Statute Details
- Title: Income Tax (Exemption of Foreign Income) (No. 3) Order 2007
- Act Code: ITA1947-S368-2007
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Authorising Provision: Section 13(12) of the Income Tax Act
- Enacting Formula: Minister for Finance makes the Order in exercise of powers under section 13(12)
- Citation: “Income Tax (Exemption of Foreign Income) (No. 3) Order 2007”
- Key Provisions: Section 1 (Citation); Section 2 (Exemption)
- Date Made: 6 July 2007
- Commencement Date: Not stated in the extract (commencement typically follows the making/notification unless otherwise provided)
- Status: Current version as at 27 Mar 2026 (per the legislation portal)
- Legislative Instrument Number: SL 368/2007
What Is This Legislation About?
The Income Tax (Exemption of Foreign Income) (No. 3) Order 2007 is a targeted tax exemption instrument made under Singapore’s Income Tax Act. In plain terms, it grants a specific company an exemption from Singapore tax on certain foreign-sourced income—specifically, dividends received in Singapore from specified overseas subsidiaries.
Unlike broad-based tax reforms that apply to categories of taxpayers, this Order is narrow and company-specific. It does not create a general rule for all businesses earning foreign dividends. Instead, it provides relief to United International Securities Trading (Pte) Ltd for dividends it receives in Singapore from its subsidiaries located in Indonesia, the Philippines, Australia, and Hong Kong.
The Order’s legal mechanism is important: it operates as a subsidiary legislation made by the Minister for Finance, using a statutory power in the Income Tax Act. That means the exemption is not merely an administrative concession; it is a formal legal instrument that can be relied upon, subject to the conditions stated in the relevant approval letter.
What Are the Key Provisions?
Section 1 (Citation) simply provides the short title. This is standard drafting: it tells practitioners how to refer to the instrument in legal documents, correspondence, and submissions.
Section 2 (Exemption) is the operative provision. It states that United International Securities Trading (Pte) Ltd is granted an exemption from tax on the dividends received in Singapore from its subsidiaries in:
- Indonesia: P.T. Astra International Tbk
- Philippines: Ayala Corporation
- Australia: Zinifex Ltd
- Hong Kong: Hang Lung Properties Ltd
The exemption is expressly subject to the terms and conditions specified in the letter of approval dated 5 January 2007 addressed to the company. This is a critical feature for legal practice. The Order itself does not enumerate the conditions; it incorporates them by reference. Accordingly, the approval letter becomes central to determining the scope of the exemption and whether it remains available for particular dividend payments.
From a practitioner’s perspective, the phrase “subject to the terms and conditions” typically means that the exemption may be contingent on compliance with requirements such as (depending on the approval letter) documentation, eligibility criteria, corporate structure, holding periods, reporting obligations, or other anti-abuse safeguards. Even though the extract does not reproduce those conditions, the legal effect is that failure to satisfy them could jeopardise the exemption for dividends that would otherwise fall within the described categories.
Enacting power and legal character: The Order is made “in exercise of the powers conferred by section 13(12) of the Income Tax Act.” This matters because it anchors the exemption in a specific statutory delegation. It also signals that the Minister’s discretion is exercised through a formal instrument, and that the exemption’s validity and interpretation will be tied to the statutory framework of section 13(12) and the incorporated approval terms.
How Is This Legislation Structured?
This Order is extremely concise. It contains:
- Section 1: Citation (how the Order is named).
- Section 2: Exemption (the substantive relief granted to the named company, for specified foreign dividends, subject to conditions in an approval letter).
There are no Parts, schedules, or detailed definitions in the extract. The structure reflects the nature of the instrument: it is a bespoke exemption order rather than a comprehensive code. The “structure” for practical purposes is therefore: identify the taxpayer, identify the foreign dividend sources, and verify compliance with the approval letter conditions.
Who Does This Legislation Apply To?
The exemption applies to United International Securities Trading (Pte) Ltd only. It is not drafted as a general exemption for all taxpayers meeting certain criteria. The named company is the sole beneficiary.
In addition, the exemption is limited to dividends received in Singapore from the specified overseas subsidiaries. Even if the company receives dividends from other foreign entities, or dividends from the same countries but different companies, those may fall outside the scope of the Order unless they are covered by the approval letter’s terms or otherwise supported by a different exemption instrument.
Why Is This Legislation Important?
For tax practitioners, the importance of this Order lies in its practical effect on Singapore tax outcomes for foreign dividend flows. Dividends received in Singapore can be subject to Singapore tax depending on the applicable rules and whether an exemption applies. By granting a specific exemption, the Order can materially reduce or eliminate tax liability on the relevant dividends—subject to compliance with the approval conditions.
Second, the Order illustrates how Singapore uses targeted subsidiary legislation to implement tax relief for particular corporate arrangements. This is a common feature of Singapore’s tax system: while the Income Tax Act sets general principles, the Minister may grant exemptions through orders where the statutory conditions and policy considerations are satisfied.
Third, the incorporation of the 5 January 2007 letter of approval means that legal work cannot stop at reading the Order text. Practitioners should treat the approval letter as a controlling document for eligibility and ongoing compliance. In disputes or audits, the key questions often become: (i) whether the dividend payments were within the categories described; (ii) whether the underlying corporate relationships match the named subsidiaries; and (iii) whether the company complied with the approval conditions at the time the dividends were received.
Finally, because the Order is “current version as at 27 Mar 2026,” practitioners should still confirm whether there have been amendments, revocations, or superseding instruments affecting the exemption. The extract indicates the Order remains in force in the current consolidated view, but the approval letter’s terms may also have time limits or compliance requirements that affect whether the exemption is available for dividends received in later years.
Related Legislation
- Income Tax Act (Chapter 134) — in particular, section 13(12) (the authorising provision for this exemption order)
- Income Tax Act timeline / legislation history — for confirming the relevant version and any amendments affecting section 13(12)
Source Documents
This article provides an overview of the Income Tax (Exemption of Foreign Income) (No. 3) Order 2007 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.