Statute Details
- Title: Income Tax (Exemption of Foreign Income) Order 2014
- Act Code: ITA1947-S192-2014
- Legislative Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Authorising Provision: Powers conferred by section 13(12) of the Income Tax Act
- Enacting Formula: Made by the Minister for Finance
- Order Citation: “Income Tax (Exemption of Foreign Income) Order 2014”
- SL Number: S 192/2014
- Date Made: 5 March 2014
- Commencement: Not expressly stated in the extract; exemptions apply to interest received in Singapore on or after the specified dates in the relevant provisions
- Status (per provided extract): Current version as at 27 Mar 2026
- Key Provisions: Section 1 (Citation); section 2 (Exemption for India Roads Trust Investments Pte Ltd); section 3 (Exemption for IL&FS Wind Power Investment Pte Ltd)
What Is This Legislation About?
The Income Tax (Exemption of Foreign Income) Order 2014 is a targeted tax exemption instrument made under the Income Tax Act. In practical terms, it grants specific Singapore companies an exemption from Singapore income tax on certain foreign-sourced payments—specifically, interest received in Singapore—that arise from defined underlying Indian investments.
Unlike broad-based tax regimes that apply to categories of taxpayers, this Order is company-specific. It identifies two Singapore investment holding entities and lists the particular Indian companies from which the interest must be received. The exemption is also expressly conditional: it is subject to the terms and conditions set out in approval letters issued to each company’s tax agent.
For practitioners, the key takeaway is that this Order operates as a legal mechanism to implement tax incentives (or reliefs) for cross-border investment structures. It does so by carving out an exemption from the general tax charge on interest, but only for the defined counterparties and only for interest received on or after the relevant cut-off dates.
What Are the Key Provisions?
1. Citation (Section 1)
Section 1 provides the short title of the Order: it may be cited as the “Income Tax (Exemption of Foreign Income) Order 2014”. This is standard drafting, but it also confirms the instrument’s identity for referencing in submissions, tax computations, and correspondence with the Inland Revenue Authority of Singapore (IRAS).
2. Exemption for India Roads Trust Investments Pte Ltd (Section 2)
Section 2 grants India Roads Trust Investments Pte Ltd an exemption from tax on the interest received in Singapore on or after 18 November 2013. The exemption applies only in respect of interest received from the following companies located in India:
- L&T Vadodara‑Bharuch Tollway Limited;
- L&T Panipat Elevated Corridor Limited;
- L&T Krishnagiri Thopur Toll Road Limited;
- L&T Western Andhra Tollways Limited;
- L&T Interstate Road Corridor Limited;
- L&T Krishnagiri Walajahpet Tollway Limited.
Conditionality: Subsection 2(2) makes the exemption subject to the terms and conditions specified in a letter of approval dated 17 February 2014 addressed to the company’s tax agent. This means the exemption is not purely automatic; compliance with the approval conditions is legally relevant. For legal practice, this typically requires careful document control: ensuring the approval letter is obtained, reviewed, and that any ongoing obligations (for example, reporting, structuring constraints, or conditions precedent/ongoing conditions) are met.
3. Exemption for IL&FS Wind Power Investment Pte Ltd (Section 3)
Section 3 grants IL&FS Wind Power Investment Pte Ltd an exemption from tax on the interest received in Singapore on or after 7 March 2013. The exemption applies only for interest received from the following Indian companies:
- Wind Urja India Ltd;
- IL&FS Wind Power Ltd;
- Tadas Wind Energy Ltd;
- Lalpur Wind Energy Pvt Ltd;
- Khandke Wind Energy Private Ltd.
Conditionality: Subsection 3(2) similarly provides that the exemption is subject to the terms and conditions specified in a letter of approval dated 3 July 2013 addressed to the company’s tax agent. As with Section 2, the approval letter is central to determining the scope and enforceability of the exemption in practice.
Practical legal effect
Both Section 2 and Section 3 follow the same structure: (i) identify the Singapore taxpayer; (ii) specify the type of income (interest received in Singapore); (iii) specify the relevant commencement date for the exemption; (iv) list the specific Indian payors; and (v) incorporate by reference the terms and conditions in the relevant approval letter. This drafting approach is important for advising clients because it creates clear boundaries around what payments qualify and what conditions must be satisfied.
How Is This Legislation Structured?
The Order is short and consists of a citation provision and two substantive exemption provisions. Structurally:
- Section 1 sets out the citation.
- Section 2 contains the exemption for India Roads Trust Investments Pte Ltd, including the list of Indian interest payors and the approval-letter condition.
- Section 3 contains the exemption for IL&FS Wind Power Investment Pte Ltd, including the list of Indian interest payors and the approval-letter condition.
There are no additional Parts or complex schedules in the extract provided. The operative content is concentrated in the lists of qualifying payors and the incorporation of approval-letter conditions.
Who Does This Legislation Apply To?
This Order applies to two specific Singapore companies: (1) India Roads Trust Investments Pte Ltd and (2) IL&FS Wind Power Investment Pte Ltd. It does not create a general exemption for all taxpayers receiving foreign interest. A practitioner should therefore treat it as a bespoke relief granted to named entities.
Within each named company, the exemption applies only to interest received in Singapore from the named Indian companies and only for interest received on or after the specified dates (18 November 2013 for India Roads; 7 March 2013 for IL&FS Wind Power). Even if a company receives interest from an Indian entity not listed in the Order, that interest would fall outside the exemption as drafted. Additionally, the exemption is subject to the terms and conditions in the relevant approval letters, meaning that compliance by the taxpayer is a legal prerequisite to relying on the exemption.
Why Is This Legislation Important?
From a tax advisory perspective, this Order is important because it demonstrates how Singapore implements exemptions for cross-border investment income through subsidiary legislation under the Income Tax Act. For affected taxpayers, it can materially reduce Singapore tax exposure on qualifying interest receipts, improving the after-tax economics of the underlying investment structures.
For practitioners, the conditional incorporation of approval letters is a critical compliance and risk-management point. Even where the Order lists the relevant payors and dates, the exemption remains “subject to” the approval-letter terms and conditions. In disputes or audits, IRAS may examine whether the taxpayer satisfied those conditions. Accordingly, counsel should ensure that the approval letters dated 17 February 2014 and 3 July 2013 are obtained, reviewed, and mapped to the taxpayer’s ongoing operations and reporting obligations.
Finally, the Order’s specificity—company names, payor lists, and cut-off dates—means that careful factual alignment is required. Practitioners should verify: (i) the identity of the Singapore recipient; (ii) the nature of the payment (interest); (iii) the timing of receipt in Singapore; and (iv) whether the interest is paid by one of the listed Indian companies. Where corporate restructuring occurs (for example, changes in payor identity, refinancing, or assignment of debt), legal advice should consider whether the payment continues to be “from” the listed companies or whether the exemption could be challenged.
Related Legislation
- Income Tax Act (Chapter 134) — in particular, section 13(12), which provides the Minister for Finance with the power to make orders granting exemptions.
Source Documents
This article provides an overview of the Income Tax (Exemption of Foreign Income) Order 2014 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.