Singapore legislation

Regulation 69

of Multinational Enterprise (Minimum Tax) Regulations 2024

Regulation 69

Constituent entities eligible for Transitional CbCR Safe Harbour

Subregulation 1

Subject to paragraphs (2) and (3), every constituent entity of an MNE group located in a jurisdiction is eligible for a GloBE Safe Harbour in this Division (called the Transitional CbCR Safe Harbour) for a financial year if the conditions in regulation 70 are met.

Subregulation 2

An investment entity or insurance investment entity (X) of the MNE group located in a jurisdiction is eligible for the Transitional CbCR Safe Harbour for a financial year only if —

(a)

all the constituent entities of the MNE group with direct ownership interests in X are located in that jurisdiction; and

(b)

no election has been made in respect of X under regulation 63 or 64 for that financial year.

Subregulation 3

A constituent entity of the MNE group located in the same jurisdiction as the ultimate parent entity (Y) of the MNE group that is a flow-through entity, is not eligible for the Transitional CbCR Safe Harbour for a financial year unless, were Y’s GloBE income or loss determined for that financial year in accordance with paragraph 6 of the First Schedule to the Act —

(a)

Y’s GloBE income or loss would be nil as a result of the application of paragraph 6(12) of the First Schedule to the Act; and

(b)

no amount of FANIL of any permanent establishment would be allocated, as a result of regulation 27, to Y.