Singapore legislation
Regulation 13
Regulation 13
Exclusion of excluded dividends
Subregulation 1
Subject to paragraphs (2) and (3), the FANIL of a constituent entity of an MNE group for a financial year must be adjusted to exclude any amount of excluded dividends received or accrued by that constituent entity.
Subregulation 2
The following are not to be excluded under paragraph (1):
a dividend or other distribution paid by another constituent entity of that MNE group that is treated as an expense in that constituent entity’s FANIL;
a dividend or other distribution paid on an interest in an entity that is a debt interest;
a dividend or other distribution paid in respect of additional tier one capital (as defined in regulation 24(3)).
Subregulation 3
The filing entity of an MNE group may make an election in a GloBE information return (whether filed in Singapore or in another jurisdiction) in accordance with the GloBE rules for all the dividends or other distributions received or accrued by any constituent entity of that MNE group for a financial year from its portfolio shareholdings not to be treated as excluded dividends for the purpose of this regulation.
Subregulation 4
An election under paragraph (3) must not be revoked for the financial year for which it is made or for any of the subsequent 4 financial years, and any such revocation has no effect.
Subregulation 5
If an election under paragraph (3) is revoked for a financial year, another election under that paragraph must not be made (whether in Singapore or in another jurisdiction) in respect of the constituent entity for that or any of the subsequent 4 financial years, and any such election has no effect.
Subregulation 6
In paragraph (2)(b), “debt interest”, in relation to an entity, means an interest that is economically a debt obligation of the entity, and that is not an ownership interest in the entity.