Singapore legislation
Regulation 47
Regulation 47
GloBE loss election
Subregulation 1
The filing entity of an MNE group may elect in a GloBE information return (whether filed in Singapore or in another jurisdiction) in accordance with the GloBE rules that the treatment in this regulation applies to all the constituent entities of the MNE group located in a jurisdiction.
Subregulation 2
An election under paragraph (1) —
must be made for the transition year of any constituent entity located in that jurisdiction; and
cannot be made for a jurisdiction that has an eligible distribution tax system (as defined in paragraph 1(7) of the First Schedule to the Act).
Subregulation 3
Where an election is effective for a financial year —
none of the constituent entities located in the jurisdiction for which the election is made is treated as having any qualifying deferred tax expense for that financial year; and
if the sum of the GloBE income or loss for that financial year of those constituent entities is nil or less, that amount multiplied by 15% is the “special loss deferred tax asset” of those constituent entities for the purposes of this regulation.
Subregulation 4
Where an election is effective for a financial year and —
the sum of the GloBE income or loss for that financial year of the constituent entities located in a jurisdiction for which the election is made is a positive amount; and
those constituent entities have any special loss deferred tax asset from a previous financial year that has not been used,an amount of that special loss deferred tax asset must be used to increase the qualifying current tax expense of the constituent entities with a positive amount of GloBE income or loss for that financial year.
Subregulation 5
The amount of the special loss deferred tax asset that is to be used in paragraph (4) is the lower of —
the amount of the special loss deferred tax asset; and
the sum of the GloBE income or loss for that financial year of those constituent entities multiplied by 15%,and any amount of the special loss deferred tax asset remaining unused remains available for use in a subsequent financial year.
Subregulation 6
Any special loss deferred tax asset used in paragraph (4) must be allocated between the constituent entities with a positive amount of GloBE income or loss for the financial year in proportion to the amounts of their GloBE income or loss.
Subregulation 7
If an election under paragraph (1) is revoked for the constituent entities located in a jurisdiction, any special loss deferred tax asset of those constituent entities remaining unused on the first day of the first financial year for which the election is revoked is reduced to nil.
Subregulation 8
If the ultimate parent entity of the MNE group is a flow-through entity that is located in that jurisdiction, paragraphs (3) to (7) apply in relation to the constituent entities of the MNE group that are located in that jurisdiction, as if the ultimate parent entity were —
the only constituent entity of a separate MNE group that is located in the jurisdiction; and
not a constituent entity of the MNE group that is located in that jurisdiction.