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 (Chapter 134), section 13(12)
- Citation: S 794/2010 (as originally made)
- Enacting date: 17 December 2010
- Key operative provision: Exemption granted under paragraph 2
- Current version status: Current version as at 27 Mar 2026
- Notable amendments: Amended by S 504/2019 (w.e.f. 22/07/2019) and S 506/2025 (w.e.f. 28/07/2025)
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 Singapore’s 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 certain dividends received in Singapore from a particular foreign shareholder 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 from tax on dividends in specified circumstances. This particular Order is not a general relief for all taxpayers; it is company-specific and dividend-specific, reflecting a negotiated or structured tax outcome tied to the recipient’s shareholding and the source of the dividends.
Practically, the Order addresses the Singapore tax treatment of dividends received by the Singapore entity from an overseas company, Parfums Christian Dior Orient FZCO (referred to in the Order as PCD Orient), located in the United Arab Emirates. The relief is designed to prevent double taxation or to align Singapore’s tax outcomes with the underlying investment structure—subject to conditions set out in letters from the Ministry of Finance and the Inland Revenue Authority of Singapore (IRAS), as incorporated by reference.
What Are the Key Provisions?
1. Citation (paragraph 1)
Paragraph 1 provides the short title: the Order may be cited as the Income Tax (LVMH Fragrances and Cosmetics (Singapore) Pte Ltd — Section 13(12) Exemption) Order 2010. This is standard drafting, but it also helps practitioners locate the correct instrument and track amendments over time.
2. Core exemption: dividends from PCD Orient (paragraph 2(1))
The heart of the Order is paragraph 2(1). It states that LVMH Fragrances and Cosmetics (Singapore) Pte Ltd is granted an exemption from tax on the dividends received in Singapore from PCD Orient (located in the United Arab Emirates), where PCD Orient is a company in which the Singapore company owns 20% of the total number of issued ordinary shares.
This provision is important for two reasons. First, it defines the recipient (the Singapore company) and the source (PCD Orient). Second, it makes the relief conditional on the shareholding percentage—here, a specific threshold of 20% of issued ordinary shares. For tax planning and compliance, practitioners should treat this as a factual condition: the exemption is not merely conceptual; it depends on the ownership structure.
3. Time and “downstream dividend” limitations (paragraph 2(2))
Paragraph 2(2) narrows the exemption for certain dividends derived from dividends that PCD Orient receives from its own subsidiaries. The Order provides that sub-paragraph (1) applies only where the relevant dividends are received in Singapore in the basis periods for the year of assessment 2017 and subsequent years of assessment.
Two categories are specified in paragraph 2(2):
(a) dividends derived from dividends that PCD Orient receives from PCD Saudi Arabia Company (A Limited Liability Company) (incorporated in Saudi Arabia); and
(b) dividends derived from dividends that PCD Orient receives from PCD DUBAI GENERAL TRADING L.L.C (incorporated in Dubai).
From a practitioner’s perspective, this is a classic “look-through” structure: the exemption for dividends received by the Singapore company depends not only on the immediate payer (PCD Orient) but also on the ultimate source of the underlying profits distributed to PCD Orient by its subsidiaries. The “basis periods for YA 2017 and subsequent years” limitation is also critical for determining which tax years are covered.
4. Additional downstream category and effective date (paragraph 2(2A))
The Order was later amended to add paragraph 2(2A). It provides that the exemption in paragraph 2(1) applies to dividends received by the Singapore company that are derived from dividends which PCD Orient receives from its subsidiary G BEAUTY ORIENT L.L.C (incorporated in the United Arab Emirates), but only if the dividends are received in Singapore on or after 3 May 2024.
This amendment is significant because it introduces a new downstream source and a precise effective date. Practitioners should therefore treat 3 May 2024 as a cut-off for eligibility for this additional category. In practice, this will require careful dividend tracing and confirmation of receipt dates and basis periods.
5. Conditions incorporated by reference (paragraphs 2(3)–(5))
A distinctive feature of this Order is that the exemption is subject to conditions specified in letters rather than in the Order itself. Paragraph 2(3) states that for dividends other than those specified in paragraph 2(2) and 2(2A), the exemption is subject to conditions specified in:
(a) letters from the Ministry of Finance dated 8 December 2010 and 7 November 2018, both addressed to Ernst & Young Solutions LLP; and
(b) a letter from IRAS dated 28 March 2025 issued on behalf of the Minister for Finance and addressed to EY Corporate Advisors Pte. Ltd.
Paragraph 2(4) provides similar conditionality for the dividends specified in paragraph 2(2), referencing the Ministry of Finance letter dated 7 November 2018 and the same 28 March 2025 IRAS letter. Paragraph 2(5) provides that the exemption for dividends specified in paragraph 2(2A) is subject to conditions specified in the 28 March 2025 IRAS letter.
For legal work, this incorporation-by-reference drafting is highly practical but also creates a compliance challenge: the operative conditions are not fully reproduced in the Order text. Counsel should therefore obtain and review the referenced letters to confirm the exact conditions (for example, documentation requirements, anti-abuse safeguards, reporting obligations, or restrictions on related-party transactions). The letters’ addressees (EY Solutions LLP / EY Corporate Advisors Pte. Ltd.) also suggest that the conditions were negotiated and documented through specific advisory channels—meaning the taxpayer’s internal file should preserve these documents.
How Is This Legislation Structured?
This Order is very short and consists essentially of two operative components: paragraph 1 (citation) and paragraph 2 (exemption). Paragraph 2 is subdivided into multiple sub-paragraphs that (i) identify the exemption scope, (ii) define which dividends qualify based on downstream sources and timing, and (iii) impose conditions through referenced letters.
There are no “Parts” or extensive schedules in the extract provided. The structure is typical of a bespoke exemption order: a single exemption clause with detailed eligibility and conditionality provisions.
Who Does This Legislation Apply To?
The Order applies to LVMH Fragrances and Cosmetics (Singapore) Pte Ltd as the sole named beneficiary. It does not create a general class of taxpayers; instead, it grants a specific exemption to a specific company.
Eligibility also depends on the relationship between the Singapore company and PCD Orient—specifically, that the Singapore company owns 20% of the total number of issued ordinary shares in PCD Orient. Further, the exemption’s application to dividends derived from PCD Orient’s subsidiaries is limited by the categories listed in paragraphs 2(2) and 2(2A), and by the relevant timing rules (YA 2017 onward for the earlier categories; on/after 3 May 2024 for the G BEAUTY ORIENT L.L.C category).
Why Is This Legislation Important?
Although the Order is narrow in scope, it can be highly material to the beneficiary’s Singapore tax position. Dividends received by a Singapore company can be subject to tax depending on the statutory framework and available exemptions. This Order provides a tailored relief for dividends from a specific UAE company and for dividends with specified downstream origins.
From an enforcement and compliance standpoint, the most important practical aspect is the conditionality embedded through referenced letters. Even where the ownership and dividend-source conditions are satisfied, the exemption may be contingent on compliance with conditions set out in the Ministry of Finance and IRAS letters dated 2010, 2018, and 2025. Practitioners should therefore treat the exemption as a “qualified” relief requiring documentary support and adherence to any reporting or substantiation requirements.
Finally, the amendments (notably in 2019 and 2025) demonstrate that eligibility can evolve over time—adding new downstream subsidiaries and introducing new effective dates. Counsel advising on dividend planning, corporate restructuring, or tax filings should therefore verify the current version and the relevant effective dates for each dividend category to avoid under- or over-claiming the exemption.
Related Legislation
- Income Tax Act (Chapter 134) — in particular section 13(12) (the enabling provision)
- Income Tax (LVMH Fragrances and Cosmetics (Singapore) Pte Ltd — Section 13(12) Exemption) Order 2010 amendments:
- S 504/2019 (w.e.f. 22/07/2019)
- S 506/2025 (w.e.f. 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.