Statute Details
- Title: Income Tax (Hebsteel Global Holding Pte. Ltd. — Section 13(12) Exemption) Order 2024
- Act Code: ITA1947-S217-2024
- Legislative Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act 1947
- Authorising Provision: Section 13(12) of the Income Tax Act 1947
- Order Number / Citation: No. S 217
- SL Number: SL 217/2024
- Date Made: 14 March 2024
- Commencement Date: Not stated in the extract (practitioners should confirm in the official publication)
- Status: Current version as at 27 Mar 2026
- Key Operative Provisions: Section 1 (Citation); Section 2 (Exemption)
What Is This Legislation About?
The Income Tax (Hebsteel Global Holding Pte. Ltd. — Section 13(12) Exemption) Order 2024 is a targeted tax exemption order made under the Income Tax Act 1947. In plain terms, it grants a specific exemption from Singapore income tax for certain dividend income received in Singapore by Hebsteel Global Holding Pte. Ltd. (“Hebsteel Global”).
The exemption is not general. It is confined to a defined time period and a defined source of dividends. The dividends must be received by Hebsteel Global in Singapore during the period from 18 January 2018 to 22 July 2019 (both dates inclusive) and must originate from dividends derived from the profits of specified companies within the Duferco group.
Finally, the exemption is conditional. Even where the dividend income falls within the described period and corporate chain, the order states that the exemption is subject to conditions specified in a letter from the Ministry of Finance dated 26 October 2023 and addressed to CLA Global TS Tax Services Pte. Ltd. This makes the order a “conditional exemption” instrument: the legal entitlement depends not only on the text of the order but also on the referenced conditions.
What Are the Key Provisions?
Section 1 (Citation) is straightforward: it identifies the instrument as the “Income Tax (Hebsteel Global Holding Pte. Ltd. — Section 13(12) Exemption) Order 2024”. This is standard drafting and does not create substantive tax consequences.
Section 2 (Exemption) is the core provision. Under Section 2(1), the order exempts from tax certain dividend income received in Singapore by Hebsteel Global. The exemption applies only if all of the following elements are satisfied:
(a) Recipient: The recipient must be Hebsteel Global Holding Pte. Ltd., a company incorporated in Singapore.
(b) Nature of income: The income must be dividend income received in Singapore.
(c) Timing: The dividends must be received during the period 18 January 2018 to 22 July 2019 (inclusive).
(d) Immediate source: The dividends must be received from Duferco International Trading Holding S.A., a company incorporated in Luxembourg.
(e) Profit derivation / underlying companies: The dividends must be “derived from the profits of” any of the following companies (each specified by name and jurisdiction):
- Duferco S.A. (Switzerland)
- Duferco Deutschland GmbH (Germany)
- Duferco Do Brasil Distribucao Ltda (Brazil)
In practical terms, the order is concerned with the character and provenance of the dividend. It is not enough that Hebsteel Global received dividends from Duferco International Trading Holding S.A.; the dividends must be traceable to profits of the specified underlying companies. This kind of drafting is common where tax authorities seek to ensure that the exemption is limited to dividends that reflect particular underlying economic activity or tax treatment.
Section 2(2) (Conditions) introduces an important compliance and documentation dimension. The exemption in Section 2(1) is subject to the conditions specified in the letter from the Ministry of Finance dated 26 October 2023 and addressed to CLA Global TS Tax Services Pte. Ltd.
This means that the exemption is not purely automatic upon meeting the factual criteria in Section 2(1). Practitioners should treat the referenced letter as integral to the legal analysis. If the conditions include requirements such as reporting, documentation, corporate restructuring constraints, or anti-avoidance safeguards, failure to satisfy them could jeopardise the exemption. Because the extract does not reproduce the letter’s contents, lawyers should obtain and review the letter (or confirm its terms with the relevant tax authority or the client’s tax advisors) before relying on the exemption.
Enacting / making details: The order was made on 14 March 2024 by the Second Permanent Secretary, Ministry of Finance, Singapore. The enacting formula confirms it is made “in exercise of the powers conferred by section 13(12) of the Income Tax Act 1947.” This is relevant for statutory interpretation: it signals that the exemption is an authorised ministerial instrument under the Act, rather than a standalone tax rule.
How Is This Legislation Structured?
This subsidiary legislation is extremely concise. It contains:
- Section 1 (Citation): the short title of the order.
- Section 2 (Exemption): the substantive exemption provision, with two subsections:
- Section 2(1): defines the scope of the exempt dividend income by recipient, timing, payer/source, and underlying profit derivation.
- Section 2(2): makes the exemption conditional on requirements in a specified Ministry of Finance letter.
There are no additional parts, schedules, or definitions in the extract. For practitioners, this means the legal work is largely interpretive and factual: confirming whether the dividend income fits the narrow description and whether the conditions in the referenced letter are satisfied.
Who Does This Legislation Apply To?
The order applies specifically to Hebsteel Global Holding Pte. Ltd. It is a company incorporated in Singapore and is the only named recipient of the exempt dividend income. While other group companies are mentioned (Duferco entities in Switzerland, Germany, Luxembourg, and Brazil), the exemption is drafted as a benefit for Hebsteel Global’s dividend income received in Singapore.
Accordingly, the practical scope is limited: it is not a general exemption for all Singapore companies receiving dividends from the Duferco group. It is a company-specific and transaction-specific exemption tied to the defined period (18 January 2018 to 22 July 2019) and the defined corporate chain (dividends from Duferco International Trading Holding S.A. derived from profits of the specified underlying companies).
In addition, the order’s effectiveness depends on compliance with the conditions in the Ministry of Finance letter dated 26 October 2023. Therefore, even if the dividend income falls within the described parameters, the exemption may not be available unless the conditions are met.
Why Is This Legislation Important?
This order is important because it provides a legal basis to treat certain dividend income as exempt from Singapore tax. For tax practitioners advising on historical dividend flows, group reorganisations, or tax positions taken in returns, such an exemption can materially affect tax liability, potential assessments, and the risk profile of past filings.
From a compliance standpoint, the order illustrates how Singapore tax exemptions under the Income Tax Act can be implemented through ministerial orders that are narrow in scope. The requirement that the dividends be derived from profits of specified companies, and the inclusion of a condition-referencing mechanism (the 26 October 2023 letter), means that practitioners must focus on:
- Tracing and characterisation: ensuring the dividend income is properly linked to the underlying profit sources listed in the order.
- Timing: confirming the dividends were received within the specified date range.
- Documentation: obtaining evidence of the dividend payment dates, corporate chain, and profit derivation.
- Condition compliance: reviewing and satisfying the conditions in the referenced Ministry of Finance letter.
Finally, the order’s reliance on section 13(12) of the Income Tax Act 1947 underscores that exemptions may be granted where the Minister is satisfied that statutory criteria are met. For lawyers, this is a reminder that exemption orders should be read alongside the authorising provision and any related administrative guidance or timelines. Where a client’s tax position depends on such an exemption, counsel should confirm the correct version of the order (the legislation platform indicates a timeline and “current version as at 27 Mar 2026”) and ensure that no amendments or superseding instruments affect the analysis.
Related Legislation
- Income Tax Act 1947 (including section 13(12), the authorising provision for this exemption order)
- Income Tax Act 1947 (general framework for Singapore taxation of income, including dividends and exemption mechanisms)
- Legislation Timeline (for confirming the correct version of SL 217/2024 as at the relevant date)
Source Documents
This article provides an overview of the Income Tax (Hebsteel Global Holding Pte. Ltd. — Section 13(12) Exemption) Order 2024 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.