Statute Details
- Title: Income Tax (Approved Banks) Order 1998
- Act Code: ITA1947-S376-1998
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Enacting Power: Section 13(9) of the Income Tax Act
- Citation: Income Tax (Approved Banks) Order 1998
- Deemed Commencement: 26 June 1998
- Date Made: 14 July 1998
- Key Provisions (as per extract): Sections 1–3
- Approved Bank Listed: UBS AG
- Amended Instrument: Income Tax (Approved Banks) (Consolidation) Order (O 32)
- Amendment Mechanism: Deletion of specified entries in the Consolidation Order
- Status (from extract): Current version as at 27 Mar 2026
What Is This Legislation About?
The Income Tax (Approved Banks) Order 1998 is a Singapore subsidiary legislation instrument that formally designates a particular financial institution as an “approved bank” for the purposes of the Income Tax Act. In practical terms, the Order is part of the tax administration framework that links specific tax treatment (or eligibility for certain tax provisions) to an entity’s status as an approved bank.
Although the Order itself is brief, its legal significance lies in its effect on the Income Tax Act’s operation. The Income Tax Act contains provisions that apply differently depending on whether a bank is an “approved bank”. By making this Order, the Minister for Finance exercises the statutory power to approve a bank and thereby bring that bank within the relevant tax regime.
The Order also performs a housekeeping function: it amends the Income Tax (Approved Banks) (Consolidation) Order (O 32). This ensures that the approved-bank list remains accurate and up to date, including by removing outdated entries and inserting or reflecting the correct approved entity.
What Are the Key Provisions?
Section 1 (Citation and commencement) provides the formal identity of the instrument and its effective date. The Order may be cited as the Income Tax (Approved Banks) Order 1998. Importantly, it is “deemed to have come into operation on 26th June 1998”. For practitioners, the “deemed” commencement date can be crucial when determining whether tax treatment applies for a period prior to the date the instrument was made.
Section 2 (Approved bank) is the core operative provision. It states that UBS AG is approved as an “approved bank” for the purposes of section 13(1)(t) of the Income Tax Act. This is the legal bridge between the subsidiary legislation and the substantive tax provisions in the Act. Once the approval is in place, UBS AG can rely on its approved-bank status when applying the relevant Income Tax Act rules tied to that designation.
From a legal drafting and compliance perspective, the precision of the cross-reference matters. The Order does not merely approve UBS AG for “approved bank” status generally; it specifies the approval is for the purposes of section 13(1)(t). That means the approval’s relevance is anchored to that specific section and the conditions or benefits it provides. Lawyers advising on tax computations, eligibility, or interpretation of section 13(1)(t) should therefore treat the Order as the authoritative instrument establishing the bank’s status.
Section 3 (Amendment of Consolidation Order) amends the Income Tax (Approved Banks) (Consolidation) Order (O 32). The extract shows two specific amendments:
- Paragraph (a): it deletes certain words in item (11), namely the entry relating to “Swiss Bank Corporation” with the date “30th April 1975”.
- Paragraph (b): it deletes item (28) entirely.
These amendments indicate that the approved-bank list maintained in the Consolidation Order required updating. The deletion of an older entity name and the removal of an item suggest either a corporate restructuring, a change in the approved entity, or a correction of the list to reflect the current approved status. For practitioners, this is a reminder that approved-bank status is not only about the new approval (UBS AG) but also about ensuring the consolidated list does not contain obsolete or superseded entries.
Finally, the Order includes the formal “Made” clause: it was made on 14th day of July 1998 by the Permanent Secretary, Ministry of Finance, Singapore (NGIAM TONG DOW). While this is procedural, it can matter for verifying validity and proper exercise of the enabling power.
How Is This Legislation Structured?
The Income Tax (Approved Banks) Order 1998 is structured as a short subsidiary legislation instrument with three sections. The structure is typical of orders that perform targeted administrative functions:
Section 1 deals with citation and commencement (including deemed operation). Section 2 identifies the approved bank (UBS AG) and ties that approval to a specific Income Tax Act provision (section 13(1)(t)). Section 3 amends a separate consolidated instrument (O 32), ensuring the approved-bank list remains current.
There are no “Parts” or detailed schedules in the extract provided; the operative content is contained entirely within the three sections. The amendment to the Consolidation Order is embedded directly in section 3 through deletion instructions, rather than through a full restatement of the list.
Who Does This Legislation Apply To?
The Order applies to UBS AG as the approved bank designated by section 2. In legal effect, the Order is relevant to UBS AG’s tax position insofar as the Income Tax Act provisions tied to “approved bank” status (specifically section 13(1)(t)) require or assume such approval.
More broadly, the Order is also relevant to tax administrators and advisers who must determine whether a bank qualifies as an “approved bank” for the purposes of the Income Tax Act. While the Order names only one bank, the amendment to the Consolidation Order affects the wider administrative record of approved banks. Therefore, the Order has implications for any party that consults the consolidated list when assessing tax treatment or compliance obligations.
Why Is This Legislation Important?
Even though the Income Tax (Approved Banks) Order 1998 is short, it is legally important because it determines eligibility for a tax-related status under the Income Tax Act. In Singapore tax practice, “approved” designations often serve as gatekeeping mechanisms: they can affect how certain income is treated, what deductions or exemptions may be available, or how specific tax rules are applied. By approving UBS AG, the Order enables the bank to access the tax consequences linked to section 13(1)(t).
For practitioners, the deemed commencement date (26 June 1998) is a practical detail that can affect the timing of tax treatment. If tax computations, filings, or assessments relate to periods around mid-1998, counsel may need to consider whether the approved-bank status applies retroactively by virtue of the “deemed to have come into operation” wording.
The amendment to the Consolidation Order is also significant. Consolidation instruments are commonly used as the authoritative reference point for approved entities. If outdated entries remain, there is a risk of confusion, misapplication, or disputes over whether a particular institution is still approved. By deleting the “Swiss Bank Corporation” entry dated 30 April 1975 and removing item (28), the Order clarifies the approved-bank list and supports consistent administration.
Finally, the Order illustrates the administrative process by which the Minister for Finance updates tax-related designations. Lawyers advising financial institutions should note that approved-bank status can be changed through subsidiary legislation, and that such changes may be reflected through amendments to consolidated orders rather than through entirely new lists.
Related Legislation
- Income Tax Act (Chapter 134) — in particular section 13(1)(t) and the enabling power in section 13(9)
- Income Tax (Approved Banks) (Consolidation) Order (O 32) — amended by section 3 of this Order
- Legislation Timeline — for verifying the correct version as at the relevant date (noted in the extract as current version as at 27 Mar 2026)
Source Documents
This article provides an overview of the Income Tax (Approved Banks) Order 1998 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.