)
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.