Singapore legislation
Regulation 44B
Regulation 44B
Cross-border allocation of current tax expenses under cross-crediting regimes
Subregulation 1
Where the qualifying current tax expense of a constituent entity of an MNE group in a jurisdiction in which a cross-crediting regime applies —
is to be allocated to another constituent entity of the MNE group in another jurisdiction pursuant to regulation 44(1), (4), (5) or (5A); or
is to be treated as the qualifying current tax expense of a permanent establishment of the firstmentioned constituent entity in another jurisdiction pursuant to paragraph 1(4) of the First Schedule to the Act, the allocation and treatment must be in accordance with the cross-crediting regime methodology.
Subregulation 2
Where the cross-crediting regime that applies in the jurisdiction allows only for cross-crediting within particular categories of income, the cross-crediting regime methodology is to be applied to individual categories of income to determine the allocation of qualifying current tax expense within each category.
Subregulation 3
A cross-crediting regime applies in a jurisdiction if, under the laws of that jurisdiction, taxes paid with respect to one source of income arising in another jurisdiction give rise to foreign tax credits which can be used against another source of income arising in a further jurisdiction.
Subregulation 4
In this regulation, “cross-crediting regime methodology” means the methodology described in the cross-crediting guidance set out in Chapter 3.1 of the June 2024 Administrative Guidance, which applies to this regulation with all necessary modifications.