Statute Details
- Title: Income Tax (Approved Banks) (No. 7) Order 1997
- Act Code: ITA1947-S453-1997
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Enacting Power: Section 13(9) of the Income Tax Act
- Enacting Formula / Key Mechanism: Approves a specified financial institution as an “approved bank” for Income Tax Act purposes
- Citation: “Income Tax (Approved Banks) (No. 7) Order 1997”
- Approved bank (named in the Order): Chang Hwa Commercial Bank Ltd
- Effective date: 16 October 1997
- Date made: 26 September 1997
- Maker: Permanent Secretary, Ministry of Finance (Ngiam Tong Dow)
- Status: Current version as at 27 March 2026 (per the provided extract)
What Is This Legislation About?
The Income Tax (Approved Banks) (No. 7) Order 1997 is a short piece of subsidiary legislation made under the Income Tax Act (Chapter 134). Its central purpose is to designate a particular bank—Chang Hwa Commercial Bank Ltd—as an “approved bank” for the purposes of the Income Tax Act.
In practical terms, the Order does not itself set out a tax rate or compute tax. Instead, it operates as a legal “gateway” document. Certain tax treatments under the Income Tax Act apply only to banks that have been formally approved. By issuing this Order, the Minister for Finance (exercising powers under section 13(9)) confirms that the named bank meets the statutory requirement to be treated as an approved bank.
Because the Order is tied to a specific bank and a specific effective date (16 October 1997), it is best understood as part of a continuing administrative and legislative framework. Over time, multiple “Approved Banks” Orders may be issued to add banks to the approved list, update their status, or reflect changes in the regulatory and tax environment.
What Are the Key Provisions?
Section 1 (Citation) provides the formal name by which the Order may be cited. This is standard drafting: it ensures that practitioners, banks, and tax authorities can refer to the instrument unambiguously in correspondence, filings, and legal submissions.
Section 2 (Approved bank) is the operative provision. It states that Chang Hwa Commercial Bank Ltd is “hereby approved as an ‘approved bank’” for the purposes of section 13(1)(t) of the Income Tax Act. The phrase “for the purposes of section 13(1)(t)” is critical: it links the approval to a specific tax provision within the parent Act. Without this approval, the bank would not be eligible to claim whatever tax treatment section 13(1)(t) provides (or would not be treated as falling within the relevant category).
Section 2 also specifies the effective date: “with effect from 16th October 1997.” This matters for tax years and assessments. Where tax treatment depends on whether an institution is an approved bank at a particular time, the effective date determines the period during which the bank can rely on the approval. For example, if a relevant transaction or accounting period spans dates before and after 16 October 1997, practitioners typically need to consider whether the approval applies to the relevant portion of the period, and how the tax computation provisions in section 13(1)(t) operate.
Finally, the Order includes the making clause and signature. It records that it was made on 26 September 1997 by the Permanent Secretary, Ministry of Finance, Singapore. This provides formal validity and indicates that the approval was issued through the proper statutory channel under the authorising power in section 13(9) of the Income Tax Act.
How Is This Legislation Structured?
This Order is extremely concise and consists of two substantive provisions:
(1) Citation (Section 1): establishes the formal short title of the instrument.
(2) Approved bank (Section 2): identifies the approved bank and sets the effective date, while expressly tying the approval to section 13(1)(t) of the Income Tax Act.
There are no schedules, no detailed procedural requirements, and no administrative provisions in the extract provided. The structure reflects the nature of “approved bank” Orders: they are typically targeted instruments that confer a status on a named institution rather than create a comprehensive regulatory regime.
Who Does This Legislation Apply To?
The Order applies directly to Chang Hwa Commercial Bank Ltd, as the bank that is expressly approved. The approval is for the purposes of section 13(1)(t) of the Income Tax Act. Accordingly, the bank’s eligibility for any tax treatment linked to that provision depends on the approval being in force during the relevant time.
Indirectly, the Order also affects tax administration and tax practitioners dealing with the bank’s income tax computations. For the Inland Revenue Authority of Singapore (IRAS) and for the bank, the existence of the Order is evidence that the statutory condition of being an “approved bank” has been satisfied for the specified effective date. In disputes or audits, the Order would typically be part of the documentary basis for determining whether the bank can apply the relevant tax treatment under the Income Tax Act.
Why Is This Legislation Important?
Although the Income Tax (Approved Banks) (No. 7) Order 1997 is brief, it can be highly significant in tax practice. Many tax outcomes in Singapore depend on whether a taxpayer falls within a defined category. Here, the category is “approved bank,” and the Order is the legal instrument that places the named bank into that category for the purposes of a specific section of the Income Tax Act.
From a practitioner’s perspective, the importance lies in certainty and eligibility. When preparing tax computations, advising on tax positions, or responding to IRAS queries, lawyers and tax professionals need to confirm that the statutory prerequisites for a favourable or specific tax treatment are met. The Order provides that confirmation in a form that is legally authoritative.
Second, the effective date is crucial. Tax computations often operate on annual or accounting-period bases, and eligibility may change over time. By specifying that the approval takes effect from 16 October 1997, the Order helps determine the timeframe during which the bank can rely on its approved status. This can affect how income is characterised, how deductions or exemptions are applied, and how any relevant computations under section 13(1)(t) are performed.
Third, the Order illustrates how Singapore’s tax framework uses subsidiary legislation to implement policy decisions. Rather than embedding every approved institution directly in the Income Tax Act itself, the Act delegates to the Minister for Finance the power to make Orders approving banks. This allows the tax system to be updated efficiently as institutions qualify, restructure, or meet administrative criteria.
Related Legislation
- Income Tax Act (Chapter 134) — in particular:
- Section 13(9) (authorising power to make “approved bank” Orders)
- Section 13(1)(t) (the Income Tax Act provision for which “approved bank” status is relevant)
- Income Tax (Approved Banks) Orders (other numbers) — other subsidiary instruments that may approve different banks or update approved status
- Legislation Timeline / Versioning materials — to confirm the correct version as at the relevant date (noting the extract indicates “current version as at 27 Mar 2026”)
Source Documents
This article provides an overview of the Income Tax (Approved Banks) (No. 7) Order 1997 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.