Singapore legislation
Regulation 93
Regulation 93
Adjustments for DTT computation where there is new transition year
Subregulation 1
This regulation applies where —
an MNE group of which a constituent entity located in Singapore (including a section 29(b) entity) (X) is one to which the Act applies for a financial year for the first time; (aa)in that financial year —
where X is a constituent entity of the MNE group located in Singapore — no constituent entity of the MNE group located in Singapore is; or
where X is a section 29(b) entity — X is not,within the scope of the law of any jurisdiction imposing a qualified IIR or a qualified UTPR; and
an entity, or the entity, in the second column corresponding to the description of X in the first column then comes within the scope of the law of any jurisdiction imposing a qualified IIR or a qualified UTPR:First columnSecond column1.Where X is a constituent entity of the MNE group located in SingaporeAny constituent entity of the MNE group located in Singapore2.Where X is a section 29(b) entityX3.[Deleted by S 129/2025 wef 25/02/2025] 4.[Deleted by S 129/2025 wef 25/02/2025]
Subregulation 1A
Where, starting from the financial year mentioned in paragraph (1)(a), one or both of the following apply:
X is eligible for a Transitional CbCR Safe Harbour under regulation 69;
section 19(4) (de minimis exclusion) applies to X,then paragraph (1) applies as if the financial year mentioned in paragraph (1)(aa) were the first financial year that —
X loses its eligibility for the Transitional CbCR Safe Harbour or an election is not made to apply it to X; and
section 19(4) does not apply to X.
Subregulation 2
In this regulation —
Definition
“DTT computation”, for a financial year, means determining the amount of adjusted covered taxes of X in order to determine X’s effective tax rate for the purpose of computing the amount of DTT payable in respect of the MNE group for that year;
Definition
“new transition year” is the financial year in which the event described in paragraph (1)(b) occurs.
Subregulation 3
For DTT computation for the new transition year, any negative tax carried forward for X under section 17(4) or 21(2) at the beginning of the new transition year must be eliminated.
Subregulation 4
Regulation 46(2) —
does not apply to any deferred tax liability —
that was taken into account for DTT computation and where the deferred tax liability arose in a financial year prior to the new transition year; and
that was not recaptured prior to the new transition year; but(b)applies to any deferred tax liability that is taken into account for DTT computation and where the deferred tax liability arose in the new transition year or a subsequent financial year.
Subregulation 5
For DTT computation for the new transition year, any amount treated as a special loss deferred tax asset under regulation 47(3)(b) for a financial year preceding the new transition year must be eliminated; but the filing entity of the MNE group of which X is a part may make a new election in accordance with regulation 47(1) for the new transition year.
Subregulation 6
For DTT computation for the new transition year, any deferred tax asset or deferred tax liability taken into account for DTT computation for any financial year before the new transition year must be eliminated; and the deferred tax assets and deferred tax liabilities must be determined afresh in accordance with regulations 89, 90, 91 and 92 (whichever is applicable) at the beginning of the new transition year.
Subregulation 7
For DTT computation for the new transition year, any deferred tax asset —
reflected or disclosed in X’s financial accounts as a result of a transaction entered into after 30 November 2021 and before the beginning of the new transition year; and
in respect of an item that would not be taken into account in computing X’s GloBE income or loss in that financial year, had X been required to determine its GloBE income or loss for that financial year under paragraph 6 of the First Schedule to the Act,must not be taken into account in determining X’s adjusted covered taxes.
Subregulation 8
Paragraph (7) does not apply to any deferred tax asset —
that is attributable to a tax loss that gave rise to an additional current top‑up amount mentioned in section 21(1); and
that arises from a transaction in respect of which DTT is payable in Singapore.
Subregulation 9
This regulation applies to a standalone JV located in Singapore, or an entity of a JV group located in Singapore, connected to an MNE group, as it applies to a constituent entity of an MNE group located in Singapore, and for this purpose —
in the case of the standalone JV — a reference to a constituent entity that is within or that comes within the scope of the law of any jurisdiction imposing a qualified IIR or a qualified UTPR, is to the standalone JV that is within or that comes within the scope of such law; and
in the case of the entity of the JV group — a reference to a constituent entity that is within or that comes within the scope of the law of any jurisdiction imposing a qualified IIR or a qualified UTPR, is to any entity of the JV group that is within or that comes within the scope of such law.