Singapore legislation
Regulation 88
Regulation 88
“Transition year”
Subregulation 1
In this Part, in determining the adjusted covered taxes of a constituent entity (X) of an MNE group for the purposes of Part 2 of the Act, “transition year” means —
subject to sub-paragraph (b), the first financial year that —
X or any other constituent entity of that MNE group located in the same jurisdiction as X comes within the scope of the law of any jurisdiction imposing a qualified IIR or a qualified UTPR; or
a chargeable entity of that MNE group is liable for MTT in relation to X, or any other constituent entity of that MNE group located in the same jurisdiction as X, as a relevant entity, or would have been so liable if X or any other such constituent entity were a relevant entity,whichever is earlier; or
where, starting from the first financial year mentioned in sub-paragraph (a), either or both of the following apply:
X is eligible for the Transitional CbCR Safe Harbour under regulation 69 or its equivalent in any other jurisdiction (each called in this regulation the TCbCR Safe Harbour);
section 19(4) or its equivalent in any other jurisdiction applies to X (each called in this regulation the de minimis exclusion),the first financial year that —
X loses its eligibility for the TCbCR Safe Harbour or an election is not made to apply it to X; and
the de minimis exclusion does not apply to X.
Subregulation 2
In this Part, in determining the adjusted covered taxes of a constituent entity (X) of an MNE group located in Singapore for the purposes of Part 3 of the Act, “transition year” means —
subject to sub-paragraph (b), the first financial year —
that any constituent entity of the MNE group located in Singapore comes within the scope of the law of any jurisdiction imposing a qualified IIR or a qualified UTPR; or
for which the MNE group is liable to be registered under Part 4 of the Act,whichever is earlier; or
where, starting from the first financial year mentioned in sub-paragraph (a), either or both of the following apply: (i)X is eligible for the TCbCR Safe Harbour;
the de minimis exclusion applies to X,the first financial year that —
X loses its eligibility for the TCbCR Safe Harbour or an election is not made to apply it to X; and
the de minimis exclusion does not apply to X.
Subregulation 3
In this Part, in determining the adjusted covered taxes of a section 29(b) entity (X) of an MNE group for the purposes of Part 3 of the Act, “transition year” means the first financial year —
that X comes within the scope of the law of any jurisdiction imposing a qualified IIR or a qualified UTPR; or
for which the MNE group is liable to be registered under Part 4 of the Act,whichever is earlier.