Statute Details
- Title: Income Tax (LVMH Fragrances and Cosmetics (Singapore) Pte Ltd — Section 13(12) Exemption) Order 2010
- Act Code: ITA1947-S794-2010
- Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Cap. 134), specifically section 13(12)
- Enacting date: 17 December 2010
- Commencement: As reflected by amendments (not expressly stated in the extract)
- Primary subject matter: Targeted exemption from Singapore tax on certain dividends received by a specified company
- Key operative provision: Section 2 (Exemption)
- Current version status: Current version as at 27 Mar 2026
- Most recent amendment shown: Amended by S 506/2025 with effect from 28/07/2025
- Earlier amendment shown: Amended by S 504/2019 with effect from 22/07/2019
- Original publication: SL 794/2010 dated 27 Dec 2010
What Is This Legislation About?
The Income Tax (LVMH Fragrances and Cosmetics (Singapore) Pte Ltd — Section 13(12) Exemption) Order 2010 is a targeted tax exemption order made under the Income Tax Act. In plain terms, it grants a specific Singapore company—LVMH Fragrances and Cosmetics (Singapore) Pte Ltd—an exemption from Singapore tax on dividends received in Singapore from a particular foreign holding structure.
The exemption is anchored in section 13(12) of the Income Tax Act, which empowers the Minister for Finance to make orders granting exemptions in specified circumstances. This Order does not create a general rule for all taxpayers; instead, it applies to a named taxpayer and a defined set of dividend flows. That makes it particularly relevant for tax practitioners advising on dividend taxation, participation exemptions, and conditions precedent to claiming relief.
Practically, the Order is designed to mitigate Singapore tax exposure on dividends received from an overseas company in which the Singapore taxpayer holds a defined equity stake. It also introduces time-based and source-based limitations for certain dividends, and it ties the exemption to conditions set out in specific letters issued by the Ministry of Finance and the Inland Revenue Authority of Singapore (IRAS), as referenced in the Order.
What Are the Key Provisions?
1. Citation and legal basis (Section 1)
Section 1 provides the short title of the Order: Income Tax (LVMH Fragrances and Cosmetics (Singapore) Pte Ltd — Section 13(12) Exemption) Order 2010. It also confirms that the Minister for Finance is exercising powers conferred by section 13(12) of the Income Tax Act.
2. The exemption granted (Section 2(1))
The core relief is in Section 2(1). It states that LVMH Fragrances and Cosmetics (Singapore) Pte Ltd is granted an exemption from tax on dividends received in Singapore from Parfums Christian Dior Orient FZCO (referred to in the Order as PCD Orient), which is located in the United Arab Emirates.
The exemption applies only where PCD Orient is a company in which the Singapore taxpayer owns 20% of the total number of issued ordinary shares. This is a classic threshold requirement: the exemption is not available for dividends from any unrelated foreign entity; it is tied to a defined ownership relationship.
3. Source-based and time-based limitations (Section 2(2), (2A))
Section 2(2) narrows the scope for certain dividends. It provides that the exemption in Section 2(1) applies to the dividends described in sub-paragraphs (a) and (b) only where they are received in Singapore in the basis periods for the year of assessment 2017 and subsequent years of assessment.
Those dividends are described as dividends that are derived from dividends that PCD Orient receives from its subsidiaries:
- PCD Saudi Arabia Company (A Limited Liability Company) (incorporated in Saudi Arabia) — Section 2(2)(a)
- PCD DUBAI GENERAL TRADING L.L.C (incorporated in Dubai) — Section 2(2)(b)
In other words, the Order distinguishes between (i) dividends from PCD Orient generally, and (ii) dividends from PCD Orient that are “traced” to underlying dividends PCD Orient receives from specified subsidiaries. This is important for practitioners because it introduces a look-through concept: the tax treatment in Singapore depends on the ultimate source of the dividend stream.
Section 2(2A), inserted by the 2025 amendment, further extends the tracing concept to another subsidiary: G BEAUTY ORIENT L.L.C (incorporated in the United Arab Emirates). The exemption applies to dividends derived from dividends that PCD Orient receives from G BEAUTY ORIENT L.L.C only if the dividends are received in Singapore on or after 3 May 2024.
This creates a clear effective date for the additional traced dividend category. For compliance and claim substantiation, practitioners should treat 3 May 2024 as a critical cut-off date for eligibility under Section 2(2A).
4. Conditions attached to the exemption (Sections 2(3)–(5))
A defining feature of this Order is that the exemption is not unconditional. Section 2(3) states that for dividends other than those specified in Sections 2(2) and (2A), the exemption is subject to conditions specified in:
- letters from the Ministry of Finance dated 8 December 2010 and 7 November 2018, both addressed to Ernst & Young Solutions LLP; and
- a letter from IRAS dated 28 March 2025 issued on behalf of the Minister for Finance and addressed to EY Corporate Advisors Pte. Ltd.
Section 2(4) similarly provides that the exemption for the dividends specified in Section 2(2) is subject to conditions specified in:
- the Ministry of Finance letter dated 7 November 2018 addressed to Ernst & Young Solutions LLP; and
- the IRAS letter dated 28 March 2025 issued on behalf of the Minister for Finance and addressed to EY Corporate Advisors Pte. Ltd.
Section 2(5) provides that the exemption for dividends specified in Section 2(2A) is subject to conditions specified in the IRAS letter dated 28 March 2025 issued on behalf of the Minister for Finance and addressed to EY Corporate Advisors Pte. Ltd.
From a practitioner’s standpoint, these references are crucial: the Order’s operative exemption is framed as conditional upon compliance with specific administrative requirements set out in external letters. While the extract does not reproduce those conditions, the legal effect is that the exemption is statutorily linked to them. Advisers should obtain and review the referenced letters to confirm the precise conditions (for example, documentation, corporate structure requirements, anti-avoidance safeguards, or reporting obligations).
5. Making and signature
The Order was made on 17 December 2010 by Peter Ong, Permanent Secretary, Ministry of Finance. The inclusion of the making date and signatory is standard for subsidiary legislation and supports its formal validity.
How Is This Legislation Structured?
This Order is structured in a conventional subsidiary legislation format with a short title and an operative exemption provision. In the extract, the document contains:
- Section 1 (Citation): establishes the name of the Order.
- Section 2 (Exemption): contains the substantive relief, including:
- the general exemption for dividends from PCD Orient where the 20% ordinary shareholding threshold is met;
- sub-categories of dividends with time/source limitations (Sections 2(2) and 2(2A)); and
- conditions attached to each category of dividends via referenced letters (Sections 2(3)–(5)).
There are no additional parts or schedules shown in the extract. The legal “moving parts” are therefore concentrated in Section 2 and the referenced external letters.
Who Does This Legislation Apply To?
The Order applies to LVMH Fragrances and Cosmetics (Singapore) Pte Ltd only. It is a person-specific exemption order, not a general exemption available to all taxpayers meeting certain criteria.
Within that company, the exemption applies to dividends received in Singapore from PCD Orient in the United Arab Emirates, provided the ownership threshold of 20% of issued ordinary shares is satisfied. For certain dividend categories, the exemption is further limited to dividends received in specified basis periods (YA 2017 onwards) or on/after a specified date (3 May 2024), and it is conditioned on compliance with the referenced letters.
Why Is This Legislation Important?
This Order is important because it illustrates how Singapore’s tax system can provide targeted relief for cross-border dividend flows, while still requiring conditions and traceability of dividend sources. For practitioners, it is a useful reference point when advising on whether dividend income may be exempt under section 13(12) frameworks and how such exemptions are operationalised through subsidiary legislation.
From a compliance perspective, the Order’s reliance on external letters means that the exemption is not merely a matter of corporate ownership and dividend receipt. The taxpayer must be able to demonstrate that it has satisfied the conditions specified in the Ministry of Finance and IRAS letters referenced in Sections 2(3)–(5). In practice, this often requires careful documentation of corporate structure, dividend declarations, and the basis periods in which dividends are received.
Finally, the amendments effective in 2019 and 2025 show that the scope of the exemption can evolve—particularly by adding new traced subsidiary sources (such as G BEAUTY ORIENT L.L.C) and by setting new effective dates (3 May 2024). Tax advisers should therefore treat the “current version” as essential and verify whether amendments alter eligibility for dividends received in particular years of assessment.
Related Legislation
- Income Tax Act (Cap. 134) — in particular section 13(12) (authorising power for exemption orders)
- Income Tax (LVMH Fragrances and Cosmetics (Singapore) Pte Ltd — Section 13(12) Exemption) Order 2010 amendments:
- S 504/2019 (effective 22/07/2019)
- S 506/2025 (effective 28/07/2025)
Source Documents
This article provides an overview of the Income Tax (LVMH Fragrances and Cosmetics (Singapore) Pte Ltd — Section 13(12) Exemption) Order 2010 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.