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: S 217/2024
- Date Made: 14 March 2024
- Commencement: Not expressly stated in the extract (practically, the exemption applies to the specified historical period)
- Status: Current version as at 27 Mar 2026 (per the legislation portal)
- Key Operative Provision: Paragraph 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 provides that certain dividend income received in Singapore by a specific Singapore-incorporated company—Hebsteel Global Holding Pte. Ltd.—is exempt from Singapore income tax.
The exemption is not general or open-ended. It is confined to dividends received during a defined historical period (from 18 January 2018 to 22 July 2019, inclusive) and linked to dividends that are ultimately derived from the profits of specified companies within a particular corporate group structure. The order therefore operates as a “carve-out” from the normal tax treatment of dividend income, but only for the qualifying circumstances described in the text.
Practitioners should view this as an example of how Singapore’s tax law can grant bespoke relief through subsidiary legislation—typically where the Minister for Finance is satisfied that the statutory conditions for exemption under section 13(12) are met. The order also makes clear that the exemption is conditional on requirements set out in a letter from the Ministry of Finance.
What Are the Key Provisions?
Citation (Paragraph 1). Paragraph 1 simply identifies the instrument: it is 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 by itself.
Exemption for qualifying dividend income (Paragraph 2(1)). The core relief is in paragraph 2(1). The order exempts dividend income received in Singapore by Hebsteel Global Holding Pte. Ltd. during the period from 18 January 2018 to 22 July 2019 (both dates inclusive). The dividends must be received from Duferco International Trading Holding S.A., a company incorporated in Luxembourg.
However, the exemption is further limited by the “source of profits” requirement. The dividends must be “derived from the profits of” any of the following companies (each incorporated outside Singapore): (a) Duferco S.A. (Switzerland), (b) Duferco Deutschland GmbH (Germany), and (c) Duferco Do Brasil Distribucao Ltda (Brazil). This means the exemption is not merely about the immediate payer (Duferco International Trading Holding S.A.) but about the underlying profit-generating entities from which the dividends ultimately arise.
Conditions (Paragraph 2(2)). The exemption is expressly subject to the 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 is a critical practitioner point: even where the dividend income appears to fall within the temporal and corporate-entity parameters in paragraph 2(1), the exemption will not operate unless the conditions in that letter are satisfied.
Because the extract does not reproduce the letter’s contents, lawyers should treat paragraph 2(2) as a “gatekeeper” provision. In practice, the conditions may relate to documentation, compliance steps, reporting obligations, or confirmation of the dividend’s derivation from specified profits. The letter’s addressee (CLA Global TS Tax Services Pte. Ltd.) suggests that the tax services provider may have been engaged to manage the application or compliance process. For counsel, the immediate action is to obtain and review the letter (or confirm its terms through the client’s tax file) to ensure the exemption is properly claimed and supported.
Administrative and evidential implications. Although the order itself is concise, it implies that the tax treatment will depend on factual tracing of dividends and profits across entities and jurisdictions. Practitioners should anticipate that tax authorities may require evidence showing: (i) the dividend payments were received in Singapore by the specified company; (ii) the payments occurred within the stated period; (iii) the dividends were received from the specified Luxembourg payer; and (iv) the dividends were derived from the profits of the specified Swiss, German, and Brazilian companies. The conditions in the Ministry of Finance letter likely address how this tracing and documentation should be performed.
How Is This Legislation Structured?
This subsidiary legislation is structured in a straightforward, two-part format typical of exemption orders:
Part/Section 1 (Citation): identifies the order by name.
Part/Section 2 (Exemption): contains the operative tax relief. Paragraph 2(1) defines the scope of exempt dividend income by reference to: (a) recipient (Hebsteel Global Holding Pte. Ltd.), (b) nature of income (dividends), (c) location of receipt (received in Singapore), (d) time window (18 Jan 2018 to 22 Jul 2019), (e) payer (Duferco International Trading Holding S.A.), and (f) underlying profit sources (Duferco S.A., Duferco Deutschland GmbH, Duferco Do Brasil Distribucao Ltda). Paragraph 2(2) then imposes conditions tied to a specific Ministry of Finance letter dated 26 October 2023.
There are no additional parts, definitions, or procedural provisions in the extract. The order’s brevity means that the practical work for practitioners lies in interpreting and applying the scope and ensuring compliance with the referenced conditions.
Who Does This Legislation Apply To?
The exemption applies specifically to Hebsteel Global Holding Pte. Ltd., a company incorporated in Singapore. The order is not a general exemption for all Singapore companies receiving dividends; it is a bespoke relief instrument tied to one recipient and one set of dividend circumstances.
In terms of the dividend flow, the order also implicitly concerns other entities in the chain: the Luxembourg payer (Duferco International Trading Holding S.A.) and the underlying profit sources (Duferco S.A. in Switzerland, Duferco Deutschland GmbH in Germany, and Duferco Do Brasil Distribucao Ltda in Brazil). While these entities are not the direct beneficiaries of the exemption, their profits are relevant because the exemption depends on whether the dividends are derived from those profits.
Finally, the order’s conditions are linked to a Ministry of Finance letter addressed to a tax services provider. This means that, in practice, the exemption’s availability may depend on compliance actions taken by or through that provider, and on the documentation maintained in the tax file for the relevant period.
Why Is This Legislation Important?
For practitioners, the importance of this order lies in its direct impact on Singapore tax liability for dividend income—a category of income that, depending on the facts and the applicable statutory framework, may otherwise be taxable. By granting an exemption under section 13(12), the order can materially reduce or eliminate tax exposure for the qualifying dividends received by Hebsteel Global Holding Pte. Ltd. during the specified period.
Second, the order illustrates how Singapore’s tax system can deliver relief through targeted subsidiary legislation rather than relying solely on general provisions. This is particularly relevant where relief is contingent on complex cross-border structures and where the Minister’s discretion (or satisfaction of statutory criteria) is exercised through an order.
Third, the conditional nature of the exemption (paragraph 2(2)) makes it essential for lawyers to treat the Ministry of Finance letter as part of the operative framework. Even if the dividend payments appear to match the order’s description, failure to satisfy the conditions could jeopardise the exemption claim. Accordingly, counsel should ensure that the client’s tax documentation, dividend tracing, and compliance steps align with what the letter requires.
From an enforcement and audit perspective, the narrow scope (specific dates, specific payer, specific underlying profit sources) will likely make it easier for the tax authority to test eligibility. That also means the taxpayer should be prepared with a clear evidential trail: dividend vouchers, board resolutions, payment records, profit attribution or derivation evidence, and any correspondence or filings connected to the Ministry of Finance conditions.
Related Legislation
- Income Tax Act 1947 (Singapore) — in particular section 13(12) (the enabling provision for this exemption order)
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.