Statute Details
- Title: Income Tax (Exemption of Foreign Income) (No. 6) Order 2017
- Act Code: ITA1947-S395-2017
- Legislative Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Power Exercised: Minister for Finance under section 13(12) of the Income Tax Act
- Order Date / Made On: 14 July 2017
- Commencement: Not expressly stated in the extract; the exemption applies to dividends received “on or after 14 June 2017”
- Key Provisions (from extract):
- Section 1 (Citation): Provides the short title of the Order
- Section 2 (Exemption): Grants a targeted exemption for specified foreign dividends, subject to conditions
- Regulatory Reference: SL 395/2017 (as shown in the timeline)
- Status: Current version as at 27 Mar 2026 (per the legislation portal display)
What Is This Legislation About?
The Income Tax (Exemption of Foreign Income) (No. 6) Order 2017 is a targeted tax exemption instrument made under the Income Tax Act. In plain terms, it allows a specific Singapore company to receive certain foreign-sourced dividends without paying Singapore income tax on those dividends, provided the statutory conditions are met.
Unlike broad-based tax relief schemes that apply to categories of taxpayers, this Order is narrow and fact-specific. It identifies the Singapore recipient company and the foreign payer company, and it specifies the relevant type of income (dividends) and the relevant time period (dividends received on or after a particular date). This kind of subsidiary legislation is commonly used in Singapore to implement approvals granted under the Income Tax Act for exemptions of foreign income.
Practically, the Order matters for cross-border corporate structuring and for tax planning around dividend flows. For lawyers advising on group reorganisations, investment structures, or dividend repatriation, the Order provides a concrete example of how Singapore can exempt foreign dividends when the legal and administrative requirements are satisfied.
What Are the Key Provisions?
1. Citation (Section 1)
Section 1 simply states the short title: “Income Tax (Exemption of Foreign Income) (No. 6) Order 2017.” While this is standard drafting, it is important for practitioners when citing the instrument in submissions, correspondence, or internal tax memos.
2. The exemption for specified dividends (Section 2(1))
The operative provision is Section 2. Under Section 2(1), 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 provision contains several legally significant elements:
- Recipient is specified: The exemption is limited to dividends received by the named Singapore company. Other companies cannot rely on the Order unless they are the named recipient (or unless a separate order/approval applies).
- Payer is specified: The foreign company paying the dividends is also named. The exemption is tied to dividends from that particular UAE entity.
- Income type is specified: The exemption applies to dividends. It does not, on the face of the extract, extend to other foreign income types such as interest, royalties, or service income.
- Timing is specified: The exemption applies to dividends received “on or after 14 June 2017.” This means dividends received before that date would not fall within the exemption under this Order.
3. Conditions linked to a letter of approval (Section 2(2))
Section 2(2) makes the exemption conditional. 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 one of the most important features for legal practice. The Order itself does not reproduce the conditions; instead, it incorporates them by reference to an external administrative document (the letter of approval). For practitioners, this means:
- Compliance is not optional: The exemption only applies if the conditions in the specified paragraph are satisfied.
- Evidence and documentation matter: Lawyers should ensure that the client can obtain and review the letter of approval (and specifically paragraph 4) and maintain records demonstrating compliance.
- Risk of denial or withdrawal: If conditions are not met, the exemption may not apply, potentially leading to tax assessments, penalties, or the need for corrective filings.
4. Making and signature (administrative validity)
The extract also shows that the Order was made on 14 July 2017 by the Permanent Secretary, Ministry of Finance, Singapore (TAN CHING YEE). While this is not a “substantive” tax rule, it is relevant for confirming the instrument’s formal validity and the proper exercise of the statutory power.
How Is This Legislation Structured?
This Order is structured in a very concise format typical of subsidiary tax exemption orders. Based on the extract, it contains:
- Section 1 (Citation): The short title.
- Section 2 (Exemption): The substantive exemption provision, including both the scope of the exemption (Section 2(1)) and the conditionality (Section 2(2)).
There are no “Parts” or multiple chapters in the extract, and the Order appears to be limited to the essential legal mechanics needed to grant the exemption. The incorporation by reference to an approval letter is a key structural feature: the Order relies on the administrative approval process under the Income Tax Act rather than embedding all conditions within the subsidiary legislation itself.
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 UAE. The exemption is therefore not general; it is recipient- and payer-specific.
From a practitioner’s perspective, the scope is best understood as a narrow legal “permission” for a particular dividend stream. Other Singapore companies receiving dividends from other foreign entities cannot rely on this Order. If a client’s facts differ—different recipient company, different foreign payer, different income type, or different timing—then the exemption would require a separate approval and potentially a different subsidiary legislation instrument.
Why Is This Legislation Important?
Although the Order is short, it is significant because it demonstrates how Singapore implements exemptions of foreign income through a combination of statutory authority and administrative approvals. For lawyers, the key value lies in understanding the compliance architecture: the exemption is granted by subsidiary legislation, but the operative conditions are found in a separate approval letter.
1. Practical tax impact on dividend repatriation
Dividends are a common method of repatriating profits from foreign subsidiaries or investee companies. By exempting specified foreign dividends from Singapore tax, the Order can materially improve after-tax returns and simplify cash flow planning. For corporate groups, this can affect decisions on whether to distribute profits as dividends versus other forms of cross-border payments.
2. Enforcement and compliance risk
The conditional nature of the exemption is central. Because Section 2(2) ties the exemption to conditions in a specific paragraph of an approval letter, failure to meet those conditions can jeopardise the tax treatment. In practice, lawyers should treat the approval letter as part of the “legal file” for the exemption—reviewing what is required, how compliance is evidenced, and what happens if circumstances change (for example, changes in shareholding, corporate restructuring, or dividend policy).
3. Guidance for advising on similar exemptions
Even if a practitioner is not dealing with New Toyo Lamination (M) Pte Ltd, the Order provides a template for how such exemptions are drafted in Singapore: identify the recipient and payer, specify the income type and timing, and incorporate conditions by reference to an approval letter. This can help lawyers quickly assess whether a client’s situation is likely to qualify, what documents to request, and how to structure advice and submissions to Inland Revenue authorities.
Related Legislation
- Income Tax Act (Chapter 134): In particular, section 13(12) (the enabling provision referenced in the Order)
- Income Tax Act – Timeline / Legislation history: The legislation portal indicates a “Timeline” and an “Authorising Act” reference for context
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.