Statute Details
- Title: Income Tax (Parkway Life Real Estate Investment Trust — Section 13(12) Exemption) Order 2025
- Act Code: ITA1947-S829-2025
- Type: Subsidiary Legislation (SL)
- Enacting Formula / Authority: Made in exercise of powers conferred by section 13(12) of the Income Tax Act 1947
- Citation: No. S 829
- SL Number: SL 829/2025
- Date Made: 20 December 2025
- Status: Current version as at 27 Mar 2026
- Commencement: The exemption applies to income received “on or after 12 November 2025” (as specified in the Order)
- Key Provision: Exemption under paragraph 2, including specific categories of interest income and conditions
- Beneficiary / Trustee: HSBC Institutional Trust Services (Singapore) Limited (as trustee of Parkway Life Real Estate Investment Trust)
- Related Parties / Underlying Assets: Parkway Life Santé 6 SCI, 7 SCI, 8 SCI, and 9 SCI (France) and specified properties in France
What Is This Legislation About?
The Income Tax (Parkway Life Real Estate Investment Trust — Section 13(12) Exemption) Order 2025 is a targeted tax exemption order issued under the Income Tax Act 1947. In plain terms, it grants a specific exemption from Singapore income tax for certain interest income received in Singapore by a particular trustee—HSBC Institutional Trust Services (Singapore) Limited—in its capacity as trustee of the Parkway Life Real Estate Investment Trust (“Parkway Life REIT”).
The exemption is not general. It is tightly scoped to (i) the recipient (HSBC Institutional Trust Services (Singapore) Limited as trustee), (ii) the instrument of income (interest income), (iii) the source and character of the underlying income (interest that originates from rental and other property-related income, including capital gains on property divestment, in France), and (iv) the specific underlying French property vehicles and properties.
Operationally, the Order is designed to facilitate the tax treatment of cross-border financing arrangements connected to the REIT’s French real estate portfolio. It also demonstrates the Singapore tax administration’s approach to granting exemptions: even where the statutory power exists, the exemption is typically subject to conditions set out by the Inland Revenue Authority of Singapore (IRAS), usually to ensure compliance, proper documentation, and alignment with policy objectives.
What Are the Key Provisions?
1. Citation and legal basis
Paragraph 1 provides the short title: the “Income Tax (Parkway Life Real Estate Investment Trust — Section 13(12) Exemption) Order 2025”. The Order is made pursuant to section 13(12) of the Income Tax Act 1947. Section 13(12) is the enabling provision that empowers the Minister for Finance to grant exemptions in specified circumstances. This Order is therefore an instrument that activates that statutory discretion for a defined fact pattern.
2. The exemption—what income is exempt
The core operative provision is paragraph 2. Under paragraph 2(1), the following income received in Singapore is exempt from tax:
- Interest income received by HSBC Institutional Trust Services (Singapore) Limited in its capacity as trustee of Parkway Life REIT.
- The interest income must be received on or after 12 November 2025.
- The interest must be received in relation to specified underlying entities and properties in France.
The Order then enumerates four categories of interest income, each linked to a French company (a “SCI”):
- Parkway Life Santé 6 SCI — interest tied to rental and other property-related income (including capital gains from divestment of property) relating to the property “Résidence d’Automne” at 11 avenue du Docteur Schweitzer, Champs-sur-Yonne – 89290, France.
- Parkway Life Santé 7 SCI — interest tied to rental and other property-related income (including capital gains from divestment) relating to “Le Clos Rousset” at Chemin Rousset, Saint‑Marcel‑lès‑Valence – 26320, France.
- Parkway Life Santé 8 SCI — interest tied to rental and other property-related income (including capital gains from divestment) relating to “Résidence Ducale” at 7 rue des Aliziers, Villers‑Semeuse – 08000, France.
- Parkway Life Santé 9 SCI — interest tied to rental and other property-related income (including capital gains from divestment) relating to “La Demeure du Bois Ardent” at 780 rue de l’Exode, Saint‑Lô – 50000, France.
Practical takeaway: the exemption is not merely “interest on loans”. It is interest income that can be traced to a particular financing structure and to the underlying French property income streams. For practitioners, this means the tax treatment will depend on the ability to demonstrate the linkage between the interest received in Singapore and the specified French property-related income.
3. Conditions precedent—IRAS letter and compliance requirements
Paragraph 2(2) makes the exemption conditional. Specifically, the exemption is subject to the conditions specified in a letter from IRAS issued on behalf of the Minister for Finance and addressed to KPMG Services Pte. Ltd. The letter is dated 12 November 2025 and revised on 5 December 2025.
This structure is common in Singapore tax exemption orders: the Order itself states the exemption and the broad scope, while the detailed compliance requirements are set out in an IRAS letter. For legal and tax teams, the letter’s conditions are therefore not optional. They may include requirements relating to:
- the nature and documentation of the financing arrangement;
- how the interest is computed and paid;
- reporting and record-keeping obligations;
- anti-avoidance safeguards or restrictions on changes to the structure;
- timing and administrative procedures for claiming the exemption.
Practical takeaway: even though the Order is “current” and provides an exemption, failure to satisfy the conditions in the IRAS letter could jeopardise the exemption. Practitioners should treat the IRAS letter as part of the effective legal framework for the exemption claim.
4. Temporal scope
The exemption applies to income received “on or after 12 November 2025”. This is important for tax computation and filing. It suggests that interest received before that date is outside the exemption, even if it relates to the same underlying arrangement. Accordingly, tax filings for the relevant YA/periods should be reviewed to ensure that the exemption is applied only to qualifying amounts within the specified timeframe.
How Is This Legislation Structured?
This Order is structured in a short, functional format typical of exemption orders made under a specific statutory power. It contains:
- Paragraph 1 (Citation): sets out the short title.
- Paragraph 2 (Exemption): contains the operative exemption, including:
- Sub-paragraph (1): identifies the exempt income, the recipient, the relevant REIT/trust capacity, the start date, and the enumerated underlying French entities/properties.
- Sub-paragraph (2): imposes conditions by reference to an IRAS letter (dated 12 November 2025, revised 5 December 2025).
The remainder of the document includes the making clause (signature and date) and administrative identifiers. There are no “Parts” or extensive sections; the Order is essentially a targeted legal instrument.
Who Does This Legislation Apply To?
The exemption applies to income received in Singapore by HSBC Institutional Trust Services (Singapore) Limited, but only in its capacity as trustee of Parkway Life Real Estate Investment Trust. This capacity limitation matters: if the same entity receives income in a different capacity, or if the income is not connected to the REIT trust arrangement, the exemption may not apply.
Additionally, the exemption is limited to interest income that is linked to the specified French entities—Parkway Life Santé 6 SCI, 7 SCI, 8 SCI, and 9 SCI—and to the specified properties in France. Therefore, the exemption is best understood as applying to a particular financing and property income profile rather than to all interest income associated with Parkway Life REIT generally.
Why Is This Legislation Important?
For practitioners, the significance of this Order lies in its role as a Singapore tax relief mechanism for a cross-border REIT structure. REITs often involve complex financing arrangements and multi-jurisdictional property holdings. By granting a tailored exemption for interest income connected to specified French property-related income streams, the Order can materially affect the tax cost and cash flows of the trust arrangement.
Second, the Order illustrates the importance of conditions and administrative letters in Singapore tax exemptions. Even where the exemption is clearly stated, the legal enforceability is effectively tied to compliance with the IRAS letter dated 12 November 2025 (revised 5 December 2025). In practice, this means that tax counsel and corporate tax teams should obtain, review, and operationalise the conditions—ensuring that the structure, documentation, and reporting align with what IRAS requires.
Third, the temporal element (“on or after 12 November 2025”) has direct implications for tax computation, amended assessments, and filing positions. If interest payments straddle the cut-off date, practitioners must carefully allocate amounts and ensure that only qualifying interest is claimed as exempt.
Finally, the specificity of the underlying properties and entities suggests that this Order is not intended as a reusable template for other assets or future restructurings. If the REIT’s French portfolio changes, or if the financing structure is modified, the exemption may not automatically extend. Legal teams should therefore treat the Order as asset- and structure-specific, and consider whether further approvals or updated exemption orders would be required.
Related Legislation
- Income Tax Act 1947 (including section 13(12), the enabling provision for this exemption order)
Source Documents
This article provides an overview of the Income Tax (Parkway Life Real Estate Investment Trust — 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.