Statute Details
- Title: Income Tax (Sasseur Bishan HK Limited — Section 13(12) Exemption) (No. 2) Order 2024
- Act Code: ITA1947-S389-2024
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act 1947
- Enacting Formula / Power: Made in exercise of powers conferred by section 13(12) of the Income Tax Act 1947
- SL Citation: SL 389/2024
- Date Made: 30 April 2024
- Commencement: Applies to interest income received on or after 1 March 2024
- Status: Current version as at 27 Mar 2026
- Key Provisions: Section 1 (Citation); Section 2 (Exemption and conditions)
What Is This Legislation About?
The Income Tax (Sasseur Bishan HK Limited — Section 13(12) Exemption) (No. 2) Order 2024 is a targeted tax exemption order made under Singapore’s Income Tax Act 1947. In practical terms, it grants a specific exemption from Singapore income tax for certain interest income received in Singapore by a particular company: Sasseur Bishan HK Limited, which is incorporated in Hong Kong.
The exemption is not a general relief available to all taxpayers. It is narrowly framed around (i) the type of income (interest), (ii) the source and counterparty (interest arising from a loan to be paid by a specified PRC company), and (iii) the time period (interest received on or after 1 March 2024). The order also makes the exemption conditional on requirements set out in a separate letter from the Ministry of Finance.
For practitioners, this order is best understood as an administrative instrument that operationalises a statutory power in section 13(12) of the Income Tax Act 1947. It demonstrates how Singapore can grant bespoke tax treatment for cross-border financing arrangements, typically where policy considerations and compliance safeguards justify an exemption.
What Are the Key Provisions?
Section 1 (Citation) is straightforward. It identifies the order by its formal name: the “Income Tax (Sasseur Bishan HK Limited — Section 13(12) Exemption) (No. 2) Order 2024”. This is standard for subsidiary legislation and helps with referencing in tax filings, correspondence, and legal submissions.
Section 2 (Exemption) contains the substantive relief. The exemption is structured in three layers: (1) what income is exempt, (2) which underlying loan arrangements qualify, and (3) what conditions must be met.
First, the exemption applies to “interest income described in sub-paragraph (2)” that is received in Singapore by Sasseur Bishan HK Limited. The order specifies that the recipient is a Hong Kong incorporated company, and the interest must be received in Singapore. This “received in Singapore” element is important: it ties the exemption to the Singapore tax nexus for the income, rather than merely to the place where the loan is made or where the payer is located.
Second, the order specifies the relevant counterparty and timing. The interest income must be received from Chongqing Sasseur Suge Apparel Joint Stock Co., Ltd., a company incorporated in the People’s Republic of China. The exemption applies to interest received on or after 1 March 2024. This means that interest received before that date would not fall within the exemption under this particular order, even if it relates to the same broader financing relationship.
Third, the qualifying interest is linked to specific loan agreements. Sub-paragraph (2) narrows the exemption to interest arising from the loan granted under agreements dated 20 March 2018, 15 September 2018, and 5 July 2020 between the same two companies (Sasseur Bishan HK Limited and Chongqing Sasseur Suge Apparel Joint Stock Co., Ltd.). For tax practitioners, this is a critical evidentiary point: the exemption is not for “any interest” paid by the PRC company, but only for interest connected to those particular agreements. Where multiple facilities exist, or where amendments/novations occur, careful document mapping is required to determine whether the interest remains within the scope of the specified agreements.
Fourth, the exemption is conditional. Sub-paragraph (3) states that the exemption in sub-paragraph (1) is subject to the conditions specified in the letter from the Ministry of Finance dated 24 April 2024 and addressed to EY Corporate Advisors Pte. Ltd. This is a significant legal feature: the statutory exemption is not self-contained in the order alone. Instead, it incorporates by reference an external set of conditions. Practically, counsel should obtain and review the referenced MoF letter (or ensure it is available through the client’s tax file) because failure to satisfy those conditions could jeopardise the exemption.
Finally, the order is made by the Minister for Finance (Second Permanent Secretary, Ministry of Finance) on 30 April 2024. The order’s effective scope (interest received on or after 1 March 2024) indicates that the relief is intended to cover a period that begins before the order was made, which is common in tax administration where relief is applied retrospectively within defined limits.
How Is This Legislation Structured?
This order is a short subsidiary instrument with a simple structure:
Section 1 provides the citation (the formal name of the order).
Section 2 sets out the exemption. It is divided into sub-paragraphs (1) to (3), which collectively define:
- the income type (interest income);
- the recipient (Sasseur Bishan HK Limited);
- the payer/source (Chongqing Sasseur Suge Apparel Joint Stock Co., Ltd.);
- the time window (interest received on or after 1 March 2024);
- the qualifying loan agreements (agreements dated 20 March 2018, 15 September 2018, and 5 July 2020); and
- the conditions (as specified in the MoF letter dated 24 April 2024).
Notably, the order does not include detailed procedural rules (e.g., filing requirements or documentation standards). Those are typically handled through the Income Tax Act framework and administrative practice, while the specific conditions are incorporated via the referenced MoF letter.
Who Does This Legislation Apply To?
The exemption applies to Sasseur Bishan HK Limited—and only in respect of the specified interest income. The order is therefore person-specific and transaction-specific. Even though it is made under a general statutory power (section 13(12) of the Income Tax Act 1947), the operative relief is limited to the named recipient and the named PRC payer.
In addition, the exemption is limited by the underlying loan agreements and the date of receipt. Accordingly, the practical scope is: interest received in Singapore by Sasseur Bishan HK Limited from the specified Chongqing company, arising from the specified loan agreements, and received on or after 1 March 2024—provided that the conditions in the MoF letter dated 24 April 2024 are satisfied.
Why Is This Legislation Important?
For corporate tax practitioners, this order is important because it illustrates how Singapore’s tax system can provide bespoke relief for cross-border financing arrangements. Interest income is often a key component of group financing structures. By granting an exemption, the order can materially affect the effective tax cost of servicing debt and repatriating returns within a group.
From a compliance and risk perspective, the order’s conditional nature is equally important. The exemption is not merely a matter of identifying the interest and the parties; it is also contingent on meeting conditions specified in a separate Ministry of Finance letter. In practice, this means that counsel should treat the MoF letter as part of the legal basis for the exemption and ensure that the client’s documentation, reporting, and contractual arrangements align with those conditions.
Finally, the order’s “on or after 1 March 2024” timing highlights a common issue in tax planning and dispute avoidance: effective dates. Where interest accrues over time, but is received at particular dates, the exemption may apply only to receipts after the specified threshold. Practitioners should therefore review payment schedules, bank receipt dates, and accounting treatment to ensure that the exemption is claimed only for qualifying amounts.
Related Legislation
- Income Tax Act 1947 (particularly section 13(12))
- Income Tax Act 1947 (general framework for chargeability, exemptions, and administration)
- Legislation timeline (to confirm the correct version and effective date of SL 389/2024)
Source Documents
This article provides an overview of the Income Tax (Sasseur Bishan HK Limited — Section 13(12) Exemption) (No. 2) Order 2024 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.