Clause 57

after subsection (1), insert —“(1A) In this Act, an entity that is not a tax resident of any jurisdiction, and is not subject to DTT (if it is established, formed, incorporated or registered under the laws of Singapore), or any covered tax or qualified domestic minimum top‑up tax in the jurisdiction under whose laws it is established, formed, incorporated or registered, is also a “flow‑through entity” to the extent that —

it is fiscally transparent with respect to any of its income, expenditure, profit or loss that is attributable to any holder of ownership interests in it, under the laws of the jurisdiction where that holder is located;

it does not have a place of business in the jurisdiction under the laws of which it is established, formed, incorporated or registered; and

its income, expenditure, profit or loss is not attributable to a permanent establishment.”; and

replace subsections (2) and (3) with —“(2) In this Act, a flow‑through entity (A) is a “reverse hybrid entity” with respect to any of its income, expenditure, profit or loss that is attributable to its reference entity (B), if A, or any flow‑through entity through which B holds its ownership interest in A, is not fiscally transparent with respect to that income, expenditure, profit or loss under the law of the jurisdiction where B is located.(3) In this Act, an entity (X) is “fiscally transparent” with respect to any of its income, expenditure, profit or loss, or that of another entity in which X holds ownership interest, under the law of a jurisdiction if that law treats the income, expenditure, profit or loss as if it were derived or incurred by a direct owner of X in proportion to that owner’s interest in X.”.