Statute Details
- Title: Income Tax (Olam Group Limited — Section 13(12) Exemption) Order 2024
- Act Code: ITA1947-S218-2024
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act 1947, section 13(12)
- Order Citation: No. S 218
- SL Number: SL 218/2024
- Date Made: 14 March 2024
- Commencement: Not stated in the extract (but the exemption applies to dividends received “after 3 January 2024”)
- Status: Current version as at 27 Mar 2026 (per the provided extract)
- Key Provision: Section 2 (Exemption)
What Is This Legislation About?
The Income Tax (Olam Group Limited — Section 13(12) Exemption) Order 2024 is a targeted tax exemption order issued by Singapore’s Minister for Finance under the specific exemption power in section 13(12) of the Income Tax Act 1947. In practical terms, it removes Singapore income tax from certain dividend income received by a Singapore-incorporated company—Olam Group Limited—provided strict conditions are met.
The exemption is narrow and fact-specific. It applies to dividend income received in Singapore by Olam Group Limited after 3 January 2024, where those dividends are received from Olam Food Ingredients Group Limited (a company incorporated in the United Kingdom). The UK company’s dividends must, in turn, be derived from particular underlying income streams of Olam International Limited (a Singapore-incorporated company).
In plain language, the Order is designed to prevent tax on a particular “dividend chain” within the Olam group, but only for dividends that can be traced to specified categories of income earned by Olam International Limited—namely (i) its business in Singapore and (ii) foreign dividends received by it. The exemption is also expressly made conditional on requirements set out in a letter from the Ministry of Finance dated 3 January 2024.
What Are the Key Provisions?
Section 1 (Citation) is straightforward. It identifies the instrument as the “Income Tax (Olam Group Limited — Section 13(12) Exemption) Order 2024.” This is standard drafting and does not create substantive tax effects by itself.
Section 2 (Exemption) contains the operative tax relief. The core mechanics are set out in two layers: (1) the type of income and the parties involved, and (2) the source/derivation of the dividend income, plus conditions.
First, the exemption applies to dividend income received in Singapore by Olam Group Limited. Under section 2(1), the exemption covers “dividend income received in Singapore by Olam Group Limited (a company incorporated in Singapore)” after 3 January 2024. This timing element is important for practitioners advising on tax accounting and compliance: only dividends received after that date fall within the exemption’s temporal scope.
Second, the dividends must be received from a specific intermediate company. The dividends must be received “from Olam Food Ingredients Group Limited” (UK-incorporated). This means the exemption is not a general exemption for any dividends received by Olam Group Limited; it is limited to dividends coming from this particular UK entity.
Third, the exemption is conditional on what the UK company’s dividends are derived from. Section 2(1) states that the dividends received by Olam Group Limited must be “derived from the following income of Olam International Limited” (Singapore-incorporated). The “following income” is then specified as:
- (a) income from Olam International Limited’s business in Singapore
- (b) foreign dividends received by Olam International Limited
This derivation requirement is the heart of the Order. It effectively traces the tax character of the underlying income of Olam International Limited through the group’s dividend distribution structure. For tax practitioners, this raises practical questions about how “derived from” is evidenced—typically through dividend declarations, accounting records, and corporate tax computations showing the source of distributable profits and their composition.
Fourth, the exemption is subject to conditions in a specific Ministry of Finance letter. Section 2(2) provides that the exemption “is subject to the conditions specified in the letter from the Ministry of Finance dated 3 January 2024 and addressed to Ernst & Young Solutions LLP.” This is a critical compliance hook. Even if the dividend chain and derivation criteria are satisfied, the exemption can be undermined if the conditions in that letter are not met.
Because the extract does not reproduce the letter’s contents, lawyers advising on this Order should treat the letter as essential. In practice, the conditions may relate to reporting, documentation, utilisation of tax attributes, corporate structuring, or other governance requirements. The legal effect is that the exemption is not unconditional; it is conditional upon compliance with an external instrument (the Ministry’s letter) referenced by date and addressee.
Finally, the Order is made by the Second Permanent Secretary, Ministry of Finance. The “Made on 14 March 2024” line confirms the formal enactment date and the signatory authority (LAI WEI LIN). While this does not change the exemption mechanics, it is relevant for confirming the instrument’s validity and the timeline of issuance relative to the “after 3 January 2024” application period.
How Is This Legislation Structured?
This Order is extremely concise. It consists of:
- Section 1 (Citation): naming the Order.
- Section 2 (Exemption): the operative provision, with:
- Section 2(1): defines the dividend income, the recipient, the payer, the timing, and the derivation from specified underlying income of Olam International Limited.
- Section 2(2): imposes conditions via reference to the Ministry of Finance letter dated 3 January 2024.
There are no additional Parts, schedules, or detailed procedural provisions in the extract. The structure reflects a bespoke exemption order rather than a broad legislative framework.
Who Does This Legislation Apply To?
The Order applies to Olam Group Limited, but only in respect of dividend income received in Singapore after 3 January 2024. The exemption is not available to other companies unless they fall within the exact statutory description (which, as drafted, is specific to Olam Group Limited and the specified dividend payer).
It also indirectly concerns Olam Food Ingredients Group Limited (the UK dividend payer) and Olam International Limited (the Singapore company whose income must be the source/derivation of the dividends). While those companies are not the direct “recipient” of the exemption, their income composition and distribution mechanics determine whether the exemption can apply.
From a practitioner’s perspective, the key compliance stakeholders are therefore the Singapore tax team of Olam Group Limited, the finance function responsible for dividend declarations and profit sourcing, and the advisors who must ensure that the conditions in the Ministry of Finance letter are satisfied and documented.
Why Is This Legislation Important?
This Order is important because it demonstrates how Singapore can grant relief through targeted subsidiary legislation under section 13(12) of the Income Tax Act 1947. For corporate groups, such exemptions can materially affect effective tax rates and cash tax outcomes—particularly where dividend flows are structured through multiple entities across jurisdictions.
Practically, the Order provides certainty that certain dividends in the group structure will be exempt from Singapore tax, but only where the legal conditions are met. The derivation requirement (from Olam International Limited’s Singapore business income and foreign dividends) means that tax relief is tied to the underlying character of profits, not merely to the fact that a dividend is received.
Equally important is the conditionality in section 2(2). Because the exemption depends on conditions in a Ministry of Finance letter dated 3 January 2024, the exemption’s value is only as strong as the group’s ability to comply with and evidence those conditions. For lawyers, this shifts the focus from purely statutory interpretation to also include document control, audit readiness, and ensuring that the group’s dividend and accounting practices align with the exemption’s intended scope.
Finally, the Order’s timing—dividends received “after 3 January 2024” despite being made on 14 March 2024—highlights the need for careful timeline analysis. Practitioners should verify dividend receipt dates, board resolutions, and payment dates to ensure that the exemption period is correctly applied.
Related Legislation
- Income Tax Act 1947 (Singapore) — in particular section 13(12) (the enabling provision for this exemption order)
- Income Tax Act 1947 (general framework for Singapore income tax, dividend taxation, and exemptions)
Source Documents
This article provides an overview of the Income Tax (Olam Group Limited — Section 13(12) Exemption) Order 2024 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.