Statute Details
- Title: Income Tax (Exemption of Foreign Income) (No. 3) Order 2013
- Act Code: ITA1947-S101-2013
- Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Enacting power: Section 13(12) of the Income Tax Act
- Citation / Short title: “Income Tax (Exemption of Foreign Income) (No. 3) Order 2013”
- Key provisions (from extract): Section 1 (Citation); Section 2 (Exemption)
- Instrument date: Made on 20 February 2013
- Version status: Current version as at 27 March 2026 (per the platform display)
What Is This Legislation About?
The Income Tax (Exemption of Foreign Income) (No. 3) Order 2013 is a targeted tax exemption instrument issued under Singapore’s Income Tax Act. In practical terms, it grants a specific company—GE Pacific Pte Ltd—an exemption from Singapore tax on certain dividends it receives from specified foreign subsidiaries or related entities.
Singapore generally taxes income accruing in or derived from Singapore. However, the Income Tax Act contains mechanisms that allow the Minister for Finance to grant exemptions in defined circumstances. This Order is one such mechanism: it provides relief from tax on dividends received in Singapore from particular foreign companies, subject to conditions set out in an approval letter.
Because the Order is “(No. 3)” and names a particular taxpayer and counterparties, it is best understood as a bespoke administrative-tax instrument rather than a broad, general rule for all taxpayers. For practitioners, the key legal work is to identify (i) the exact dividends covered, (ii) the relevant foreign payers, (iii) the timing of the covered dividend payments, and (iv) the conditions imposed by the approval letter referenced in the Order.
What Are the Key Provisions?
1. Citation (Section 1)
Section 1 provides the short citation for the instrument: “Income Tax (Exemption of Foreign Income) (No. 3) Order 2013”. While this is standard drafting, it matters for legal referencing in submissions, correspondence, and compliance documentation.
2. The exemption granted (Section 2(1))
Section 2 is the operative provision. Under Section 2(1), GE Pacific Pte Ltd is granted an exemption from tax on dividends received in Singapore from the following foreign companies:
- GE Pacific (Mauritius) Ltd (Mauritius): dividends received on 15 May 2008, 9 October 2008, 13 October 2009, and on or after 14 February 2013.
- New China Control Systems Ltd (British Virgin Islands): dividends received on or after 14 February 2013.
- Hydril India JV LLC (United States): dividends received on or after 14 February 2013.
From a practitioner’s perspective, the exemption is both counterparty-specific and time-specific. The Order does not provide a blanket exemption for all foreign dividends; it is limited to dividends received from the named foreign entities and, for each entity, to the specified dates or date ranges.
3. Conditionality: approval letter terms (Section 2(2))
Section 2(2) states that the exemption under Section 2(1) is subject to the terms and conditions specified in the letter of approval dated 14 February 2013 addressed to GE Pacific Pte Ltd.
This is a critical legal feature. Even where the Order grants an exemption, the taxpayer’s entitlement may depend on compliance with conditions in the approval letter. These conditions can include (depending on the approval’s content) requirements relating to corporate structure, shareholding, dividend declarations, documentation, reporting, or anti-avoidance safeguards. Because the extract does not reproduce the letter’s terms, lawyers should treat the approval letter as an essential part of the legal framework governing the exemption.
4. Administrative and legal effect
The Order is made by the Minister for Finance (through the Permanent Secretary signing on behalf of the Ministry of Finance) “in exercise of the powers conferred by section 13(12)” of the Income Tax Act. This indicates that the exemption is an exercise of statutory discretion. Consequently, the exemption’s scope and enforceability are anchored in the statutory power and the specific conditions attached.
In practice, the Order functions as the legal instrument that authorises the tax exemption, while the approval letter supplies the compliance conditions. Together, they define the taxpayer’s rights and obligations.
How Is This Legislation Structured?
This subsidiary legislation is structured in a minimal, order-like format. Based on the extract, it contains:
- Enacting formula (preamble): identifies the statutory power under section 13(12) of the Income Tax Act.
- Section 1 (Citation): provides the short title.
- Section 2 (Exemption): sets out the exemption and its conditions.
- Making clause: indicates the date the Order was made (20 February 2013) and the signatory (Permanent Secretary (Finance) (Performance), Ministry of Finance).
Notably, the Order does not include “Parts” or detailed schedules in the extract. Instead, it uses a concise operative section with sub-paragraphs specifying the foreign dividend sources and the relevant dates.
Who Does This Legislation Apply To?
The Order applies to GE Pacific Pte Ltd—and only to that named taxpayer. Unlike general tax rules that apply to all taxpayers meeting certain criteria, this Order is a company-specific exemption.
Its effect is also limited to dividends received in Singapore from the named foreign companies (GE Pacific (Mauritius) Ltd, New China Control Systems Ltd, and Hydril India JV LLC) and only for the specified dividend payment dates or date ranges. Therefore, even if GE Pacific Pte Ltd receives other foreign dividends from different entities, those dividends would not automatically fall within the exemption unless covered by another instrument or by a different exemption regime.
Why Is This Legislation Important?
For tax practitioners and corporate counsel, the importance of the Income Tax (Exemption of Foreign Income) (No. 3) Order 2013 lies in its direct impact on the tax treatment of cross-border corporate income flows. Dividends received by a Singapore company from foreign subsidiaries can be subject to Singapore tax depending on the applicable rules and exemptions. This Order provides certainty—at least for the specified counterparties and dates—that the dividends will be exempt from tax in Singapore, subject to the approval letter conditions.
From an enforcement and compliance standpoint, the conditionality in Section 2(2) is the most practical risk point. If the taxpayer fails to meet conditions in the approval letter dated 14 February 2013, the exemption could be challenged or become unavailable. Lawyers should therefore ensure that the client’s documentation and corporate actions align with the approval’s terms—particularly around dividend declarations, shareholding continuity, and any reporting or record-keeping requirements.
Finally, this Order illustrates how Singapore’s tax system uses subsidiary legislation to implement targeted relief. Even though the instrument is short, it is legally binding and should be treated as part of the client’s tax governance framework. In disputes or audits, the Order and the approval letter are likely to be central documents for establishing the basis of the exemption.
Related Legislation
- Income Tax Act (Chapter 134) — particularly section 13(12) (the authorising provision for this Order)
- Income Tax Act timeline / legislative history (as referenced in the platform navigation)
Source Documents
This article provides an overview of the Income Tax (Exemption of Foreign Income) (No. 3) Order 2013 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.