Singapore legislation
Regulation 5
Regulation 5
Conversion of amount into presentation currency
Subregulation 1
This regulation applies where, in order to determine for the purpose of Part 2 or 3 of the Act, the top‑up tax for a financial year for —
a relevant entity (X); or
a standalone JV or an entity of a JV group that is treated as a relevant entity under section 25 (also X),an amount used to determine X’s GloBE income or loss or top‑up amount that is not in the presentation currency has to be converted into that currency pursuant to section 9(1).
Subregulation 2
This regulation also applies where an amount used to determine X’s GloBE income or loss or top-up amount that is to be entered in a GloBE information return to be filed under section 40, is not in the presentation currency.
Subregulation 3
The amount is to be converted into the presentation currency in accordance with the applicable rules (including any applicable guidance for hyperinflation) in the applicable financial accounting standards.
Subregulation 4
Paragraph (3) applies whether or not the applicable financial accounting standards require the amount to be converted into the presentation currency.
Subregulation 5
In this regulation, the applicable financial accounting standards are —
if X’s FANIL is the net income or loss determined in accordance with paragraph 6(3)(a) of the First Schedule to the Act — the financial accounting standard used in preparing the consolidated financial statements for the financial year concerned of the ultimate parent entity of the MNE group of or to which X is a part or connected; or
if X’s FANIL is the net income or loss determined in accordance with paragraph 6(3)(b) of the First Schedule to the Act — the acceptable financial accounting standard or authorised financial accounting standard used to determine that net income or loss.