Multinational Enterprise (Minimum Tax) Regulations 2024
Table of Contents
Enacting Formula
Part 1 PRELIMINARY
1 Citation and commencement
2 General definitions
3 Application of Parts in determining top-up amounts of entities for Part 3 of Act
Part 2 ADJUSTMENTS TO CONSOLIDATED GROUP REVENUE
4 Adjustments to consolidated group revenue
4A Computation of consolidated group revenue of MNE group formed by merger of 2 or more groups
4B Computation of consolidated group revenue of MNE group formed by merger involving entities not belonging to any group, etc.
4C Application of section 8(1) after demerger of MNE group
Part 3 USE OF CURRENCY
5 Conversion of amount into presentation currency
6 Conversion of amount in functional currency for DTT purposes
7 Conversion of amount into Singapore dollars
8 Conversion of amount not in presentation currency into presentation currency for comparison with euros amount
9 Conversion of amount in presentation currency into euros for comparison with euros amount
Part 4 ADJUSTMENTS TO FANIL AND GLOBE INCOME OR LOSS
Division 1 — Preliminary provisions
10 Purpose and application of this Part
11 FANIL adjusted to be before tax
12 FANIL must not reflect share acquisition adjustment
13 Exclusion of excluded dividends
14 Adjustments for excluded equity gain or loss
15 Included revaluation method gain or loss
16 Adjustments for asymmetric foreign exchange gains or losses
17 Exclusion of expenses for illegal payments, fines and penalties
18 Adjustment for changes in accounting policies and prior period errors
19 Accrued pension expense
20 Treatment of tax credits
21 Arm’s length requirement for certain transactions
22 Adjustments for insurers
23 Exclusion of intra-group financing arrangement expenses
24 Additional tier one capital
25 Exclusion of international shipping income and ancillary international shipping income
Division 2 — Adjustments in relation to permanent establishments and flow-through entities
26 Adjustment for main entity
27 Allocation of loss to main entity
28 Adjustment for constituent entity owners of flow-through entity
Division 3 — Optional adjustments
29 Election for company in distress
30 Election to use realisation principle
31 Election to reflect deductions for stock-based compensation
32 Election to recognise gains over 5 years
33 Election to exclude intra-group transactions
34 Election for excluded equity gains and losses to be included
35 Election for foreign exchange risk hedges
36 Election where assets and liabilities adjusted to fair value for tax purposes
Part 5 ADJUSTMENTS TO QUALIFYING CURRENT TAX EXPENSES, QUALIFYING DEFERRED TAX EXPENSES AND ADJUSTED COVERED TAXES
37 Purpose and application of this Part
38 Amounts excluded from qualifying current tax expense
39 Amounts taken into account in qualifying current tax expense
40 Post-filing adjustments and tax rate changes
41 Non-marketable transferable tax credits
42 Qualified flow-through tax benefits
Division 2 — Allocation of covered taxes
43 Permanent establishments
44 Reallocation of tax expenses
44A Blended CFC allocation key
Division 3 — Deferred taxes and other adjustments
45 Adjustments to qualifying deferred tax expense
46 Recaptured deferred tax liabilities
47 GloBE loss election
48 Deemed distribution tax election
Division 4 — Modifications for DTT purposes
49 Modifications in relation to Part 3 of Act
Part 6 ADJUSTMENTS TO SUBSTANCE-BASED INCOME EXCLUSION
50 Definitions for this Part
51 Application of this Part
52 Exclusion from eligible payroll costs
53 Adjustment to substance-based income exclusion due to assets being used to derive only international shipping income, etc.
54 Adjustment to substance-based income exclusion due to eligible employees performing activities in and outside constituent entity’s jurisdiction
55 Adjustment to substance-based income exclusion due to eligible tangible assets being located in and outside constituent entity’s jurisdiction
56 Inclusion of certain properties as eligible tangible assets
57 Eligible payroll costs and eligible tangible assets of permanent establishment
Part 7 MNE GROUP REORGANISATIONS AND TRANSFER OR ACQUISITION OF ASSETS AND LIABILITIES
58 Purpose and application of this Part
59 Constituent entity joining or leaving MNE group
60 When transfer of controlling interest treated as acquisition and disposal of assets and liabilities
61 Transfer of assets or liabilities
Part 7A MULTI-PARENT GROUP
61A Specified types of arrangement for "multi-parent group"
61B Application of Part 2 of Act to multi-parent groups
61C Application of regulations 61A and 61B to multi-parent groups for purpose of Part 3 of Act, etc.
Part 8 INVESTMENT ENTITIES AND INSURANCE INVESTMENT ENTITIES
62 Application of this Part
63 Investment entity and insurance investment entity tax transparency election
64 Taxable distribution method election
Part 9 GLOBE SAFE HARBOUR
65 Application of this Part
Division 2 — Transitional CbCR safe harbour
66 Definitions for this Division
67 "Qualifying country-by-country report"
68 "Qualified financial statements"
69 Constituent entities eligible for Transitional CbCR Safe Harbour
70 Conditions for application of Transitional CbCR Safe Harbour
71 De minimis test
72 Simplified effective tax rate test
73 Routine profits test
74 Basis for determining whether de minimis test, etc., met
75 Adjustments
76 Further adjustments for certain arrangements
77 Application of this Division to joint ventures and JV subsidiaries
Division 3 — QDMTT Safe Harbour
78 Constituent entities eligible for QDMTT Safe Harbour
79 Elections for QDMTT Safe Harbour
80 Disqualifying conditions for constituent entities other than special entities
81 Disqualifying conditions for joint ventures and JV subsidiaries
82 Disqualifying conditions for investment entities or insurance investment entities
83 Disqualifying conditions for minority-owned constituent entities
Division 4 — Simplified calculations safe harbour
84 "Non-material constituent entity" or "NMCE"
85 Conditions for application of Simplified Calculations Safe Harbour
86 Simplified calculations for NMCE
Part 10 TRANSITION RULES
87 Application of this Part
88 "Transition year"
89 Deferred tax assets and liabilities must be taken into account in constituent entity’s adjusted covered taxes
90 Where deferred tax asset relates to a tax credit
91 Deferred tax asset not to be taken into account in certain circumstances
92 Value of deferred tax asset or liability, and computation of GloBE income or loss, in case of transfer of assets between constituent entities before transition year
93 Adjustments for DTT computation where there is new transition year
Part 11 MISCELLANEOUS PROVISIONS
94 Formula for determining top-up amounts of entities
95 Adjustments in computing "adjusted revenue" for de minimis exclusion
96 Qualified domestic minimum top-up taxes
97 Qualified IIR