Statute Details
- Title: Income Tax (NTT DC REIT — Section 13(12) Exemption) Order 2025
- Act Code: ITA1947-S871-2025
- Type: Subsidiary Legislation (sl)
- Enacting Act / Authorising Act: Income Tax Act 1947
- Authorising Provision: Section 13(12) of the Income Tax Act 1947
- Legislation Number: S 871/2025
- Date Made: 29 December 2025
- Status: Current version as at 27 March 2026
- Key Operative Provisions: Paragraphs 2 and 3 (exemptions for specified Singapore companies)
- Commencement: Not expressly stated in the extract; exemptions apply to qualifying income “on or after 14 July 2025”
What Is This Legislation About?
The Income Tax (NTT DC REIT — Section 13(12) Exemption) Order 2025 is a targeted tax exemption order made under section 13(12) of Singapore’s Income Tax Act 1947. In practical terms, it grants specific exemptions from Singapore income tax for certain categories of cross-border investment income received by two Singapore-incorporated companies within the NTT DC REIT group structure.
The order focuses on two types of income: (i) interest income received by NTT DCR Singapore 3 Pte. Ltd. and (ii) dividend income received by NTT DCR Singapore 4 Pte. Ltd.. Both exemptions are linked to underlying property- and rental-related income streams from specified real estate assets (and related entities) located in the United States and Austria, respectively.
Although the order is narrow in scope—limited to named companies, named counterparties, and named properties—it is legally significant because it operates as a statutory mechanism to exempt otherwise taxable income. It also expressly ties the exemption to conditions stated in a letter from the Inland Revenue Authority of Singapore (IRAS) dated 20 June 2025, issued on behalf of the Minister for Finance.
What Are the Key Provisions?
1. Citation and legal basis
Paragraph 1 provides the short citation: the “Income Tax (NTT DC REIT — Section 13(12) Exemption) Order 2025”. The enacting formula states that the Minister for Finance makes the order in exercise of powers conferred by section 13(12) of the Income Tax Act 1947. This confirms that the exemption is not a general relief scheme; it is a statutory exemption granted under a specific enabling provision.
2. Exemption for NTT DCR Singapore 3 Pte. Ltd. (interest income)
Paragraph 2 sets out the exemption for NTT DCR Singapore 3 Pte. Ltd. The exemption applies to interest income described in paragraph 2(2) that is received in Singapore by NTT DCR Singapore 3 Pte. Ltd. on or after 14 July 2025 from NTT DCR US REIT, LLC (an entity incorporated in the United States).
The interest must arise from loans in two categories:
- Loan category (a): a loan granted by NTT DCR Singapore 3 Pte. Ltd. to NTT-US to fund NTT-US’s acquisition of ownership interests in specified US companies (NTT Global Data Centers VA2, LLC and NTT Global Data Centers CA1-3, LLC).
- Loan category (b): any loan granted by NTT DCR Singapore 3 Pte. Ltd. to NTT-US on or after 14 July 2025 to fund working capital or capital expenditure in respect of specified properties.
3. What income “counts” as originating from the relevant properties
Paragraph 2(2) clarifies that the exemption applies to interest income “originating from” certain streams. These streams include:
- rental and property-related income (including capital gain derived from divestment of property) from the properties listed in paragraph 2(3);
- interest income derived from temporary deposits with a financial institution in the United States of the income mentioned above; and
- gains from disposal of ownership interests in the specified US companies (VA2 and CA1-3).
This “originating from” language is important for tax practitioners because it indicates the exemption is not merely tied to the existence of a loan; it is tied to the economic source of the underlying cash flows that ultimately support the interest payments.
4. The specified US properties
Paragraph 2(3) lists four properties by name and address in the United States:
- CA1: 1200 Striker Avenue, Sacramento, CA 95834
- CA2: 1312 Striker Avenue, Sacramento, CA 95834
- CA3: 1625 West National Drive, Sacramento, CA 95834
- VA2: 44610 Guilford Drive, Ashburn, VA 20147
Practically, this means the exemption is anchored to a defined portfolio. If the group’s financing arrangements relate to other properties or other jurisdictions, the exemption would not automatically extend to those income streams.
5. Conditions attached to the exemption
Paragraph 2(4) provides that the exemption is subject to the conditions specified in a letter from IRAS dated 20 June 2025, issued on behalf of the Minister for Finance and addressed to EY Corporate Advisors Pte. Ltd.. This is a critical compliance point: even where the statutory language appears to fit, the exemption may be conditional upon satisfying requirements set out in that letter.
From a practitioner’s perspective, the letter is effectively part of the exemption’s operative framework. Advisers should ensure that the relevant conditions are obtained, understood, and documented—particularly where there are ongoing reporting, documentation, or structural requirements.
6. Exemption for NTT DCR Singapore 4 Pte. Ltd. (dividend income)
Paragraph 3 provides a separate exemption for NTT DCR Singapore 4 Pte. Ltd. It exempts dividend income described in paragraph 3(2) received in Singapore on or after 14 July 2025 from NTT Global Data Centers EMEA AT GmbH (an Austrian company).
The dividend income must originate from:
- rental and property-related income (including capital gain from divestment of property) from a specific property named “VIE1” at Computerstrasse 4, 1100 Vienna, Austria, where such income is not subject to tax under the laws of Austria; and
- interest income derived from temporary deposits with a financial institution in Austria of the income mentioned above.
The inclusion of the phrase “where such income is not subject to tax under the laws of Austria” indicates that the exemption is designed to address a particular cross-border tax treatment outcome—namely, that the underlying Austrian income is not taxed in Austria. This is consistent with the policy logic often underlying section 13(12) exemptions: preventing double taxation or aligning Singapore’s tax treatment with the intended international allocation of taxing rights.
7. Conditions attached to the dividend exemption
Paragraph 3(3) again states that the exemption is subject to the same IRAS letter dated 20 June 2025 issued on behalf of the Minister for Finance and addressed to EY Corporate Advisors Pte. Ltd.. This suggests that the conditions may be group-wide or transaction-specific across both exemptions.
8. Making date and formalities
The order was made on 29 December 2025 by the Second Permanent Secretary, Ministry of Finance. The presence of a legislative reference “[AG/LEGIS/SL/134/2025/7]” indicates formal registration and publication.
How Is This Legislation Structured?
This subsidiary legislation is structured in a short, practical format:
- Paragraph 1 (Citation): identifies the order.
- Paragraph 2 (Exemption for NTT DCR Singapore 3 Pte. Ltd.): sets out the interest exemption, including qualifying loans, the “originating from” income streams, the specified US properties, and the condition reference to the IRAS letter.
- Paragraph 3 (Exemption for NTT DCR Singapore 4 Pte. Ltd.): sets out the dividend exemption, including the Austrian source conditions, the specified property “VIE1”, and the same condition reference.
Notably, the extract does not show separate “definitions” sections or detailed procedural provisions. The operative content is contained entirely within the exemption paragraphs.
Who Does This Legislation Apply To?
The order applies to two specific Singapore-incorporated companies named in the legislation: NTT DCR Singapore 3 Pte. Ltd. and NTT DCR Singapore 4 Pte. Ltd. It does not create a general exemption for all REIT-related entities or all investors. The exemption is expressly limited to the named recipients and the specified counterparties and income sources.
In addition, the exemption is limited by time and source. The relevant income must be received in Singapore on or after 14 July 2025, and it must originate from the listed properties and income streams (US properties for the interest exemption; Austrian property “VIE1” for the dividend exemption). The order also ties the exemption to conditions in an IRAS letter, meaning eligibility may depend on compliance with those conditions.
Why Is This Legislation Important?
For practitioners, the significance of this order lies in its ability to change the Singapore tax outcome for cross-border financing and investment structures. Without the exemption, interest and dividend income received in Singapore would generally be subject to Singapore income tax (subject to other provisions such as treaty relief or other exemptions). This order provides a bespoke statutory pathway to exempt specified income categories.
From a transaction and compliance perspective, the order’s “originating from” approach requires careful tracing of cash flows. Advisers should consider how interest payments to NTT DCR Singapore 3 Pte. Ltd. are supported by the underlying property-related income and whether any temporary deposit arrangements fall within the described categories. Similarly, for NTT DCR Singapore 4 Pte. Ltd., advisers must ensure that the dividend income is linked to rental/property-related income from “VIE1” and that the underlying Austrian tax treatment matches the “not subject to tax under the laws of Austria” requirement.
Finally, the condition reference to the IRAS letter dated 20 June 2025 is a practical risk point. Exemptions that are “subject to conditions” can be vulnerable to denial or adjustment if conditions are not met. Lawyers should therefore treat the IRAS letter as essential interpretive material, coordinate with tax teams on documentation and reporting, and ensure that the group’s financing and property arrangements remain aligned with the order’s specified scope.
Related Legislation
- Income Tax Act 1947 (in particular, section 13(12))
- Income Tax Act 1947 (general provisions on chargeability and exemptions)
Source Documents
This article provides an overview of the Income Tax (NTT DC REIT — Section 13(12) Exemption) Order 2025 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.