Singapore legislation
Regulation 85
Regulation 85
Conditions for application of Simplified Calculations Safe Harbour
Subregulation 1
Every constituent entity of an MNE group within a sub‑group that is located in a jurisdiction is eligible for a GloBE Safe Harbour in this Division (called the Simplified Calculations Safe Harbour) for a financial year if —
at least one entity of the sub-group in that jurisdiction is an NMCE for which an election is made under regulation 86(1); and
at least one of the following tests is met by that sub‑group for that jurisdiction in that financial year:
if the sub-group is sub-group 1, 2 or 3 — the routine profits test;
if the sub-group is sub-group 4 — the de minimis test;
if the sub-group is sub-group 1, 2 or 3 — the effective tax rate test.
Subregulation 2
The routine profits test is met by a sub-group for a jurisdiction in a financial year if the substance-based income exclusion (as determined by section 18) for the entities of the sub‑group located in that jurisdiction for that financial year is equal to or greater than the GloBE income or loss for that financial year of those entities.
Subregulation 3
The de minimis test is met by a sub-group for a jurisdiction in a financial year (FY) if —
the average of the following sums is less than EUR 10 million:
the sum of the adjusted revenues of those entities for FY;
the sum of the adjusted revenues of the entities of that sub-group in the preceding financial year (FY‑1), for FY‑1;
the sum of the adjusted revenues of the entities of that sub-group in the financial year preceding FY‑1 (FY‑2), for FY‑2; and
the average of the following sums is less than EUR 1 million:
the sum of the GloBE income or loss of the entities in sub‑paragraph (a)(i) for FY;
the sum of the GloBE income or loss of the entities of that sub‑group in FY‑1, for FY-1;
the sum of the GloBE income or loss of the entities of that sub‑group in FY‑2, for FY-2.
Subregulation 4
In paragraph (3), if —
none of the entities mentioned in paragraph (3)(a)(ii) and (b)(ii); or
none of the entities mentioned in paragraph (3)(a)(iii) and (b)(iii),had any adjusted revenue or GloBE income or loss for FY‑1 or FY‑2 (as the case may be), that financial year is disregarded in computing the average of the sums in paragraph (3)(a) and (b).
Subregulation 5
For the purposes of paragraph (3), if any financial year in that paragraph is longer or shorter than a year, then —
the sum of the adjusted revenues; or
the sum of the GloBE income or loss,of the entities for that financial year is the amount arrived at by multiplying that sum by the amount given by dividing 365 by the number of days in that financial year.
Subregulation 6
The effective tax rate test is met by a sub‑group for a jurisdiction in a financial year if the effective tax rate (as determined in accordance with section 17, including that section as applied by section 23, or section 24, as the case may be) for the entities of that sub‑group is at least 15%.
Subregulation 7
Paragraphs (2), (3) and (6) are subject to regulation 86.
Subregulation 8
In this regulation and regulation 85A —
Definition
“adjusted revenue”, in relation to a constituent entity for a financial year, means the revenue of the constituent entity that is taken into account in its FANIL for the financial year after making the adjustments prescribed in regulation 95;
Definition
“sub-group”, in relation to an MNE group, means sub‑group 1, sub‑group 2, sub‑group 3 or sub‑group 4 of the MNE group;
Definition
“sub-group 1”, in relation to an MNE group, means every constituent entity (not being a special entity) of the MNE group;
Definition
“sub-group 2”, in relation to an MNE group, means every minority‑owned constituent entity (not being an investment entity or insurance investment entity) of the MNE group;
Definition
“sub-group 3”, in relation to an MNE group, means every investment entity or insurance investment entity of the MNE group;
Definition
“sub-group 4”, in relation to an MNE group, means every constituent entity (not being an investment entity or insurance investment entity) of the MNE group.