Singapore legislation
Regulation 2
of Income Tax (Provisions by Banks) (Definition of Loan) Rules
Regulation 2
Exclusion of certain advances from definition of loan
For the purposes of paragraph (e) of the definition of “loan” in section 14I(6) of the Act, “loan” means any loan or advance made or granted by a bank, including an overdraft, except for any advance made on the discounting or purchase of any bill of exchange which —
(a)
is denominated in Singapore dollars and accepted or endorsed by any bank in Singapore;
(b)
arises from a genuine trade transaction and is payable within 3 months of acceptance or endorsement; and
(c)
qualifies as a liquid asset under Notice to Banks MAS 613 issued by the Monetary Authority of Singapore pursuant to section 39 of the Banking Act [Cap. 19].