Statute Details
- Title: Income Tax (Approved Banks) Order 1998
- Act Code: ITA1947-S376-1998
- Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Enacting power: Section 13(9) of the Income Tax Act
- Commencement: Deemed to have come into operation on 26 June 1998
- Order number: No. S 376
- Key provisions (as extracted): Sections 1–3
- Current status (per extract): Current version as at 27 March 2026
What Is This Legislation About?
The Income Tax (Approved Banks) Order 1998 is a short but legally significant instrument made under the Income Tax Act (Chapter 134). In practical terms, it identifies a specific financial institution—UBS AG—as an “approved bank” for the purposes of the Income Tax Act. This designation matters because the Income Tax Act contains tax rules that apply differently to “approved banks” than to other banks or financial institutions.
Although the Order itself is brief, it performs two important functions. First, it confers a statutory status on UBS AG by approving it as an “approved bank”. Second, it amends the earlier “Income Tax (Approved Banks) (Consolidation) Order” by removing outdated entries. This ensures that the approved-bank list remains accurate and legally effective.
For practitioners, the key point is that this Order operates as a gateway document: it does not create a general tax regime by itself, but it triggers the application of provisions in the Income Tax Act that refer to “approved banks”. Understanding the Order therefore requires reading it alongside the relevant section(s) of the Income Tax Act—particularly section 13, which is the authorising and reference point in the extract.
What Are the Key Provisions?
Section 1: Citation and commencement
Section 1 provides the formal name of the instrument (“Income Tax (Approved Banks) Order 1998”) and sets the commencement date. The Order is “deemed to have come into operation on 26th June 1998”. The phrase “deemed to have come into operation” is legally important: it means the Order’s effect is treated as starting from that earlier date, even though the Order was made later (as reflected by the “Made this 14th day of July 1998” signing date in section 3’s concluding lines).
From a compliance perspective, this can affect how tax positions are assessed for the period between 26 June 1998 and the date the Order was formally made. If the Income Tax Act’s approved-bank provisions have consequences for that period (for example, eligibility for a particular tax treatment), the deemed commencement date can be relevant in disputes, audits, or retrospective adjustments.
Section 2: Approved bank
Section 2 is the substantive designation provision. It states that “UBS AG is hereby approved as an ‘approved bank’ for the purposes of section 13(1)(t) of the Act.” This is the core legal effect of the Order.
Two drafting features are worth noting. First, the approval is expressly tied to “section 13(1)(t)” of the Income Tax Act. That means the approved-bank status is not merely a general label; it is linked to a particular provision within section 13(1). Second, the Order uses the statutory term “approved bank” in quotation marks, indicating that the term has a defined meaning in the Income Tax Act framework and that this Order is one of the mechanisms by which the Minister for Finance designates entities to meet that definition.
Section 3: Amendment of Consolidation Order
Section 3 amends the “Income Tax (Approved Banks) (Consolidation) Order (O 32)”. Consolidation orders typically compile and restate earlier approvals and designations. Over time, entries may become obsolete due to corporate restructuring, mergers, or changes in the approved-bank list.
In the extract, section 3 makes two specific amendments:
- Paragraph (a): It deletes words in item (11), removing an entry referring to “Swiss Bank Corporation” dated “30th April 1975”.
- Paragraph (b): It deletes item (28) entirely.
These deletions serve a legal housekeeping function: they remove outdated or superseded approvals so that the consolidation instrument reflects the current approved-bank position. For practitioners, this is important because a consolidation order may be the document relied upon in day-to-day tax administration. If outdated entries remain, they can create confusion about eligibility or lead to incorrect assumptions about which entities are currently “approved banks”.
Practical implications of the amendments
Even though the Order’s extract does not specify the content of item (28), the deletion indicates that the approved-bank list is being revised. In practice, such revisions often follow corporate events (e.g., mergers or name changes) or policy updates. The legal effect is that the consolidation order will no longer list the removed entities/items, while UBS AG will be recognised under the approved-bank framework.
How Is This Legislation Structured?
The Income Tax (Approved Banks) Order 1998 is structured as a short subsidiary legislation instrument with three sections:
- Section 1 (Citation and commencement): sets the name and the deemed commencement date.
- Section 2 (Approved bank): designates UBS AG as an “approved bank” for the purposes of section 13(1)(t) of the Income Tax Act.
- Section 3 (Amendment of Consolidation Order): amends the Income Tax (Approved Banks) (Consolidation) Order (O 32) by deleting specified entries.
There are no schedules or complex procedural provisions in the extract. The instrument is therefore best understood as a targeted designation and update mechanism rather than a comprehensive regulatory code.
Who Does This Legislation Apply To?
On its face, the Order applies to the entity it approves: UBS AG. However, its legal relevance extends beyond UBS AG because the designation is made “for the purposes of section 13(1)(t)” of the Income Tax Act. That means the tax consequences of being an “approved bank” will flow to UBS AG wherever section 13(1)(t) is engaged.
In addition, the Order indirectly affects other parties who rely on the approved-bank list—such as tax practitioners advising banks, internal compliance teams, auditors, and tax authorities—because it amends the consolidation order by deleting outdated entries. While those parties are not “addressees” of the Order in the way UBS AG is, they are affected in the sense that the legal reference point for approved-bank status changes.
Why Is This Legislation Important?
Despite its brevity, this Order is important because it determines eligibility for a specific tax treatment under the Income Tax Act. In Singapore’s tax system, the term “approved bank” is not merely descriptive; it is a statutory category that can influence how income is computed, how certain deductions or exemptions apply, or how particular tax rules are triggered. Therefore, the designation of UBS AG can have material financial consequences.
From an enforcement and compliance perspective, the Order also illustrates how Singapore maintains the accuracy of statutory lists through subsidiary legislation. The amendment to the consolidation order ensures that the approved-bank register is kept current. This reduces the risk of administrative error and supports consistent application of tax rules across time.
For practitioners, the most practical takeaway is to treat this Order as a “linking instrument” that must be read with the Income Tax Act—especially section 13(1)(t). When advising on tax positions, eligibility, or historical treatment, counsel should confirm (i) whether the entity is currently listed as an approved bank, (ii) whether the relevant approval is tied to the specific subsection referenced in the Order, and (iii) whether consolidation amendments have removed or replaced earlier entries.
Related Legislation
- Income Tax Act (Chapter 134) (including section 13, particularly section 13(1)(t) and section 13(9))
- Income Tax (Approved Banks) (Consolidation) Order (O 32)
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.