Statute Details
- Title: Income Tax (Exemption of Foreign Income) (No. 6) Order 2007
- Act Code: ITA1947-S453-2007
- Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Authorising Provision: Section 13(12) of the Income Tax Act
- Enacting Formula (key power): Minister for Finance makes the Order in exercise of powers under section 13(12)
- Commencement: Not stated in the extract; the Order is dated and made on 24 August 2007
- Citation: “This Order may be cited as the Income Tax (Exemption of Foreign Income) (No. 6) Order 2007.” (section 1)
- Key Provisions: Section 1 (Citation); Section 2 (Exemption)
- Legislative Instrument Number: SL 453/2007
- Date Made: 24 August 2007
- Current Version Status: Current version as at 27 Mar 2026 (per the platform display)
What Is This Legislation About?
The Income Tax (Exemption of Foreign Income) (No. 6) Order 2007 is a Singapore tax exemption order made under the Income Tax Act. In practical terms, it provides a targeted relief from Singapore tax for a specific corporate taxpayer in relation to dividends received in Singapore from a foreign subsidiary.
Unlike broad-based tax regimes that apply to classes of taxpayers, this Order is a “No. 6” exemption order that grants exemption to a named company: Texchem-Pack Holdings (S) Ltd. The exemption relates to dividends received in Singapore from its subsidiary in Malaysia, Texchem-Pack (M) Bhd. The Order is therefore best understood as a mechanism to implement a specific approval arrangement—subject to conditions set out in a separate approval letter.
For practitioners, the key takeaway is that this is not a general rule you can apply by formula. Instead, it is a legal instrument that confers exemption only where its conditions are satisfied, and it expressly ties the exemption to the terms and conditions in an approval letter dated 25 July 2007 addressed to the company’s tax agent.
What Are the Key Provisions?
Section 1 (Citation) is straightforward. It confirms the formal name of the instrument: the “Income Tax (Exemption of Foreign Income) (No. 6) Order 2007.” While this may seem purely administrative, citation provisions matter for legal certainty—particularly when advising on whether a particular exemption order is the correct legal basis for a tax position.
Section 2 (Exemption) is the operative provision. It states that Texchem-Pack Holdings (S) Ltd is granted exemption from tax on the dividends received in Singapore from its subsidiary in Malaysia, Texchem-Pack (M) Bhd. The exemption is not unconditional. It is granted “subject to the terms and conditions specified in the letter of approval dated 25th July 2007 addressed to the tax agent” of Texchem-Pack Holdings (S) Ltd.
This structure is legally significant. The Order itself confers the exemption, but it does so by reference to an external document (the approval letter). In practice, that means a lawyer advising on compliance must treat the approval letter as part of the conditions precedent to the exemption. If the company fails to meet any condition in that letter, the exemption could be challenged or withdrawn, depending on how the approval is framed and how the tax administration enforces compliance.
Making and authority: The Order is made by the Minister for Finance (with the signature shown as TEO MING KIAN, Permanent Secretary, Ministry of Finance). The enacting formula indicates the legal basis is section 13(12) of the Income Tax Act. For practitioners, this matters because it anchors the exemption within the statutory discretion/power framework of the Income Tax Act. It also helps when arguing about the scope of the exemption—i.e., that the exemption is valid only to the extent permitted by the authorising provision.
How Is This Legislation Structured?
This Order is extremely concise. It contains:
(1) Section 1: Citation.
(2) Section 2: The exemption granted to a named taxpayer, specifying the type of income (dividends), the jurisdictional link (dividends received in Singapore from a Malaysian subsidiary), and the condition that the exemption is subject to terms in a specified approval letter.
There are no “Parts” or detailed schedules in the extract. The operative content is therefore concentrated in section 2, with the approval letter functioning as the practical compliance framework.
Who Does This Legislation Apply To?
The exemption applies to Texchem-Pack Holdings (S) Ltd only. The Order is not drafted as a general rule for all companies receiving foreign dividends. It is a company-specific exemption order, identifying both the recipient (the Singapore holding company) and the source of the dividends (its Malaysian subsidiary).
Accordingly, the scope is limited to dividends that fall within the described relationship and flow: dividends received in Singapore from Texchem-Pack (M) Bhd. Any dividends from other foreign subsidiaries, or dividends received by other group companies, would not be covered by this Order unless another exemption instrument applies.
Why Is This Legislation Important?
Although the Order is short, it is important because it illustrates how Singapore’s tax system can provide targeted relief for foreign-sourced income through subsidiary legislation. For corporate tax practitioners, such orders can be central to determining whether withholding tax, exemption from tax, or other tax treatment applies to cross-border dividends.
From a compliance perspective, the Order’s reference to an approval letter is the most practical issue. Lawyers should not treat the exemption as automatic merely because the company is named in the Order. Instead, the exemption is conditional on meeting the terms and conditions in the letter of approval dated 25 July 2007. This creates a document-management and evidentiary task: advisers should obtain and review the approval letter, map its conditions to the company’s dividend and corporate facts, and ensure ongoing compliance (for example, with any conditions relating to shareholding, corporate structure, timing, reporting, or other administrative requirements).
From an enforcement and risk perspective, conditional exemptions can be revisited if conditions are not met. Even where the Order is “current version,” the practical question for tax filing is whether the company’s circumstances and actions align with the approval terms. If there is uncertainty about the approval letter’s content, or if the letter cannot be located, the exemption position may be vulnerable. In disputes, the tax authority may require proof that the conditions were satisfied at the relevant time.
Related Legislation
- Income Tax Act (Chapter 134) — in particular, section 13(12) (the authorising provision for this exemption order)
- Income Tax (Exemption of Foreign Income) (No. 6) Order 2007 — SL 453/2007 (this instrument)
- Income Tax legislation timeline / subsidiary legislation framework — for confirming the correct version and any amendments (as referenced by the platform “timeline” feature)
Source Documents
This article provides an overview of the Income Tax (Exemption of Foreign Income) (No. 6) Order 2007 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.