Statute Details
- Title: Income Tax (Exemption of Foreign Income) (No. 6) Order 2017
- Act Code: ITA1947-S395-2017
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Authorising Provision: Section 13(12) of the Income Tax Act
- Key Operative Provisions: Section 1 (Citation); Section 2 (Exemption)
- Enactment / Made Date: 14 July 2017
- Commencement (practical effect): Applies to dividends received in Singapore on or after 14 June 2017
- Regulatory Reference: SL 395/2017
- Status: Current version as at 27 Mar 2026 (per legislation portal)
What Is This Legislation About?
The Income Tax (Exemption of Foreign Income) (No. 6) Order 2017 is a targeted tax exemption order made under the Income Tax Act. In plain terms, it provides that certain foreign-sourced dividends received in Singapore by a specific Singapore company are exempt from Singapore income tax, provided that specified conditions are met.
Unlike broad-based tax regimes that apply to categories of taxpayers, this Order is highly specific. It identifies the Singapore recipient company and the foreign payer company, specifies the type of income (dividends), and sets a relevant time threshold (dividends received on or after 14 June 2017). The exemption is also expressly conditional: it depends on compliance with conditions set out in a letter of approval issued by the tax authority.
Practitioners should view this Order as part of Singapore’s administrative and legislative framework for granting exemptions of foreign income. It illustrates how the Minister for Finance can, by order, grant exemptions for foreign income under section 13(12) of the Income Tax Act—typically to support particular business arrangements, investment structures, or tax planning outcomes, while retaining control through approval conditions.
What Are the Key Provisions?
Section 1 (Citation) is straightforward. It states that the instrument may be cited as the “Income Tax (Exemption of Foreign Income) (No. 6) Order 2017”. While not substantive, citation provisions are important for legal certainty and for referencing the instrument in tax filings, correspondence, and advisory work.
Section 2 (Exemption) contains the operative tax relief. Sub-paragraph (1) provides the core exemption: dividends received in Singapore by New Toyo Lamination (M) Pte Ltd (a company incorporated in Singapore) are exempt from tax if those dividends are received on or after 14 June 2017 from New Toyo Aluminium Gulf Paper Packaging FZE (a company incorporated in the United Arab Emirates).
This means the exemption is not a general exemption for all foreign dividends. It is limited to:
- the recipient (New Toyo Lamination (M) Pte Ltd);
- the source payer (New Toyo Aluminium Gulf Paper Packaging FZE);
- the income type (dividends); and
- the timing (dividends received in Singapore on or after 14 June 2017).
Section 2(2) (Conditionality) is equally important. The exemption is subject to the conditions specified in paragraph 4 of the letter of approval dated 14 June 2017 addressed to Ernst & Young Solutions LLP, the tax agent of New Toyo Lamination (M) Pte Ltd.
From a practitioner’s perspective, this conditionality creates a compliance and evidentiary focus. Even if the dividends fall within the specified recipient/payer and timing parameters, the exemption may not apply if the conditions in the approval letter are not satisfied. The Order itself does not reproduce those conditions; instead, it incorporates them by reference. This is a common legislative technique in Singapore tax exemptions: the statutory instrument grants the exemption, while the approval letter sets out the detailed requirements.
Accordingly, legal and tax teams should treat the approval letter as part of the “effective legal framework” for the exemption. In practice, advisers typically confirm: (i) what the conditions are; (ii) whether they are ongoing or one-off; (iii) what documentation is required; (iv) what constitutes breach; and (v) whether there are reporting or notification obligations. Because the Order points specifically to paragraph 4 of the letter, that paragraph is likely the decisive compliance clause.
Finally, the Order includes a making clause (signed by the Permanent Secretary, Ministry of Finance) and a bracketed reference to the legislative file. While not substantive, these elements confirm the formal authority and administrative provenance of the exemption.
How Is This Legislation Structured?
This Order is structurally concise. It consists of:
- Enacting formula: states that the Minister for Finance makes the Order under the powers conferred by 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.
Notably, there are no “Parts” or multiple sections addressing procedural matters. The legislative design is “minimalist”: it grants a specific exemption and incorporates conditions by reference to an external approval letter. For practitioners, this means the key legal work is not only reading the Order, but also obtaining and analysing the referenced letter of approval (dated 14 June 2017) and ensuring compliance with the specified paragraph 4 conditions.
Who Does This Legislation Apply To?
The Order applies to New Toyo Lamination (M) Pte Ltd, a company incorporated in Singapore, in respect of dividends received in Singapore from New Toyo Aluminium Gulf Paper Packaging FZE in the United Arab Emirates. The exemption is therefore recipient-specific and payer-specific.
In practical terms, other Singapore companies receiving dividends from other foreign entities are not covered by this Order. Even if a different company receives dividends from the same foreign payer, the exemption would not automatically apply unless the statutory instrument expressly includes that recipient. Conversely, if New Toyo Lamination (M) Pte Ltd receives dividends from a different foreign payer, those dividends would fall outside the scope of the exemption as drafted.
Because the exemption is also conditional, the company must ensure that it satisfies the conditions in the approval letter. The Order’s incorporation-by-reference approach means that compliance is not merely a matter of meeting the factual description of the dividend; it also requires meeting the approval conditions.
Why Is This Legislation Important?
This Order is important because it demonstrates how Singapore grants tax relief for foreign income through a combination of statutory authority and case-specific approval conditions. For practitioners advising on cross-border corporate structures, dividend flows, and tax planning, the Order provides a concrete example of how exemptions can be tailored to particular transactions and entities.
From a compliance standpoint, the conditional nature of the exemption is critical. The exemption is not unconditional; it is “subject to” conditions in a specific paragraph of an approval letter. This has several practical implications:
- Due diligence: advisers must obtain the approval letter and read the relevant paragraph(s) closely.
- Ongoing monitoring: if conditions are ongoing (e.g., relating to shareholding, beneficial ownership, or corporate governance), the company must monitor compliance over time.
- Documentation and audit readiness: the company should maintain evidence demonstrating satisfaction of the conditions.
- Risk management: if conditions are breached, the exemption could be denied or withdrawn, potentially leading to tax exposure, penalties, or interest.
For tax computation and filing, the Order affects how dividends are treated for Singapore tax purposes. Where the exemption applies, dividends that would otherwise be taxable may be excluded from taxable income. However, because the Order is narrow and conditional, practitioners should ensure the dividend receipts meet all statutory criteria and that the approval conditions are satisfied before treating the income as exempt.
Finally, this Order underscores the role of the tax agent and the administrative process. The approval letter is addressed to Ernst & Young Solutions LLP as tax agent, reflecting that the exemption was likely granted following an application process. In advising clients, practitioners should consider whether similar exemptions require applications, what information must be provided, and how approval conditions are typically framed.
Related Legislation
- Income Tax Act (Chapter 134) — in particular, section 13(12) (the enabling provision for this exemption order)
- Income Tax Act timeline / legislation history — for versioning and contextual amendments (as referenced in the legislation portal)
Source Documents
This article provides an overview of the Income Tax (Exemption of Foreign Income) (No. 6) Order 2017 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.