Singapore legislation
Regulation 46A
Regulation 46A
Unclaimed accrual elections
Subregulation 1
The filing entity of an MNE group may, for any increase in a deferred tax liability that would be (if not for regulation 11) reflected in the FANIL of a constituent entity of an MNE group for a financial year, make an election in a GloBE information return (whether filed in Singapore or in another jurisdiction) in accordance with the GloBE rules (and in particular the guidance in Chapter 1 of the June 2024 Administrative Guidance) to either —
not include the increase in the qualifying deferred tax expense of that constituent entity for that financial year if the increase is not expected to be reversed before the end of the fifth financial year after that financial year; or
not include the increase in the qualifying deferred tax expense of that constituent entity for that financial year if the deferred tax liability is tracked on the basis of a general ledger account, or is tracked within an aggregate deferred tax liability category to which the deferred tax liability belongs, whether or not the increase is expected to be reversed before the end of the fifth financial year after that financial year.
Subregulation 2
Where an election mentioned in paragraph (1)(b) (called in this regulation a paragraph (1)(b) election) is made for an increase in a deferred tax liability (DTL1), a paragraph (1)(b) election (called in this regulation a follow-up paragraph (1)(b) election) must be made for that financial year and at least the next 4 financial years for any increase in DTL1 or another deferred tax liability of that constituent entity that is tracked on the basis of the same general ledger account or within the same aggregate deferred tax category, and such election is treated as having been made even if not made.
Subregulation 3
Paragraph (2) does not apply in a case where the firstmentioned paragraph (1)(b) election in that paragraph is a follow-up paragraph (1)(b) election.
Subregulation 4
Where a follow-up paragraph (1)(b) election is not made in respect of that constituent entity for any financial year (FYX) after the last financial year mentioned in paragraph (2) (FY5), FYX being the first financial year after FY5 that such election is not made in respect of that constituent entity, then a paragraph (1)(b) election must not be made in respect of that constituent entity for FYX and any of the next 4 financial years after FYX, and any such election has no effect.
Subregulation 5
In this regulation —
Definition
“aggregate deferred tax liability category” means a category of deferred tax liabilities determined in relation to 2 or more general ledger accounts, consistent with the chart of accounts used for the purposes of preparing the financial statements of an entity, where those general ledger accounts fall under the same balance sheet account or sub-balance sheet account;
Definition
“general ledger account” means a single financial account in the chart of accounts used for the purposes of preparing the financial statements of an entity.