Singapore legislation

Regulation 17

of Multinational Enterprise (Minimum Tax) Regulations 2024

Regulation 17

Exclusion of expenses for illegal payments, fines and penalties

Subregulation 1

Where the FANIL of a constituent entity of an MNE group for a financial year reflects —

(a)

expenses incurred for illegal payments; or

(b)

expenses incurred for fines or penalties of EUR 50,000 or more,the FANIL must be adjusted to exclude those expenses.

Subregulation 2

In paragraph (1)(a), a payment is illegal if the making of that payment is, or forms part of conduct which is, an offence under the law of —

(a)

the jurisdiction where the constituent entity is located; or

(b)

the jurisdiction where the ultimate parent entity is located.

Subregulation 3

In paragraph (1)(b), where more than one fine or penalty is accrued in respect of the same conduct, or for continuing conduct, those fines or penalties must be aggregated.