Singapore legislation
Regulation 34
Regulation 34
Election for excluded equity gains and losses to be included
Subregulation 1
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 that the excluded equity gains or losses specified in paragraph (3) of the constituent entities of the MNE group located in a jurisdiction are to be included in the FANIL of those constituent entities.
Subregulation 2
Where an election under paragraph (1) is effective for a financial year, the FANIL for that financial year of each of those constituent entities must be adjusted accordingly.
Subregulation 3
An election in paragraph (1) applies to the following excluded equity gains or losses of a constituent entity:
excluded equity gains or losses that are subject to covered taxes in the jurisdiction where the constituent entity is located;
excluded equity gains or losses (being changes in fair value of direct ownership interests in an entity or impairments on direct ownership interests in an entity) that are not subject to covered taxes if the gains or losses on the disposition of those direct ownership interests would be subject to covered taxes in the jurisdiction where the constituent entity is located.
Subregulation 4
Despite an election in paragraph (1), excluded equity gains or losses in respect of a qualified ownership interest (as defined in regulation 42(5)) owned by a constituent entity must not be included as income in the FANIL of a constituent entity.
Subregulation 5
A revocation of an election in paragraph (1) does not have effect in relation to the gains, profits or losses of a constituent entity arising from any direct ownership interests in another entity if —
a loss in respect of those direct ownership interests has been included in the GloBE income or loss of that constituent entity for any financial year; and
that loss would otherwise have been excluded under regulation 14,and accordingly, the election in paragraph (1) continues to apply to gains, profits and losses in respect of those direct ownership interests.
Subregulation 6
An election under paragraph (1) 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 7
If an election under paragraph (1) 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 entities located in that jurisdiction for that or any of the subsequent 4 financial years, and any such election has no effect.