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)
- Authorising Act: Income Tax Act (Chapter 134)
- Authorising Provision: Section 13(12) of the Income Tax Act
- Order Number / Citation: S 452/2020
- Date Made: 4 June 2020
- Commencement: The exemption applies to distribution income received “on or after 25 June 2019” (see section 2(1))
- Status: Current version as at 27 Mar 2026 (per the legislation portal display)
- Key Provision: Section 2 (Exemption)
What Is This Legislation About?
The Income Tax (Lendlease Global Commercial REIT — Section 13(12) Exemption) Order 2020 (“the Order”) is a targeted tax exemption instrument made under the Income Tax Act. In plain terms, it grants an exemption from Singapore income tax for certain distribution income received in Singapore by a specified Singapore company from a specified Italian real estate investment fund.
The Order is not a general tax regime. It is a bespoke exemption tied to a particular corporate recipient and a particular foreign fund, and it applies only to a defined category of income: “distribution income” received from that foreign fund. The exemption is also conditional, meaning it is granted only if the recipient satisfies requirements set out in a separate “letter of approval” issued by the tax authorities.
From a practitioner’s perspective, the Order is best understood as an administrative-tax measure that operationalises section 13(12) of the Income Tax Act. Section 13(12) empowers the Minister for Finance to exempt specified income in specified circumstances. This Order is the mechanism that applies that power to the Lendlease Global Commercial REIT structure and its associated Italian fund distributions.
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”. This is a standard provision used to formally name the Order.
2. Exemption of distribution income (Section 2(1))
The core operative provision is section 2. Under section 2(1), “distribution income received in Singapore” by Lendlease Global Commercial (IT) Pte Ltd (a Singapore-incorporated company) from Lendlease Global Commercial Italy Fund (a real estate investment fund constituted in Italy) is exempt from tax if the distribution is received on or after 25 June 2019.
This wording contains several practical elements that matter for tax analysis and compliance:
- Recipient is specific: the exemption is limited to Lendlease Global Commercial (IT) Pte Ltd. Other group entities are not automatically covered.
- Source is specific: the exemption applies only to distributions from the named Italian fund.
- Geographic receipt is specific: the income must be “received in Singapore”. This is relevant where distributions are declared abroad but remitted or credited to accounts in Singapore.
- Timing is specific: the exemption covers distributions received on or after 25 June 2019, meaning it operates with a backdated effective period relative to the date the Order was made (4 June 2020).
3. Conditions tied to a letter of approval (Section 2(2))
Section 2(2) makes the exemption conditional. 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 point: the Order itself does not list the conditions. Instead, it incorporates by reference the conditions in a separate approval letter. In practice, lawyers and tax advisers must obtain and review the letter of approval (and any subsequent amendments or clarifications) to determine:
- what eligibility criteria must be met (e.g., structure, regulatory status, distribution policy, or compliance steps);
- what ongoing obligations apply (e.g., reporting, documentation, or maintaining certain arrangements);
- what happens if conditions are breached (e.g., whether exemption is withdrawn, whether tax becomes payable, and whether penalties or interest may apply).
4. Making and sign-off
The Order states it was “Made on 4 June 2020” and is signed by the Permanent Secretary, Ministry of Finance, Singapore (TAN CHING YEE). This confirms it is a formal exercise of the statutory power under section 13(12) of the Income Tax Act.
How Is This Legislation Structured?
The Order is structured in a minimal, two-section format:
- Section 1 (Citation): provides the formal name of the Order.
- Section 2 (Exemption): contains the substantive exemption and its conditions.
There are no additional Parts or detailed schedules in the extract provided. The operative content is therefore concentrated in section 2, with the conditions being externalised to the referenced letter of approval dated 10 September 2019.
Who Does This Legislation Apply To?
The Order applies to Lendlease Global Commercial (IT) Pte Ltd as the Singapore recipient of the relevant income. It does not create a general exemption for all REIT-related income or for all distributions received by Singapore companies.
It also applies only to distributions from Lendlease Global Commercial Italy Fund, which is described as “a real estate investment fund constituted in Italy.” Accordingly, the exemption is tightly scoped by both recipient and source. The exemption is further limited to distribution income that is received in Singapore and received on or after 25 June 2019.
Finally, the exemption is conditional on compliance with the requirements in the letter of approval dated 10 September 2019 addressed to Ernst & Young Solutions LLP. While the addressee of the letter is not the company itself (it is the professional firm), the conditions are intended to govern the tax treatment of the relevant transactions and arrangements. Practitioners should treat the letter as binding for the exemption’s continued availability.
Why Is This Legislation Important?
This Order is important because it demonstrates how Singapore implements targeted tax relief for cross-border investment structures. For lawyers advising on REIT-related investments, fund structures, and cross-border distributions, the Order provides a concrete example of how section 13(12) exemptions operate: they are granted by ministerial order, but they are typically narrow and conditional.
From a compliance and risk perspective, the conditionality in section 2(2) is the main practical lever. Even where the income appears to fall within the literal description (distribution income received in Singapore from the named Italian fund), the exemption may be unavailable or may be withdrawn if the conditions in the approval letter are not met. Therefore, practitioners must not rely solely on the Order’s text; they must also diligence the approval letter and ensure that the client’s operations and reporting align with its conditions.
Additionally, the backdated effective period (“on or after 25 June 2019”) can be significant for tax filing and potential adjustments. If distributions were received between 25 June 2019 and the date the Order was made, advisers should consider whether the exemption was claimed (or could have been claimed) and whether any amended filings or documentation are required to support the exemption for that period.
Related Legislation
- Income Tax Act (Chapter 134) — in particular section 13(12) (the enabling provision for ministerial exemption orders)
- Income Tax Act (general provisions on chargeability, exemptions, and tax administration)
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.