Statute Details
- Title: Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (No. 3) Notification 2013
- Act Code: ITA1947-S607-2013
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134), section 13(4)
- Enacting Formula (key power): Made by the Minister for Finance in exercise of powers under section 13(4) of the Income Tax Act
- Citation: Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (No. 3) Notification 2013
- Commencement: Deemed to have come into operation on 23 December 2012
- Key Provisions: Section 1 (Citation and commencement); Section 2 (Exemption)
- Status: Current version as at 27 March 2026
- Publication/SL Reference: SL 607/2013
- Made Date: 12 September 2013
What Is This Legislation About?
The Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (No. 3) Notification 2013 is a targeted tax exemption notification made under the Income Tax Act. In plain terms, it provides that certain interest payments made by a Singapore company will be exempt from tax for specified periods, where the payments are connected to an economic and technological development arrangement.
Although the notification is titled broadly (“Exemption of Interest and Other Payments for Economic and Technological Development”), the operative content in this specific instrument is narrow and fact-specific. It grants an exemption for interest payable by BOC Aviation Pte. Ltd. to Arcu Aircraft Leasing Limited under specified aircraft leasing arrangements. The exemption applies only to interest “payable” under the relevant head leases and only during the defined date windows.
From a practitioner’s perspective, this notification illustrates how Singapore’s tax framework can be used to support particular commercial and strategic transactions—here, aircraft leasing—by carving out a tax exemption for interest flows that would otherwise be taxable. It is not a general exemption regime; it is a bespoke approval instrument tied to particular parties, aircraft, and periods.
What Are the Key Provisions?
Section 1 (Citation and commencement) sets the formal identity of the notification and its effective date. The notification may be cited as the “Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (No. 3) Notification 2013.” Importantly, it is deemed to have come into operation on 23 December 2012. This “deemed” commencement is legally significant: it means the exemption is intended to apply retroactively to periods starting before the notification was made.
Section 2 (Exemption) is the core operative provision. Subsection (1) provides that there shall be exempt from tax the interest payable by BOC Aviation Pte. Ltd. to Arcu Aircraft Leasing Limited under two specified aircraft head leases dated 31 December 2009. The exemption is limited to interest relating to two Airbus A320-200 aircraft, identified by their manufacturer’s serial numbers: 4066 and 4077.
The exemption is also constrained by precise time periods for each aircraft. For the aircraft with manufacturer’s serial number 4066, the exemption covers the period from 23 December 2012 to 22 March 2013 (both dates inclusive). For the aircraft with manufacturer’s serial number 4077, the exemption covers 5 May 2013 to 21 May 2013 (both dates inclusive). Outside these windows, the notification does not grant exemption, and the general tax treatment under the Income Tax Act would typically apply.
Section 2(2) (Condition precedent / subject to approval terms) adds a critical compliance layer. The exemption under subsection (1) is subject to the terms and conditions specified in the letter of approval dated 3 July 2013 addressed to BOC Aviation Pte. Ltd. This means that even where the payment and period fall within the notification’s text, the exemption may still be contingent on meeting conditions in the separate approval letter. For legal practice, this is a key point: the notification should not be read in isolation; the approval letter is part of the legal architecture governing entitlement to the exemption.
How Is This Legislation Structured?
This notification is structured in a simple, two-section format typical of many tax exemption notifications made under the Income Tax Act. It contains:
Section 1: Citation and commencement (including the deemed effective date).
Section 2: The substantive exemption provision, with subsection (1) specifying the exempt interest, parties, aircraft, and date ranges, and subsection (2) making the exemption conditional on the terms in the approval letter dated 3 July 2013.
There are no additional parts, schedules, or detailed procedural rules within the text provided. The operative legal effect is therefore concentrated in the exemption clause and its conditional reference to the approval letter.
Who Does This Legislation Apply To?
The notification applies to the specific transaction and parties identified in Section 2. The interest must be payable by BOC Aviation Pte. Ltd. to Arcu Aircraft Leasing Limited under the specified Aircraft Head Lease dated 31 December 2009 for the two identified aircraft. In other words, the exemption is not available to other taxpayers or other counterparties unless they fall within the exact description in the notification.
Practically, the “who” question also includes the compliance holder: Section 2(2) refers to a letter of approval dated 3 July 2013 addressed to BOC Aviation Pte. Ltd. This suggests that entitlement and ongoing compliance obligations likely sit with BOC Aviation as the Singapore payer and the recipient of the approval. If conditions in the approval letter are not met, the exemption could be denied or withdrawn, with potential tax consequences for the payer and/or withholding tax treatment depending on how the underlying Income Tax Act provisions operate.
Why Is This Legislation Important?
This notification is important because it demonstrates how Singapore implements targeted tax incentives to support specific economic and technological development objectives—here, through the aircraft leasing sector. Interest payments are often economically significant in cross-border financing structures. By exempting certain interest during defined periods, the notification can reduce the tax burden on the relevant interest flow, improving the economics of the transaction.
From a legal and compliance standpoint, the notification’s value lies in its precision and conditionality. The exemption is limited to:
- specific parties (BOC Aviation Pte. Ltd. and Arcu Aircraft Leasing Limited);
- specific underlying contracts (Aircraft Head Lease dated 31 December 2009);
- specific assets (Airbus A320-200 aircraft with serial numbers 4066 and 4077);
- specific time windows; and
- specific approval terms (letter of approval dated 3 July 2013).
This means practitioners must carefully verify that the interest being claimed as exempt is correctly mapped to the aircraft, the lease, and the relevant period. It also means that documentation—particularly the approval letter and evidence of compliance with its terms—will be central in any tax review, audit, or dispute.
Finally, the deemed commencement date (23 December 2012) is a reminder that retroactive tax effects can occur. Where a notification is deemed to operate from an earlier date, taxpayers may need to consider whether they have already accounted for tax for the relevant period and whether any adjustment, refund, or re-filing is required under the Income Tax Act and administrative practice.
Related Legislation
- Income Tax Act (Chapter 134) — in particular, section 13(4) (the authorising provision for making such exemption notifications)
- Income Tax Act — general provisions governing the tax treatment of interest and any withholding or exemption mechanisms (as applicable)
- Legislation Timeline / SL 607/2013 — for version control and confirmation of the current text as at 27 March 2026
Source Documents
This article provides an overview of the Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (No. 3) Notification 2013 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.