Statute Details
- Title: Income Tax (LVMH Fragrances and Cosmetics (Singapore) Pte Ltd — Section 13(12) Exemption) Order 2010
- Act Code: ITA1947-S794-2010
- Legislative Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Key Enabling Provision: Section 13(12) of the Income Tax Act
- Primary Subject Matter: Dividend tax exemption for a specified Singapore company
- Enacting Instrument Date: 17 December 2010
- SL Citation: SL 794/2010
- Current Version Status: Current version as at 27 March 2026
- Most Recent Amendment Noted in Extract: Amended by S 506/2025 (with effect from 28/07/2025)
- Earlier Amendment Noted in Extract: Amended by S 504/2019 (with effect from 22/07/2019)
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 (“LVMH Singapore”)—an exemption from Singapore tax on certain dividends it receives from a related overseas company.
The exemption is not a general corporate tax relief. It is narrowly framed: it applies to dividends received in Singapore from Parfums Christian Dior Orient FZCO (“PCD Orient”), which is located in the United Arab Emirates, and only where LVMH Singapore holds 20% of the total number of issued ordinary shares in PCD Orient. The order therefore operates as a bespoke instrument addressing a particular corporate group structure and dividend flow.
Because it is made under section 13(12) of the Income Tax Act, the order sits within Singapore’s broader framework for dividend taxation and participation exemptions. Practically, it allows the specified company to avoid tax on qualifying dividends, subject to conditions set out by reference to specific letters issued by the Ministry of Finance and the Inland Revenue Authority of Singapore (IRAS), as well as timing and source-of-dividend limitations introduced through amendments.
What Are the Key Provisions?
1. Citation and legal basis. The order is cited as the “Income Tax (LVMH Fragrances and Cosmetics (Singapore) Pte Ltd — Section 13(12) Exemption) Order 2010.” It is made “in exercise of the powers conferred by section 13(12) of the Income Tax Act,” meaning the Minister for Finance is empowered to grant exemptions from tax on dividends in specified circumstances.
2. Core exemption: dividends from PCD Orient. The heart of the order is the exemption in paragraph 2(1). LVMH Singapore is exempt from tax on dividends received in Singapore from PCD Orient (located in the United Arab Emirates). The exemption applies only if PCD Orient is a company in which LVMH Singapore owns 20% of the total number of issued ordinary shares. This shareholding threshold is a gating condition: without the 20% ownership, the exemption would not be available under the order’s terms.
3. Timing and “basis periods” limitation for certain dividends. Paragraph 2(2) introduces a significant limitation. For the dividends specified in sub-paragraphs 2(a) and 2(b), the exemption in paragraph 2(1) applies only where those dividends are received in Singapore in the basis periods for the year of assessment 2017 and subsequent years of assessment. In other words, even if the dividends are otherwise from PCD Orient, the exemption for these particular categories is time-bound starting from YA 2017.
The specified categories are dividends that are “derived from dividends” that PCD Orient receives from its subsidiaries: (a) PCD Saudi Arabia Company (incorporated in Saudi Arabia) and (b) PCD DUBAI GENERAL TRADING L.L.C (incorporated in Dubai). This “derived from” language is important: it ties the exemption not merely to the immediate payer (PCD Orient) but to the underlying source of the profits distributed to PCD Orient and then passed through to LVMH Singapore.
4. Additional category introduced by amendment (G BEAUTY ORIENT L.L.C). Paragraph 2(2A) further expands the framework for dividends derived from dividends received by PCD Orient from another subsidiary, G BEAUTY ORIENT L.L.C (incorporated in the United Arab Emirates). However, the exemption for such dividends is conditional on a specific receipt date: the dividends must be received in Singapore on or after 3 May 2024. This is a clear example of how the order evolves to reflect changes in group restructuring or dividend policy, while still maintaining strict conditions.
5. Conditions by reference to specific letters. The order does not merely grant an exemption; it makes the exemption conditional. Paragraph 2(3) states that for dividends other than those specified in sub-paragraphs (2) and (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) similarly provides that the exemption for the dividends specified in sub-paragraph (2) is subject to conditions specified in (a) the Ministry of Finance letter dated 7 November 2018 addressed to Ernst & Young Solutions LLP, and (b) the IRAS letter dated 28 March 2025 issued on behalf of the Minister for Finance and addressed to EY Corporate Advisors Pte. Ltd.
Finally, paragraph 2(5) provides that the exemption for dividends specified in sub-paragraph (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.).
Practical significance of the “letters” mechanism: This drafting technique means that the operational conditions may not be fully visible within the order text itself. For practitioners, the letters referenced become essential primary documents. The exemption’s availability may depend on compliance with requirements such as documentation, corporate arrangements, anti-avoidance safeguards, or other conditions typically imposed in bespoke exemption orders. Failure to satisfy those conditions could jeopardise the exemption even if the shareholding and dividend-source conditions are met.
How Is This Legislation Structured?
The order is structured in a short, functional format typical of exemption orders. It contains:
Paragraph 1 (Citation): sets out the short title of the order.
Paragraph 2 (Exemption): provides the substantive exemption and its conditions. Paragraph 2 is subdivided into multiple sub-paragraphs that (i) define the company receiving the exemption, (ii) define the dividend payer and shareholding threshold, (iii) carve out specific categories of dividends with timing limitations, (iv) add further categories through amendments, and (v) impose conditions by reference to specified letters.
Execution clause: the order is “made” on 17 December 2010 by Peter Ong, Permanent Secretary, Ministry of Finance, Singapore, indicating the formal instrument-making authority.
Who Does This Legislation Apply To?
The exemption applies to LVMH Fragrances and Cosmetics (Singapore) Pte Ltd only. It is not a general exemption for all companies receiving dividends from PCD Orient. The order is therefore best understood as a company-specific tax relief instrument.
Within that company-specific scope, the exemption applies only to dividends received in Singapore from PCD Orient in the United Arab Emirates, where LVMH Singapore owns 20% of the total number of issued ordinary shares in PCD Orient. Additionally, the exemption’s availability for certain dividend categories depends on the underlying source of the dividends (dividends “derived from” PCD Orient’s own subsidiary receipts) and on the timing rules (YA 2017 onward for the Saudi Arabia and Dubai subsidiary-derived dividends; on or after 3 May 2024 for the G BEAUTY ORIENT L.L.C-derived dividends).
Why Is This Legislation Important?
This order is important because it directly affects the Singapore tax treatment of dividend income for a specific multinational group. For a practitioner advising on tax structuring, repatriation planning, or compliance for dividend receipts, the order provides a clear legal basis to claim exemption—subject to strict conditions.
From an enforcement and compliance perspective, the order’s most consequential feature is the conditionality by reference to external letters. Even where the statutory-style conditions (shareholding percentage, dividend payer, and dividend-source categories) are satisfied, the exemption may still depend on meeting requirements contained in the Ministry of Finance and IRAS letters dated 8 December 2010, 7 November 2018, and 28 March 2025. Practitioners should therefore treat those letters as integral to the exemption claim and ensure that internal tax documentation aligns with the conditions referenced.
Finally, the amendments reflected in S 504/2019 and S 506/2025 demonstrate that exemption orders can evolve to accommodate changes in corporate structure and dividend flows. The introduction of the G BEAUTY ORIENT L.L.C category with a specific effective receipt date (3 May 2024) illustrates how the tax outcome can hinge on precise timing and the provenance of underlying profits. Advisers should therefore implement robust dividend tracing and maintain evidence of when dividends were received and how they were derived.
Related Legislation
- Income Tax Act (Chapter 134) — in particular section 13(12) (the enabling provision for this exemption order)
- Income Tax (LVMH Fragrances and Cosmetics (Singapore) Pte Ltd — Section 13(12) Exemption) Order 2010 amendments: S 504/2019 and S 506/2025
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.