Singapore legislation
Regulation 75
Regulation 75
Adjustments
Subregulation 1
This regulation sets out adjustments that must be made to the information in regulation 74(1) for the purpose mentioned in that provision.
Subregulation 2
Where —
the constituent entities of an MNE group in a jurisdiction have a net unrealised fair value loss for a financial year; and
that loss exceeds EUR 50 million,that loss is to be excluded from the profit or loss before income tax of those constituent entities.
Subregulation 3
For the purpose of paragraph (2), the constituent entities of an MNE group in a jurisdiction have a net unrealised fair value loss for a financial year to the extent their losses that arise from changes in fair value of relevant ownership interests exceed gains arising from changes in fair value of relevant ownership interests.
Subregulation 4
For the purpose of paragraph (3), an ownership interest in an entity is “relevant” unless, at the end of the financial year, the direct ownership interests in that entity that are held by one or more constituent entities of the MNE group carry in total rights to less than 10% of the profits, capital, reserves or voting rights of that entity.
Subregulation 5
For the purpose of applying the de minimis test, the simplified effective tax rate test or the routine profits test —
the profit or loss before income tax;
the revenue; and
the income tax expense,that are attributable to an investment entity or insurance investment entity (X) of the MNE group must only be included in the profit or loss before income tax, revenue and income tax expense (respectively) of the constituent entity or entities of that MNE group that has or have direct ownership interests in X, and the amounts so included must be in proportion to its or their ownership interests in X.
Subregulation 6
In a case described in regulation 68(5) that meets the condition in regulation 68(6), any amount recorded as a reduction in income in a constituent entity’s financial accounts that is attributable to an impairment of goodwill related to transactions entered into after 30 November 2021, must be added to its profit or loss before income tax, for the purposes of —
determining if the simplified effective tax rate test is met, but only if its financial accounts do not also have a reversal of a deferred tax liability, or a recognition or increase of a deferred tax asset, in respect of the impairment; and
determining if the routine profits test is met.