Statute Details
- Title: Income Tax (Exemption of Foreign Income) (No. 5) Order 2015
- Act Code: ITA1947-S360-2015
- Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Enacting Power: Section 13(12) of the Income Tax Act
- Enacting Date / Made: 27 May 2015
- Commencement: Not stated in the extract; exemptions apply to specified receipt dates “on or after” the relevant dates
- Legislative Instrument Number: SL 360/2015
- Key Provisions (as extracted): Sections 1 to 7 (citation and specific exemptions for named companies and specified foreign-sourced income)
- Status: Current version as at 27 Mar 2026 (per the legislation page)
What Is This Legislation About?
The Income Tax (Exemption of Foreign Income) (No. 5) Order 2015 (“the Order”) is a Singapore tax instrument that grants targeted exemptions from Singapore income tax on certain foreign-sourced income received in Singapore by specific corporate taxpayers. In practical terms, it addresses a narrow but important question: when a Singapore company receives particular types of income (such as dividends, interest, or distributions) from foreign entities, can Singapore tax that receipt? For the companies named in this Order, the answer is “no”, but only for the specified income streams and subject to conditions.
The Order is made under section 13(12) of the Income Tax Act (Chapter 134). That provision empowers the Minister for Finance to grant exemptions from tax for foreign income in circumstances set out by the Minister. This Order is one of a series (“No. 5”) that implements exemptions for particular arrangements and taxpayers, typically where Singapore’s tax treatment is being aligned with administrative policy, treaty/relief considerations, or structuring of cross-border investments.
From a practitioner’s perspective, the Order is best understood as a set of bespoke tax reliefs. Each exemption is tied to (i) the recipient company, (ii) the payer company (foreign source), (iii) the type of income (dividends, interest, or Tokumei-Kumiai distributions), and (iv) the relevant date(s) from which the exemption applies. The exemptions are also expressly conditional on the terms and conditions in letters of approval issued to the taxpayer’s tax agent.
What Are the Key Provisions?
Section 1 (Citation) provides the short title: the Income Tax (Exemption of Foreign Income) (No. 5) Order 2015. While this is standard drafting, it is relevant for legal referencing in filings, correspondence, and submissions to the Inland Revenue Authority of Singapore (IRAS).
Sections 2 to 6 (Company-specific exemptions) grant exemptions to named companies for specified foreign income received in Singapore. The structure is consistent across these provisions: sub-section (1) grants the exemption; sub-section (2) makes the exemption conditional on the terms and conditions in a particular letter of approval addressed to the taxpayer’s tax agent.
Section 2: Tata Chemicals International Pte Ltd—exemption from tax on dividends received in Singapore on 11 January 2013 from Gusiute Holdings (UK) Limited (a UK-incorporated company). The exemption is conditional on the terms and conditions in a letter of approval dated 14 August 2013 addressed to Shanker Iyer Consultants Pte Ltd (tax agent).
Sections 3 to 5: Parkway Life Japan2 Pte Ltd, Parkway Life Japan3 Pte Ltd, Parkway Life Japan4 Pte Ltd—each grants exemption from tax on Tokumei-Kumiai distributions received in Singapore on or after specified dates from specified Japanese counterparties. Specifically:
- Section 3: Tokumei-Kumiai distributions received on or after 28 April 2014 from Godo Kaisha Tenshi 1 and Godo Kaisha Tenshi 2 (Japan). Conditional on a letter of approval dated 29 May 2014 addressed to Parkway Trust Management Limited.
- Section 4: Tokumei-Kumiai distributions received on or after 2 August 2013 from Godo Kaisha Healthcare 5 (Japan). Conditional on a letter of approval dated 11 October 2013 addressed to Parkway Trust Management Limited.
- Section 5: Tokumei-Kumiai distributions received on or after 18 October 2013 from Godo Kaisha Samurai 7 and Godo Kaisha Samurai 8 (Japan). Conditional on a letter of approval dated 7 January 2014 addressed to Parkway Trust Management Limited.
Section 6: Mercuria Asia Group Holdings (Pte) Ltd—exemption from tax on dividends received in Singapore on or after 29 November 2013 from Mercuria Resources Labuan Ltd (incorporated in Labuan, Malaysia). Conditional on a letter of approval dated 15 August 2014 addressed to Ernst & Young Solutions LLP (tax agent).
Section 7 (Exemptions for Keppel DC Real Estate Investment Trust, etc.) is broader and reflects a more complex investment structure. It grants exemptions to multiple entities associated with the Keppel DC Real Estate Investment Trust group. The exemption covers specified dividends and interest (and in some cases dividends only or interest only) received in Singapore on or after 10 February 2014 from various foreign companies incorporated in Guernsey, the British Virgin Islands, Malaysia, Ireland, and the Netherlands. The provision is drafted in a “matrix” style, listing each foreign payer and the corresponding income type.
Key elements of Section 7 include:
- Keppel DC Real Estate Investment Trust (as the main trust) receives exemption for:
- dividends and interest from Securus Guernsey 1 Limited and Securus Guernsey 2 Limited (Guernsey);
- dividends from Boxtel Investments Limited (British Virgin Islands); and
- dividends from Basis Bay Capital Management Sdn Bhd (Malaysia).
- Securus C100 Pte Ltd—exemption for dividends and interest received from Citadel 100 Datacentres Limited (Republic of Ireland).
- Securus Netherlands 1 Pte Ltd—exemption for dividends received from Securus Netherlands B.V. (Netherlands).
- Securus Netherlands 2 Pte Ltd—exemption for interest received from Securus Almere B.V. (Netherlands).
- Securus GVP Pte Ltd—exemption for dividends and interest received from Greenwich View Place Limited (Guernsey).
Finally, Section 7(6) makes the exemptions in sub-sections (1) to (5) conditional on the terms and conditions in a letter of approval dated 25 November 2014 addressed to KPMG Services Pte Ltd (tax agent of Keppel DC Real Estate Investment Trust). This conditionality is legally significant: even where the income and counterparties match the Order, the exemption can be undermined if the approval conditions are not satisfied.
How Is This Legislation Structured?
The Order is structured as a short, numbered set of provisions rather than a multi-part statute. It contains:
- Section 1: citation (short title);
- Sections 2 to 6: individual exemptions for named companies, each with a grant of exemption and a conditionality clause tied to a letter of approval;
- Section 7: a consolidated exemption provision for a group of related entities, with multiple sub-items specifying foreign payers and income types; and
- Final administrative details: the “Made on” date and signatory information (Permanent Secretary (Finance) (Performance), Ministry of Finance).
Who Does This Legislation Apply To?
The Order applies only to the specific Singapore taxpayers named in the provisions: Tata Chemicals International Pte Ltd, Parkway Life Japan2 Pte Ltd, Parkway Life Japan3 Pte Ltd, Parkway Life Japan4 Pte Ltd, Mercuria Asia Group Holdings (Pte) Ltd, and the entities listed under Keppel DC Real Estate Investment Trust, etc. (including Securus C100 Pte Ltd, Securus Netherlands 1 Pte Ltd, Securus Netherlands 2 Pte Ltd, and Securus GVP Pte Ltd).
It does not operate as a general exemption for all Singapore companies receiving foreign dividends or foreign distributions. Instead, it is a targeted relief instrument. For each named taxpayer, the exemption applies only to the specified foreign payer(s), the specified type of income, and the specified receipt date(s) (or “on or after” dates). Additionally, the exemption is conditional on compliance with the terms and conditions in the relevant letter of approval issued to the taxpayer’s tax agent.
Why Is This Legislation Important?
Although the Order is short, it can be highly consequential for tax computation and compliance. For the named companies, it directly affects whether Singapore tax is chargeable on particular foreign income receipts. In practice, this can influence dividend distribution planning, cash repatriation strategies, and the structuring of cross-border investment vehicles.
From an enforcement and risk perspective, the conditionality clause is the critical legal hook. Because each exemption is “subject to” the terms and conditions in a letter of approval, practitioners must treat those letters as integral to the legal basis for the exemption. If a taxpayer fails to meet conditions—whether relating to documentation, beneficial ownership, the nature of the income, or other administrative/tax policy requirements—the exemption may not be available, potentially leading to tax assessments, penalties, or disputes with IRAS.
Finally, the Order illustrates how Singapore uses subsidiary legislation to implement bespoke tax outcomes under the Income Tax Act. For lawyers advising on similar arrangements, it provides a template for understanding how exemptions are granted: they are typically narrow, counterparty- and income-specific, time-bound, and tied to approval conditions. This is particularly relevant when advising on group restructurings, changes in tax agents, or changes in the underlying investment arrangements that may affect whether the exemption remains applicable.
Related Legislation
- Income Tax Act (Chapter 134) — in particular, section 13(12) (the authorising provision for the Minister’s power to grant exemptions for foreign income).
- Income Tax Act — legislation timeline (for verifying the correct version and any subsequent amendments affecting the exemption framework).
Source Documents
This article provides an overview of the Income Tax (Exemption of Foreign Income) (No. 5) Order 2015 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.