Singapore legislation
Regulation 53
Regulation 53
Adjustment to substance-based income exclusion due to assets being used to derive only international shipping income, etc.
Subregulation 1
For the purposes of section 18, the carrying value of the eligible tangible assets of a constituent entity of an MNE group for a financial year does not include —
the carrying value for the financial year of any assets of the constituent entity that are used during that financial year to derive only international shipping income;
the proportion of the carrying value for the financial year of any assets of the constituent entity that are used during that financial year to derive only ancillary international shipping income, equal to the proportion that its ancillary international shipping income excluded from its FANIL for that financial year under regulation 25(1)(a) or (c) bears to its ancillary international shipping income;
the proportion described in paragraph (2) of the carrying value for the financial year of any assets of the constituent entity (other than any assets mentioned in sub‑paragraph (a) or (b)) that is attributable to its international shipping income for that financial year; and
the proportion described in paragraph (3) of the carrying value for the financial year of any assets of the constituent entity (other than any assets mentioned in sub‑paragraph (a) or (b)) that is attributable to its ancillary international shipping income excluded from its FANIL for that financial year under regulation 25(1)(a) or (c).
Subregulation 2
In paragraph (1)(c), the proportion of the carrying value of the assets is that which the revenue of the constituent entity from international shipping activities for that financial year bears to its total revenue for that financial year.
Subregulation 3
In paragraph (1)(d), the proportion of the carrying value of the assets is that which the amount computed by the following formula bears to the total revenue of the constituent entity for that financial year:where —
A is the revenue of the constituent entity from ancillary international shipping activities for that financial year;
B is the amount of the ancillary international shipping income of the constituent entity that is excluded from its FANIL for that financial year under regulation 25(1)(a) or (c); and
C is the total amount of the ancillary international shipping income of the constituent entity for that financial year.