Singapore legislation

Regulation 2

of Income Tax (Provisions by Banks and Qualifying Finance Companies) (Advance that is not Loan) Rules 2024

Regulation 2

Exclusion of certain advances under section 14G(6AB)(a)(v) of Act

Subregulation 1

For the purposes of section 14G(5) and (6) of the Act, a reference to a loan does not include an advance made on the discounting or purchase of any bill of exchange by a bank or qualifying finance company 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 —

(i)

for banks licensed in Singapore —– under paragraph 8 of the notice commonly known as MAS Notice 649, issued by the Monetary Authority of Singapore, as amended from time to time;

(ii)

for merchant banks licensed in Singapore —– under paragraph 8 of the notice commonly known as MAS Notice 1015, issued by the Monetary Authority of Singapore, as amended from time to time; and

(iii)

for qualifying finance companies —– under paragraph 2 of the notice commonly known as MAS Notice 806, issued by the Monetary Authority of Singapore, as amended from time to time.

Subregulation 2

For the purpose of this rule, “bank”, “Monetary Authority of Singapore” and “qualifying finance company” have the meanings given by section 14G(7) of the Act.