Statute Details
- Title: Income Tax (Lendlease Global Commercial REIT — Section 13(12) Exemption) Order 2020
- Act Code: ITA1947-S452-2020
- Legislative Type: Subsidiary Legislation (SL)
- Statute Number: S 452/2020
- Authorising Act: Income Tax Act (Chapter 134)
- Enacting Provision: Section 13(12) of the Income Tax Act
- Date Made: 4 June 2020
- Citation: Income Tax (Lendlease Global Commercial REIT — Section 13(12) Exemption) Order 2020
- Status: Current version as at 27 Mar 2026
- Commencement: The exemption applies to distribution income received “on or after 25 June 2019” (as specified in the Order)
What Is This Legislation About?
The Income Tax (Lendlease Global Commercial REIT — Section 13(12) Exemption) Order 2020 is a targeted tax exemption instrument made under the Income Tax Act. In plain terms, it provides that certain distribution income received in Singapore by a specified Singapore company is exempt from Singapore income tax, provided that specified conditions are met.
The Order is not a broad tax reform measure. Instead, it is a bespoke exemption for a particular cross-border investment structure involving a real estate investment fund constituted in Italy. The exemption is linked to the “distribution income” concept—income arising from distributions made by the foreign fund to an investor entity in Singapore.
Practitioners should view this Order as part of Singapore’s wider approach to managing tax outcomes for qualifying investment arrangements. It uses the statutory mechanism in section 13(12) of the Income Tax Act, which empowers the Minister to grant exemptions in prescribed circumstances. Here, the exemption is granted to Lendlease Global Commercial (IT) Pte Ltd in respect of distributions from Lendlease Global Commercial Italy Fund.
What Are the Key Provisions?
1. Citation (Section 1)
Section 1 identifies the instrument as the “Income Tax (Lendlease Global Commercial REIT — Section 13(12) Exemption) Order 2020.” While this is a standard provision, it is important for practitioners when citing the exemption in submissions, tax computations, or correspondence with the Inland Revenue Authority of Singapore (IRAS).
2. Core Exemption (Section 2(1))
The operative provision is section 2(1). It states that distribution income received in Singapore by Lendlease Global Commercial (IT) Pte Ltd (a company incorporated in Singapore) from Lendlease Global Commercial Italy Fund (a real estate investment fund constituted in Italy) on or after 25 June 2019 is exempt from tax.
This provision contains several elements that lawyers should parse carefully:
- Recipient: the exemption is for a specific Singapore-incorporated company—Lendlease Global Commercial (IT) Pte Ltd.
- Source: the distributions must be received from a specific foreign fund—Lendlease Global Commercial Italy Fund.
- Character of income: the income must be “distribution income.” This aligns with the tax treatment of income streams arising from fund distributions.
- Geographical nexus: the income must be “received in Singapore.” This is a practical requirement that focuses on where the income is received, rather than where it is generated.
- Time period: the exemption applies to distributions received on or after 25 June 2019. This is a retroactive element in the sense that the Order was made in June 2020 but covers income received from an earlier date.
3. Conditions and Approval Letter (Section 2(2))
Section 2(2) makes the exemption conditional. It provides that the exemption in section 2(1) is subject to the conditions specified in the letter of approval dated 10 September 2019 addressed to Ernst & Young Solutions LLP.
For practitioners, this is a critical compliance hook. The Order itself does not list the conditions; instead, it incorporates them by reference to an external approval letter. This means that the exemption’s availability depends not only on the factual elements (recipient, source, distribution income, receipt in Singapore, and timing) but also on whether the conditions in the approval letter are satisfied.
In practice, lawyers should ensure that the relevant approval letter is obtained, reviewed, and retained. They should also confirm that the conditions are operationalised—e.g., through reporting, documentation, governance, or structural requirements—so that the taxpayer can demonstrate compliance if queried by IRAS.
4. Making and Signature
The Order was made on 4 June 2020 by the Permanent Secretary, Ministry of Finance, TAN CHING YEE. While this is not a substantive tax rule, it is relevant for verifying the instrument’s authenticity and effective coverage, particularly when advising on timelines and audit trails.
How Is This Legislation Structured?
The Order is structured in a concise format typical of exemption orders. It contains:
- Section 1 (Citation): provides the formal name of the Order.
- Section 2 (Exemption): sets out the exemption and its conditions. Subsection (1) grants the exemption; subsection (2) qualifies it by reference to conditions in an approval letter.
There are no additional Parts or complex schedules in the extract provided. The legal effect is therefore concentrated in section 2, with the conditions being externalised to the approval letter dated 10 September 2019.
Who Does This Legislation Apply To?
The exemption applies to Lendlease Global Commercial (IT) Pte Ltd, but only in respect of distribution income received in Singapore from Lendlease Global Commercial Italy Fund. The Order is therefore entity-specific and transaction-specific.
It does not create a general category of taxpayers who can automatically claim exemption. Instead, it is a bespoke instrument. Even if another Singapore company receives distributions from a different fund, or if Lendlease receives distributions from a different source, the exemption would not automatically apply. The taxpayer must fit squarely within the Order’s defined recipient and source, and must satisfy the conditions incorporated by reference to the approval letter.
Why Is This Legislation Important?
This Order is important because it directly affects the Singapore tax treatment of a specific income stream arising from an overseas real estate investment fund. For a practitioner, the key value lies in the ability to support a tax position—namely, that qualifying distribution income is exempt from Singapore tax—provided that the statutory and conditional requirements are met.
From a compliance and risk perspective, the conditional nature of the exemption is the main practical issue. Because section 2(2) incorporates conditions from an external approval letter dated 10 September 2019, the taxpayer’s ability to claim exemption depends on demonstrating compliance with those conditions. In disputes or audits, the absence of evidence of compliance could undermine the exemption even if the factual elements of section 2(1) are satisfied.
Additionally, the Order’s time coverage (distributions received on or after 25 June 2019) has planning and accounting implications. Tax computations, provisioning, and disclosure in tax filings may need to reflect the exemption for the relevant period. Lawyers advising on historical tax positions should consider whether the taxpayer has already filed returns treating the income as taxable, and whether any amendments or disclosures are required to align with the exemption.
Finally, this Order illustrates how Singapore uses section 13(12) of the Income Tax Act to tailor tax outcomes to particular investment structures. For counsel working on cross-border fund investments, it provides a concrete example of how exemption orders can be used to manage tax burdens on distribution income—subject to ministerial approval and specified conditions.
Related Legislation
- Income Tax Act (Chapter 134) — in particular section 13(12) (the enabling provision for this exemption order)
- Income Tax Act — general provisions on chargeability, exemptions, and the tax treatment of income received in Singapore
Source Documents
This article provides an overview of the Income Tax (Lendlease Global Commercial REIT — Section 13(12) Exemption) Order 2020 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.