Statute Details
- Title: Income Tax (Exemption of Foreign Income) (No. 4) Order 2009
- Act Code: ITA1947-S364-2009
- Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Authorising Provision: Section 13(12) of the Income Tax Act
- Enacting Formula (summary): Made by the Minister for Finance in exercise of powers under section 13(12)
- Legislation Number: SL 364/2009
- Date Made: 3 August 2009
- Commencement Date: Not stated in the extract (order is dated and made on 3 August 2009)
- Key Provisions: Section 1 (Citation); Section 2 (Exemption)
- Current Version Status: Current version as at 27 Mar 2026 (per the legislation portal)
What Is This Legislation About?
The Income Tax (Exemption of Foreign Income) (No. 4) Order 2009 is a targeted tax exemption instrument issued under Singapore’s Income Tax Act. In plain terms, it grants a specific company an exemption from Singapore income tax on certain dividends it receives in Singapore from a foreign subsidiary.
Unlike broad tax regimes that apply to categories of taxpayers, this Order is narrow and fact-specific. It names Wilmar International Limited and identifies the foreign subsidiary from which the relevant dividends are received: PPB Oil Palms Berhad (Malaysia). The exemption is not unconditional; it is granted subject to terms and conditions set out in a letter of approval dated 27 July 2009.
Practically, the Order addresses a common cross-border corporate tax issue: how Singapore taxes dividends received by a Singapore company from overseas subsidiaries. By granting an exemption in this particular case, the Minister for Finance effectively allows the taxpayer to treat the specified dividends as exempt from tax in Singapore, subject to compliance with the approval conditions.
What Are the Key Provisions?
Section 1 (Citation) provides the formal name of the instrument. This is standard legislative drafting: it tells practitioners and courts how to refer to the Order in legal documents, correspondence, and filings.
Section 2 (Exemption) is the operative provision. It states that Wilmar International Limited “is hereby granted exemption from tax on the dividends received in Singapore from its subsidiary in Malaysia, PPB Oil Palms Berhad.” The exemption therefore applies to dividends that meet two linked criteria: (1) they are received in Singapore and (2) they are paid by the specified Malaysia subsidiary.
Importantly, the exemption is conditional. Section 2 makes the exemption “subject to the terms and conditions specified in the letter of approval dated 27th July 2009.” This means that the exemption’s legal effect is not determined solely by the text of the Order. Instead, the letter of approval is integral to the exemption regime. For legal practice, this is a critical point: counsel must obtain, review, and advise on the approval letter’s conditions, because non-compliance could jeopardise the exemption or trigger tax adjustments.
The Order also includes the making clause and signature block. It records that it was “made this 3rd day of August 2009” and is signed by TEO MING KIAN, Permanent Secretary, Ministry of Finance. While this is not a substantive tax rule, it confirms the formal validity of the instrument and the authority under which it was issued.
How Is This Legislation Structured?
This Order is extremely short and consists of a minimal structure typical of subsidiary legislation that grants a specific exemption. It contains:
(1) Enacting formula — identifies the enabling power in the Income Tax Act (section 13(12)) and confirms that the Minister for Finance makes the Order.
(2) Section 1 (Citation) — provides the short title.
(3) Section 2 (Exemption) — sets out the exemption granted to a named taxpayer for specified dividends, subject to conditions in an external approval letter.
There are no Parts, schedules, or detailed definitions in the extract. The operative content is concentrated entirely in section 2, with the approval letter functioning as the principal source of conditions.
Who Does This Legislation Apply To?
The Order applies to Wilmar International Limited only. It is not a general exemption available to all taxpayers meeting certain criteria. The exemption is granted to a named company, and the dividends must be received in Singapore from the named Malaysian subsidiary, PPB Oil Palms Berhad.
Accordingly, the practical scope is limited to the corporate group and dividend flow described. Even if another Singapore company receives dividends from a Malaysian subsidiary, this Order would not automatically apply because it is not drafted as a category-based exemption. For other taxpayers, the relevant question would be whether there is a different exemption order or whether they can obtain an exemption under the same enabling provision (section 13(12) of the Income Tax Act) through an approval process.
Why Is This Legislation Important?
Although this Order is brief, it is legally significant because it affects the tax treatment of cross-border dividends—an area that can materially impact effective tax rates, dividend planning, and corporate structuring. For practitioners advising on group reorganisations, dividend policies, or repatriation of profits, the existence of a specific exemption order can be decisive.
From an enforcement and compliance perspective, the conditional nature of the exemption is the key. The Order ties the exemption to “terms and conditions” in a letter of approval dated 27 July 2009. In practice, this means that the approval letter likely contains requirements such as documentation, corporate conditions, timing, or other compliance obligations. Lawyers should treat the approval letter as part of the legal framework governing the exemption and ensure that the client can demonstrate compliance if queried by the tax authority.
Finally, the Order illustrates how Singapore uses subsidiary legislation to implement targeted tax outcomes under the Income Tax Act. The enabling power in section 13(12) allows the Minister for Finance to grant exemptions in specified circumstances. For counsel, this is a reminder that the tax system may rely on a combination of (i) the main charging provisions in the Income Tax Act and (ii) specific exemption instruments and approvals that tailor outcomes to particular taxpayers and transactions.
Related Legislation
- Income Tax Act (Chapter 134) — in particular, section 13(12) (the enabling provision for this Order)
- Income Tax Act timeline / legislation history — for verifying the applicable version and any amendments relevant to the exemption framework
Source Documents
This article provides an overview of the Income Tax (Exemption of Foreign Income) (No. 4) Order 2009 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.