Singapore legislation
Regulation 73
Regulation 73
Routine profits test
Subregulation 1
The routine profits test is met for a jurisdiction in a financial year if —
the qualified substance-based income exclusion amount of the MNE group for that jurisdiction for that financial year is equal to or greater than the profit or loss before income tax for that financial year of the constituent entities of the MNE group located in that jurisdiction as reported in its qualifying country‑by‑country report; or
the profit or loss before income tax of those constituent entities for that financial year as reported in its qualifying country‑by‑country report is nil or reflects an overall loss.
Subregulation 2
The “qualified substance-based income exclusion amount” of an MNE group for a jurisdiction for a financial year is the substance‑based income exclusion for the constituent entities located in that jurisdiction of the MNE group for that financial year as determined by section 18 (or that section as applied by section 23 or 24(12), in the case of a constituent entity that is a minority‑owned constituent entity, or an investment entity or insurance investment entity, as the case may be), ignoring any payroll carve‑out amount or tangible asset carve‑out amount of any constituent entity of the MNE group in that jurisdiction —
that is not regarded as a constituent entity of the MNE group for the purposes of the MNE group’s qualifying country‑by‑country report; or
that is not regarded as located in that jurisdiction for the purposes of that report.
Subregulation 3
In paragraph (2), “payroll carve‑out amount” and “tangible asset carve‑out amount” have the meanings given respectively by section 18(2) and (3).