Statute Details
- Title: Income Tax (Exemption of Foreign Income) (No. 6) Order 2017
- Act Code: ITA1947-S395-2017
- Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Enacting power: Section 13(12) of the Income Tax Act
- Order date / made on: 14 July 2017
- Commencement: Applies to dividends received “on or after 14 June 2017” (as stated in the exemption provision)
- Key provisions (from extract):
- Citation (s 1): Provides the short title of the Order
- Exemption (s 2): Grants a targeted exemption for specified foreign dividends received by a specified Singapore company, subject to conditions
- Legislative instrument number: SL 395/2017
- 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 2017 (“the Order”) is a targeted tax relief instrument made under the Income Tax Act. In plain terms, it allows a specific Singapore company to receive certain foreign dividends without paying Singapore income tax on those dividends, provided that specified conditions are met.
Unlike broad-based exemptions that apply to categories of taxpayers or transactions, this Order is highly specific. It identifies (i) the Singapore recipient company, (ii) the foreign payer company, and (iii) the relevant timing of dividend receipts. The Order therefore functions as a “case-by-case” or “approval-based” exemption mechanism within Singapore’s income tax framework.
Practically, the Order addresses a common cross-border tax issue: whether dividends paid by an overseas company to a Singapore shareholder should be taxed in Singapore. The exemption reduces the tax burden on the recipient for the specified dividends, but it is not unconditional—its operation is expressly tied to conditions set out in an approval letter.
What Are the Key Provisions?
1. Citation (Section 1)
Section 1 is a standard provision that states the short title of the instrument: “Income Tax (Exemption of Foreign Income) (No. 6) Order 2017”. While it does not affect substantive tax outcomes, it is important for legal referencing, filing, and citation in correspondence with tax authorities or in advisory opinions.
2. The exemption for specified foreign dividends (Section 2)
The core of the Order is Section 2, which grants an exemption from Singapore tax for dividends received in Singapore by a particular Singapore company from a particular foreign company.
Section 2(1): What is exempt?
Section 2(1) provides that dividends received in Singapore by New Toyo Lamination (M) Pte Ltd (a company incorporated in Singapore) are exempt from tax if they 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 limited to:
- Recipient: New Toyo Lamination (M) Pte Ltd
- Payer: New Toyo Aluminium Gulf Paper Packaging FZE
- Type of income: dividends
- Tax treatment: exempt from tax in Singapore
- Timing: dividends received on or after 14 June 2017
Legal significance of the “on or after” date
The “on or after 14 June 2017” wording is crucial. It indicates that dividends received before that date are not covered by the exemption. For practitioners, this requires careful review of dividend declaration dates, payment dates, and the date the dividend is “received in Singapore” (which may be relevant for determining when the income is treated as received for tax purposes).
Section 2(2): Conditions attached to the exemption
Section 2(2) states that the exemption in Section 2(1) 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.
This is a key feature of the Order: the exemption is not merely granted by the Order itself; it is conditional upon compliance with specific requirements set out in a separate approval letter. In practice, this means that:
- the approval letter is likely central to determining whether the exemption applies in full; and
- non-compliance with the conditions could jeopardise the exemption or lead to tax adjustments.
Why the approval letter matters
Because the Order incorporates conditions by reference, lawyers advising the taxpayer must obtain and review the approval letter (and any related correspondence) to identify the exact obligations. The extract does not reproduce the conditions, but it clearly points to paragraph 4 of that letter. Therefore, the approval letter is effectively part of the legal framework governing the exemption, even though it is not reproduced in the Order text.
3. Making and signature
The Order was made on 14 July 2017 and signed by TAN CHING YEE, Permanent Secretary, Ministry of Finance, Singapore. While signature formalities do not usually affect substantive interpretation, they confirm the instrument’s validity and the authority under which it was issued.
How Is This Legislation Structured?
The Order is structured in a simple, short format typical of targeted tax exemption instruments. Based on the extract, it contains:
- Section 1 (Citation): the short title of the Order.
- Section 2 (Exemption): the substantive provision granting an exemption for specified foreign dividends, including the condition that the exemption is subject to conditions in a referenced approval letter.
There are no parts or complex schedules shown in the extract. The operative legal effect is therefore concentrated in Section 2, with the approval letter acting as the controlling source for the 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, a company incorporated in the United Arab Emirates.
It is important to emphasise that the exemption is not expressed as a general rule for all Singapore companies receiving foreign dividends. Instead, it is a bespoke exemption tied to named entities. As a result, other taxpayers cannot assume the same treatment unless they have their own exemption order or approval under the relevant provisions of the Income Tax Act.
Further, the exemption is conditional. Even for the named recipient, the exemption operates only to the extent that the conditions in the approval letter (paragraph 4) are satisfied. Accordingly, the practical “applicability” of the Order depends not only on who receives the dividends and from whom, but also on compliance with the approval conditions.
Why Is This Legislation Important?
This Order is significant because it illustrates how Singapore’s tax system can provide targeted relief for cross-border investment income. For the affected taxpayer, the exemption can materially reduce Singapore tax exposure on foreign dividends—potentially improving after-tax returns and supporting group financing and investment structures.
From a legal and advisory perspective, the Order also highlights a common compliance theme in Singapore tax practice: exemptions granted by subsidiary legislation may be conditional on separate approval letters. Lawyers must therefore treat the approval letter as a critical document. The incorporation-by-reference approach means that the “real” compliance checklist may not be visible in the Order text itself.
In enforcement and dispute contexts, conditional exemptions can become focal points. If the tax authority later questions whether the conditions were met, the taxpayer may face reassessment, penalties, or the need to demonstrate compliance. Therefore, practitioners should ensure that:
- the approval letter dated 14 June 2017 is obtained and reviewed in full;
- paragraph 4 conditions are mapped to actual corporate and transaction facts (e.g., dividend payment mechanics, documentation, and any ongoing obligations);
- records are maintained to show that dividends were received on or after 14 June 2017; and
- any subsequent changes that could affect compliance are monitored.
Finally, the Order’s existence underscores the importance of checking the correct version and timeline of subsidiary legislation. The platform indicates the Order is “current version as at 27 Mar 2026” and references a timeline entry dated 17 Jul 2017 (SL 395/2017). Practitioners should confirm the instrument number and effective period when advising on historical dividend receipts.
Related Legislation
- Income Tax Act (Chapter 134) — in particular, section 13(12) (the authorising provision for making such exemption orders)
- Income Tax Act timeline / legislative history — for context on how exemption orders are issued and updated
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.