Statute Details
- Title: Income Tax (Exemption of Foreign Income) (No. 4) Order 2015
- Act Code: ITA1947-S248-2015
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Authorising Power: Section 13(12) of the Income Tax Act
- Citation: “Income Tax (Exemption of Foreign Income) (No. 4) Order 2015”
- Enacting Formula / Maker: Made by the Minister for Finance
- Date Made: 21 April 2015
- Key Provision: Section 2 (Exemption)
- Commencement: The exemption applies to dividends received in Singapore on or after 31 December 2013 (as specified in the Order)
- Status: Current version as at 27 March 2026 (per the legislation extract)
What Is This Legislation About?
The Income Tax (Exemption of Foreign Income) (No. 4) Order 2015 is a targeted tax exemption instrument made under the Income Tax Act. In plain terms, it grants a specific Singapore company an exemption from Singapore income tax on certain dividends that have a foreign source and a particular payment chain.
Unlike broad tax regimes that apply generally to all taxpayers, this Order is “company-specific” and “transaction-specific” in the sense that it names CommScope Solutions Singapore Pte Ltd and identifies the dividends by reference to (i) where the dividends are received (in Singapore) and (ii) the corporate entities from which those dividends ultimately originate.
The Order also makes the exemption conditional. It is not an unconditional waiver: the exemption is expressly subject to the terms and conditions set out in a letter of approval dated 14 April 2015 addressed to Ernst & Young Solutions LLP (the tax agent of the company). This reflects a common Singapore approach to tax incentives and exemptions—granting relief while requiring compliance with approval conditions.
What Are the Key Provisions?
1. Citation (Section 1)
Section 1 provides the short title of the Order. This is standard legislative drafting, but it matters for practitioners because it identifies the instrument precisely for referencing in submissions, correspondence, and compliance documentation.
2. Exemption from tax on specified dividends (Section 2)
The operative provision is Section 2. Subsection (1) grants CommScope Solutions Singapore Pte Ltd an exemption from tax on dividends which are:
- (a) Received in Singapore on or after 31 December 2013 from CommScope Technologies (Hong Kong) Limited; and
- (b) Paid out of dividends received by CommScope Technologies (Hong Kong) Limited from Argus Technologies (China) Limited.
In practical terms, the Order is designed to exempt Singapore tax on dividends that flow into Singapore from a Hong Kong holding company, where those Hong Kong dividends are themselves funded by dividends received from a China entity. The wording captures a “dividend-on-dividend” structure: the Singapore company receives dividends from the Hong Kong company, and the Hong Kong company’s ability to pay those dividends depends on dividends it received from the China company.
3. Conditionality: subject to approval letter terms (Section 2(2))
Section 2(2) provides that the exemption is subject to the terms and conditions specified in a letter of approval dated 14 April 2015 addressed to Ernst & Young Solutions LLP, the tax agent of the company.
This is a critical compliance point. Even where the statutory text appears to grant an exemption, the exemption’s legal effectiveness and continued availability may depend on meeting the approval conditions. For lawyers advising the company, the approval letter is therefore not merely administrative—it is part of the legal framework governing the exemption.
4. Temporal scope and “on or after” effect
The Order specifies that the dividends must be “received in Singapore on or after 31 December 2013.” This means the exemption is intended to cover dividends received from that date onwards, even though the Order was made on 21 April 2015. Such “backward-looking” effect is common in tax administration where relief is granted for a period already in progress, but it should be handled carefully in tax computations and filing positions.
Practitioners should therefore consider whether the company claimed or intended to claim the exemption for dividends received after 31 December 2013 and before the Order was made. Where tax returns were filed without the exemption, the company may need to consider whether amendments, claims for relief, or other administrative steps are available under the Income Tax Act’s procedures (subject to time limits and the specific facts).
How Is This Legislation Structured?
This Order is extremely short and consists of:
- Section 1 (Citation): the short title.
- Section 2 (Exemption): the substantive grant of exemption and its conditions.
There are no Parts or complex schedules in the extract provided. The structure reflects the nature of subsidiary legislation used for targeted exemptions: the instrument is drafted to identify the taxpayer, the relevant income (dividends), the qualifying source and payment chain, and the conditions attached to the exemption.
Who Does This Legislation Apply To?
The exemption applies to CommScope Solutions Singapore Pte Ltd only. The Order does not describe a class of taxpayers; it names a specific entity. Accordingly, other companies cannot rely on this Order unless they are the named taxpayer and their dividends fall within the described conditions.
In addition, the exemption is limited to dividends that meet the Order’s specified criteria: dividends received in Singapore on or after 31 December 2013 from CommScope Technologies (Hong Kong) Limited, and dividends paid out of dividends received by the Hong Kong company from Argus Technologies (China) Limited. If the dividend flow differs—e.g., different intermediate entities, different sources, or dividends received outside the specified timeframe—the exemption may not apply.
Why Is This Legislation Important?
For practitioners, the importance of this Order lies in its role as a legal basis for a specific tax outcome: exemption from Singapore tax on certain foreign-sourced dividends within a defined corporate structure. While Singapore’s general approach to foreign dividends and participation income can involve multiple statutory provisions and administrative rules, this Order provides a direct exemption for the named company and specified dividend stream.
From a compliance and advisory perspective, the conditional nature of the exemption is equally significant. Section 2(2) ties the exemption to an approval letter dated 14 April 2015. Lawyers should therefore treat the approval letter as a key document in due diligence and ongoing tax governance. Failure to comply with approval conditions could jeopardise the exemption, potentially leading to tax assessments, penalties, or the need to regularise filings.
Finally, the “on or after 31 December 2013” wording makes the Order relevant to historical tax periods. Where dividends were received after that date, the company’s tax position should be reviewed to ensure consistency with the exemption and with any conditions in the approval letter. This is particularly important for advising on audit readiness, responding to tax queries, and managing the risk of retrospective adjustments.
Related Legislation
- Income Tax Act (Chapter 134) — in particular, section 13(12) (the authorising provision for making such exemption orders)
- Income Tax Act — general provisions governing the computation of income, exemptions, and administrative procedures for claims and assessments (as applicable)
- Legislation Timeline (as referenced in the legislation portal) — to confirm the correct version and effective scope
Source Documents
This article provides an overview of the Income Tax (Exemption of Foreign Income) (No. 4) Order 2015 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.