Statute Details
- Title: Income Tax (Parkway Life Japan4 Pte. Ltd. — Section 13(12) Exemption) (No. 2) Order 2021
- Act Code: ITA1947-S755-2021
- Legislative Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Authorising Provision: Section 13(12) of the Income Tax Act
- Enacting/Order Date: Made on 2 October 2021
- Commencement: The exemption applies to relevant receipts “on or after 31 August 2021” (as specified in the Order)
- Legislation Number: SL 755/2021 (No. S 755)
- Status: Current version as at 27 Mar 2026 (per the provided extract)
- Key Provisions: Section 1 (Citation); Section 2 (Exemption)
What Is This Legislation About?
The Income Tax (Parkway Life Japan4 Pte. Ltd. — Section 13(12) Exemption) (No. 2) Order 2021 (“the Order”) is a targeted tax exemption instrument made under the Singapore Income Tax Act. In practical terms, it grants an exemption from Singapore income tax for certain partnership profits that are generated in Japan and then received in Singapore by a specific Singapore company, Parkway Life Japan4 Pte. Ltd.
The exemption is anchored in section 13(12) of the Income Tax Act, which empowers the Minister for Finance to grant exemptions in prescribed circumstances. Here, the Order identifies (i) the Japanese entity distributing the partnership profits, (ii) the Singapore company receiving them, (iii) the types of income that qualify (rental income and capital gains), (iv) the particular assets (“specified property”) to which the income relates, and (v) the time period from which the exemption applies (on or after 31 August 2021).
Because this is an “exemption order” rather than a general tax rule, its scope is narrow and fact-specific. For practitioners, the key is not only the statutory wording but also the conditions referenced by the Order—particularly the “letter of approval dated 31 August 2021” addressed to Parkway Trust Management Limited.
What Are the Key Provisions?
Section 1 (Citation) is straightforward: it confirms the short title of the Order as “Income Tax (Parkway Life Japan4 Pte. Ltd. — Section 13(12) Exemption) (No. 2) Order 2021.” While not substantive, citation provisions matter for legal certainty, especially when multiple exemption orders exist for the same group or transaction series (as suggested by “(No. 2)”).
Section 2 (Exemption) is the operative provision. The structure of the exemption is as follows:
(1) Exempt partnership profits distributed by a specified Japanese entity and received in Singapore by a specified Singapore company. The Order provides that “any partnership profit” described in paragraph (2) that is distributed by Godo Kaisha Samurai 15 (an entity incorporated in Japan) and received in Singapore by Parkway Life Japan4 Pte. Ltd. on or after 31 August 2021 is exempt from tax.
This language indicates that the exemption is triggered by a combination of elements: (a) the profit must be a “partnership profit” of the type described; (b) it must be distributed by the named Japanese entity; (c) it must be received in Singapore by the named Singapore company; and (d) the receipt must occur on or after the specified date. For tax planning and compliance, these elements are typically evidenced through partnership distribution statements, accounting records, and bank receipt documentation.
(2) The qualifying partnership profits must comprise either rental income or capital gain, each tied to a “specified property.” The Order limits the exemption to partnership profit comprising:
- (a) rental income derived from rental of a specified property; or
- (b) capital gain derived from the divestment (disposal) of a specified property.
Accordingly, the exemption does not cover all partnership profits indiscriminately. It is confined to profits that can be traced to either (i) rental streams from the specified assets or (ii) gains arising from the sale/disposal of those assets. In practice, this requires careful income classification and asset-level tracking—particularly where a partnership may have multiple revenue streams or where expenses and gains must be allocated between different assets.
(3) The exemption is conditional on requirements in a letter of approval dated 31 August 2021. Section 2(3) states that the exemption is “subject to the conditions specified in the letter of approval dated 31 August 2021 addressed to Parkway Trust Management Limited.” This is a critical compliance point. Even if the statutory conditions in Section 2(1) and 2(2) are met, failure to satisfy the conditions in the approval letter could jeopardise the exemption.
For lawyers, this means the approval letter is not merely administrative—it is effectively incorporated by reference into the exemption regime. Practitioners should therefore obtain and review the letter of approval, identify all conditions (for example, reporting obligations, restrictions on asset disposal, governance requirements, or compliance with Singapore tax administration), and ensure that the client’s operational and accounting practices align with those conditions.
(4) “Specified property” is defined by reference to two named properties in Japan. Section 2(4) defines “specified property” as either:
- (a) “Crea Adachi” situated in Adachi City, Tokyo Prefecture, Japan; or
- (b) “Will‑Mark Kashiihama” situated in Fukuoka City, Fukuoka Prefecture, Japan.
This definition is highly specific. It suggests that the exemption is asset-linked: rental income and capital gains must relate to these particular properties. If the partnership earns income from other properties, or if the partnership’s portfolio changes, the exemption may not extend to those other assets unless a further exemption order (or an amendment) is issued, or unless the approval letter provides for a permissible substitution mechanism (which would need to be confirmed by reviewing the approval letter).
Making and signature: The Order was “Made on 2 October 2021” and signed by TAN CHING YEE, Permanent Secretary, Ministry of Finance. This confirms the formal exercise of the Minister’s powers under section 13(12) of the Income Tax Act.
How Is This Legislation Structured?
The Order is structured in a compact, two-part format typical of exemption orders:
- Section 1 (Citation): identifies the Order by name.
- Section 2 (Exemption): sets out the substantive exemption, including the qualifying parties, the qualifying income types, the relevant date, the conditions incorporated by reference, and the definition of “specified property.”
There are no additional Parts or detailed schedules in the provided extract. The practical “architecture” of the exemption is therefore contained entirely within Section 2 and its cross-references to (i) the Income Tax Act (section 13(12)) and (ii) the letter of approval dated 31 August 2021.
Who Does This Legislation Apply To?
Although the Order is made under the Income Tax Act, its direct effect is limited to the named parties and the specified transaction context. The exemption applies to:
- Godo Kaisha Samurai 15 (the Japanese entity distributing the partnership profits); and
- Parkway Life Japan4 Pte. Ltd. (the Singapore company receiving those profits).
In addition, the Order references Parkway Trust Management Limited through the approval letter addressed to it. While the exemption is for profits received by Parkway Life Japan4 Pte. Ltd., the approval conditions are tied to Parkway Trust Management Limited, implying that it plays a role in the arrangement—likely as a manager or trustee/manager entity responsible for compliance with the approval conditions.
For other taxpayers, the Order does not create a general rule. Unless a taxpayer is in the same position as Parkway Life Japan4 Pte. Ltd. (receiving qualifying partnership profits from the specified Japanese entity, relating to the specified properties, and meeting the approval conditions), the exemption will not be available.
Why Is This Legislation Important?
This Order is important because it illustrates how Singapore’s tax system uses targeted exemption instruments to support specific cross-border investment structures. By exempting certain partnership profits, the Order can improve after-tax returns for the relevant investment vehicle and reduce the tax friction that might otherwise apply to income received in Singapore.
From a practitioner’s perspective, the Order’s significance lies in its precision and conditionality. The exemption is not automatic merely because income is received in Singapore. It is contingent on: (i) the identity of the distributing entity, (ii) the identity of the recipient, (iii) the timing of receipt, (iv) the nature of the income (rental or capital gain), (v) the linkage to named properties, and (vi) compliance with conditions in the approval letter dated 31 August 2021.
In enforcement and dispute contexts, the most likely fault lines are (a) whether the income qualifies as “partnership profit” of the described kind, (b) whether the income can be properly attributed to the “specified property,” and (c) whether the approval letter conditions were satisfied. Therefore, lawyers should treat this Order as requiring a compliance file: documentation of distributions, asset-level income tracking, and evidence of adherence to the approval conditions.
Related Legislation
- Income Tax Act (Chapter 134) — in particular section 13(12) (the enabling provision for the exemption order)
- Income Tax Act timeline / legislation timeline (as referenced in the provided extract, to confirm the correct version and amendments)
Source Documents
This article provides an overview of the Income Tax (Parkway Life Japan4 Pte. Ltd. — Section 13(12) Exemption) (No. 2) Order 2021 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.