Singapore legislation
Regulation 72
Regulation 72
Simplified effective tax rate test
Subregulation 1
The simplified effective tax rate test is met for a jurisdiction in a financial year if the simplified effective tax rate for the constituent entities of an MNE group in that jurisdiction is —
in the case of a financial year beginning in 2025 — at least 16%; or
in the case of a financial year beginning on or after 1 January 2026 — at least 17%.
Subregulation 2
The simplified effective tax rate for the constituent entities of an MNE group in a jurisdiction in a financial year is the amount (expressed as a percentage) given by dividing —
the total simplified income tax expense of those constituent entities of the MNE group in that jurisdiction for that financial year; by(b)the total profit or loss before income tax of those constituent entities of the MNE group in that jurisdiction for that financial year as reported on its qualifying country‑by‑country report.