Multinational Enterprise (Minimum Tax) Act 2024

Sections (86)

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• § 1 — Short title and commencement

  1.—(1) This Act is the Multinational Enterprise (Minimum Tax) Act 2024.(2) A provision of this Act does not come into operation except on a date and in the manner mentioned in subsection (3). (3) The Minister may, from time to time, by order in the Gazette, declare that this Act or any provision th

• § 10 — Act to be construed as one with ITA

  10.—(1) This Act charges taxes on the income of MNE groups, known as the MTT and the DTT.(2) This Act is to be construed as one with the ITA. —(1) This Act charges taxes on the income of MNE groups, known as the MTT and the DTT. (2) This Act is to be construed as one with the ITA.

• § 11 — Purpose of this Part

  11.—(1) The purpose of this Part is to implement the GloBE rules relating to the top‑up tax under the income inclusion rule (IIR).(2) For that purpose, this Part makes provision for a tax payable in respect of a constituent entity located in a jurisdiction outside Singapore, or a stateless entity, o

• § 12 — Entity chargeable with MTT

  12. An entity (called in this Act a chargeable entity) is chargeable with MTT for a financial year if —(a) the entity is a responsible member of an MNE group at any time in the financial year; (b) this Act applies to the MNE group for the financial year; (c) the entity holds an ownership interest

• § 13 — Responsible members of MNE group

  13.—(1) The ultimate parent entity of an MNE group is a responsible member of the MNE group if it is not an excluded entity and is —(a) located in Singapore; or (b) subject to a qualified IIR under the law of the jurisdiction where it is located. (2) An intermediate parent entity (X) of an MNE gro

• § 14 — Amount of MTT chargeable on chargeable entity

  14.—(1) Subject to subsection (2), the amount of MTT chargeable on a chargeable entity for a financial year is the sum of the top‑up tax (determined in accordance with sections 15, 24 and 25) of each relevant entity of the chargeable entity for the financial year.(2) Where a chargeable entity (X) ho

• § 15 — Top‑up tax for relevant entity other than investment entity or insurance investment entity

  15.—(1) In this Part, the top‑up tax for a relevant entity (other than an investment entity or an insurance investment entity) of a chargeable entity for a financial year is the top‑up amount of the relevant entity for the financial year multiplied by the chargeable entity’s inclusion ratio for the

• § 16 — Top‑up amounts of constituent entities other than special entities

  16.—(1) In this Part, a constituent entity (not being a special entity) of an MNE group has a top‑up amount for a financial year if the amount determined under subsection (2) or (3) is a positive amount, and that positive amount is considered the top‑up amount of the constituent entity for the finan

• § 17 — Effective tax rate for constituent entities other than special entities

  17.—(1) In this Part, the effective tax rate for the constituent entities (not being special entities) of an MNE group located in a jurisdiction for a financial year is determined by the formula where —(a) A is the sum of the adjusted covered taxes (including any negative amount of adjusted covered

• § 18 — Substance‑based income exclusion for constituent entities other than special entities

  18.—(1) For the purpose of section 16(6), the substance‑based income exclusion for the constituent entities (not being special entities) of an MNE group located in a jurisdiction for a financial year is determined by the formula A + B, where —(a) A is the sum of the payroll carve‑out amount for each

• § 19 — De minimis exclusion

  19.—(1) This section applies in relation to the constituent entities (not being stateless entities, investment entities and insurance investment entities) of an MNE group located in a jurisdiction for a financial year (FY) if —(a) the average of the following sums is less than EUR 10 million, or its

• § 2 — Interpretation

  2.—(1) In this Act —“acceptable financial accounting standard” means —(a) the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB); (b) the generally accepted accounting principles of Australia, Brazil, Canada, Member States of the Euro

• § 20 — GloBE Safe Harbours

  20.—(1) This section applies if —(a) specified entities of an MNE group located in a jurisdiction are, in accordance with the regulations for applying a GloBE Safe Harbour, eligible for the GloBE Safe Harbour for a financial year; and (b) the filing entity of the MNE group elects in a GloBE informa

• § 21 — Additional current top‑up amount for constituent entities other than special entities

  21.—(1) Where, for any financial year —(a) the sum of the GloBE income or loss (including any negative amount of GloBE income or loss) of all the constituent entities (not being special entities) of an MNE group located in a jurisdiction (called in this section A) is nil or a negative amount; (b) t

• § 22 — Top‑up amounts of stateless entities

  22.—(1) In this Part, the top‑up amount of a constituent entity that is a stateless entity is determined by applying sections 16, 17, 18 and 21 (and regulations made for the purposes of those sections) to the constituent entity as if it were the only constituent entity of the MNE group located in a

• § 23 — Top‑up amounts of minority‑owned constituent entities and members of minority‑owned subgroup

  23.—(1) In this Part, the top‑up amount of a constituent entity that is a minority‑owned constituent entity (not being an investment entity or an insurance investment entity), and that is not a member of a minority‑owned subgroup, is determined by applying sections 16, 17, 18, 20 and 21 (and regulat

• § 24 — Top‑up tax for investment entities and insurance investment entities

  24.—(1) In this Part, the top‑up tax for a financial year for a relevant entity of a chargeable entity that is an investment entity or insurance investment entity, is the top‑up amount of the entity for the financial year.(2) In this Part, an investment entity or insurance investment entity has a to

• § 25 — Application of this Part to joint ventures and JV subsidiaries

  25.—(1) For the purposes of this Part, a standalone JV, or an entity of a JV group, that —(a) is connected to an MNE group; and (b) has a top‑up amount (as determined under this section), is treated as a relevant entity of the MNE group. (2) Whether a standalone JV or entity of a JV group has a t

• § 26 — Multi‑parent groups

  26. The Minister may make regulations under section 84 in accordance with the GloBE rules to prescribe how the provisions of this Act apply in relation to a multi‑parent group.[Act 25 of 2025 wef 01/01/2025]

• § 27 — Purpose of this Part

  27.—(1) The purpose of this Part is to implement a top‑up tax in respect of an MNE group that is intended to be a qualified domestic minimum top‑up tax within the meaning of the GloBE rules.[Act 25 of 2025 wef 01/01/2025] (2) For that purpose, this Part makes provision for a tax payable in respect o

• § 28 — DTT payable in respect of MNE group and amount of DTT

  28.—(1) DTT is payable in respect of an MNE group for a financial year where —(a) the MNE group is one to which this Act applies for that financial year; (b) at least one of its constituent entities is located in Singapore or is a section 29(b) entity; and (c) the MNE group has a top‑up amount for

• § 29 — Top‑up amount of MNE group

  29. In this Part, the top‑up amount for an MNE group for a financial year is the sum of —(a) the top‑up amount of every constituent entity (not being a special entity) of the MNE group located in Singapore for the financial year; (b) the top‑up amount of every constituent entity of the MNE group (c

• § 3 — “Flow‑through entity”, “reverse hybrid entity” and meaning of fiscal transparency

  3.—(1) In this Act, an entity is a “flow‑through entity” to the extent it is fiscally transparent with respect to any of its income, expenditure, profit or loss —(a) if it is established, formed, incorporated or registered under the laws of Singapore — under the ITA; or (b) if it is established, fo

• § 30 — Top‑up amounts of constituent entities

  30.—(1) This section applies for the purposes of determining under this Part the top‑up amounts of the entities in section 29.(2) Sections 16 to 21 apply to determine the top‑up amount of a constituent entity (not being a special entity) of the MNE group located in Singapore for the financial year w

• § 31 — Registration of MNE group

  31.—(1) An MNE group to which this Act applies for a financial year, and that has a constituent entity located in Singapore (including a joint venture or JV subsidiary located in Singapore and connected to the MNE group) or a section 29(b) entity, must be registered under this Part.(2) The ultimate

• § 32 — Registration of MNE group by Comptroller

  32.—(1) This section applies where there are reasonable grounds for believing that an MNE group is one that must be registered under this Part by virtue of section 31, but has yet to be registered.(2) The Comptroller may register the MNE group. (3) Upon the registration of the MNE group, the Comptr

• § 33 — Designated local GIR filing entity

  33.—(1) A constituent entity located in Singapore of a registered MNE group that satisfies the conditions prescribed by the regulations, must be designated as the designated local GIR filing entity of the MNE group in accordance with subsection (2).(1A) In subsection (1), a constituent entity exclud

• § 34 — Designated local DTT filing entity

  34.—(1) A constituent entity located in Singapore of a registered MNE group that satisfies the conditions prescribed by the regulations, must be designated as the designated local DTT filing entity of the MNE group in accordance with subsection (2).(1A) In subsection (1), a constituent entity exclud

• § 35 — Ultimate parent entity of registered MNE group must inform Comptroller of certain events

  35. The ultimate parent entity of a registered MNE group must inform the Comptroller, in the form and manner specified by the Comptroller and within the prescribed time, of the occurrence of any prescribed event relating to the MNE group, and any information on the event that the Comptroller may rea

• § 36 — Surcharge for failure to register

  36.—(1) This section applies where the ultimate parent entity of an MNE group to which this Act applies for a financial year, fails to register the MNE group in accordance with section 31.(2) The Comptroller may make an assessment of a surcharge on the ultimate parent entity of an amount equal to 10

• § 37 — Record keeping

  37.—(1) Regulations may be made under section 84 to require prescribed entities to keep and retain in safe custody records that satisfy the requirement in subsection (2), for a period specified in the regulations, and for this purpose different entities and periods may be specified for different des

• § 38 — Cancellation or suspension of registration

  38.—(1) Where the ultimate parent entity of a registered MNE group (being one registered on the basis that it was an MNE group to which this Act applies for an earlier financial year) satisfies the Comptroller that the MNE group is not one to which this Act applies for a later financial year (called

• § 39 — Returns deemed furnished by due authority

  39.—(1) A return, statement or form purporting to be furnished under this Act by or on behalf of any entity is for all purposes deemed to have been furnished by that entity unless the contrary is proved.(2) Any person signing any such return, statement or form is deemed to be cognizant of all matter

• § 4 — “Permanent establishment” and “main entity”

  4.—(1) In this Act, a “permanent establishment” is —(a) a place of business (including a deemed place of business under an applicable tax treaty in force) situated in a jurisdiction where it is treated as a permanent establishment in accordance with an applicable tax treaty in force, but only if the

• § 40 — GloBE information return

  40.—(1) Subject to subsection (2), the designated local GIR filing entity of a registered MNE group to which this Act applies for a financial year must file by the due date with the Comptroller, in the form and manner determined by the Comptroller, a GloBE information return.(2) A designated local G

• § 41 — Returns of MTT

  41.—(1) Every responsible member of a registered MNE group located in Singapore to which this Act applies for a financial year must, by the due date, furnish to the Comptroller in the form and manner determined by the Comptroller, either —(a) if the responsible member is not chargeable with MTT for

• § 42 — Payment of MTT

  42.—(1) A responsible member that has furnished a return under section 41(1) for a financial year must, no later than one month after the due date in that provision, pay to the Comptroller, without demand and in the manner determined by the Comptroller, any MTT payable for the financial year, as set

• § 43 — Returns of DTT

  43.—(1) The designated local DTT filing entity of a registered MNE group to which this Act applies for a financial year must, by the due date, furnish to the Comptroller in the form and manner determined by the Comptroller, either —(a) if there is no DTT payable in respect of the MNE group for that

• § 44 — Payment of DTT

  44.—(1) A designated local DTT filing entity that has furnished a return under section 43 for a financial year must, no later than one month after the due date, pay to the Comptroller, without demand and in the manner determined by the Comptroller —(a) any DTT payable for the financial year; or (b)

• § 45 — Election to pay amount attributable to an entity separately

  45.—(1) An MNE group may, through its designated local DTT filing entity, elect for the part of its top‑up amount (called in this section amount Y) for a financial year that is attributable to a constituent entity of the MNE group or a joint venture or JV subsidiary connected to the MNE group (each

• § 46 — Power of Comptroller to obtain information

  46.—(1) Sections 64 to 65E (except section 65B(1E)) of the ITA have effect for the purpose of enabling the Comptroller to obtain any information or evidence for the purpose of the administration or enforcement of this Act.(2) The sections mentioned in subsection (1) apply for the purpose of subsecti

• § 47 — Powers of arrest and disposal of items furnished or seized

  47. Sections 65F to 65K of the ITA apply with the following modifications:(a) a reference to a provision that is incorporated by reference in this Act is to that provision as applied and modified by this Act; (b) a reference to an offence under section 37M(3) or (4), 37S(3) or (4), 96 or 96A of the

• § 48 — Information may be used for administration of Act

  48. Despite any obligation as to secrecy imposed under any written law or rule of law, the Comptroller of Goods and Services Tax, the Comptroller of Property Tax, the Chief Assessor or the Commissioner of Stamp Duties may transmit information obtained by him or her under the Goods and Services Tax A

• § 49 — Assessment

  49.—(1) This section applies where —(a) a return required to be furnished under section 41 or 43 has not been furnished by the due date mentioned in that section; or (b) it appears to the Comptroller that a return is incomplete, incorrect or not furnished in accordance with the requirements of sect

• § 5 — Jurisdiction where entity or permanent establishment is located

  5.—(1) For the purposes of this Act, an entity (not being a flow‑through entity) is located in a jurisdiction if —(a) it is a tax resident of that jurisdiction based on its place of management, establishment, formation, incorporation, registration or similar criteria under the laws of that jurisdict

• § 50 — Assessment in event of failure to register

  50.—(1) This section applies —(a) where the ultimate parent entity of an MNE group to which this Act applies for a financial year, fails to register the MNE group in accordance with section 31; or (b) after the registration of the MNE group under section 31 or 32, as the case may be. (2) The Compt

• § 51 — Assessment in event of fraud

  51.—(1) Despite section 49, where, in the Comptroller’s opinion, any form of fraud or wilful default has been committed by or on behalf of any person in connection with or in relation to any liability for MTT or DTT, the Comptroller may, for the purpose of making good any loss of MTT or DTT attribut

• § 52 — Errors and defects in assessment and notice

  52.—(1) No assessment or other proceeding purporting to be made in accordance with the provisions of this Act is to be quashed, or is deemed to be void or voidable, for want of form, or is affected by reason of a mistake, defect or omission therein, if —(a) it is, in substance and effect, in conform

• § 53 — Objections

  53.—(1) If a chargeable entity disputes an assessment of MTT or DTT payable by it for a financial year, the chargeable entity may (whether by itself or another entity authorised by it) apply to the Comptroller, by a written notice of objection, to review and to revise the assessment made upon the ch

• § 54 — Appeals to Board of Review

  54.—(1) The Board of Review established under Part 18 of the ITA (called in this Part the Board) may hear appeals against an assessment made by the Comptroller under this Act.(2) A chargeable entity that is aggrieved by such assessment, and that has failed to agree with the Comptroller in the manner

• § 55 — Appeals to General Division of High Court

  55.—(1) The appellant or the Comptroller may appeal to the General Division of the High Court from a decision of the Board on a question of law or of mixed law and fact.(2) The procedure governing and the costs of any such appeal to the General Division of the High Court are as provided for in the R

• § 56 — Cases stated for General Division of High Court

  56.—(1) The Board may at any time and in regard to any appeal, with or without proceeding to the determination of the appeal, state a case on a question of law for the opinion of the General Division of the High Court.(2) A stated case must set forth the facts and any finding of fact by the Board, t

• § 57 — Assessments are final and conclusive

  57.—(1) Except as expressly provided in this Act, where no valid notice of appeal has been lodged within the time limited by this Part (including other written law as applied by this Part) against an assessment, or where an assessment has been determined on appeal, the assessment is final and conclu

• § 58 — Recovery of unpaid MTT, interest and penalty

  58.—(1) This section applies to —(a) an amount of MTT payable under section 42(1) or pursuant to an assessment, that has not been paid by the date it becomes due (called in this section the MTT in arrears); and (b) an amount of interest imposed under section 42(3) or 49(8) (including that provision

• § 59 — Recovery of unpaid DTT, interest and penalty

  59.—(1) This section applies to —(a) an amount of DTT payable under section 44(1) or (2) or pursuant to an assessment, that has not been paid on the date it becomes due (called in this section DTT in arrears); and (b) an amount of interest imposed under section 44(4) or 49(8) (including that provis

• § 6 — Jurisdiction where entity is located: 2 or more jurisdictions

  6.—(1) This section applies where an entity (X) is located in 2 or more jurisdictions in a financial year under section 5(1).(2) If there is an applicable tax treaty in force between 2 of these jurisdictions, X is located in the jurisdiction that it is deemed to be a resident of under that treaty.

• § 60 — Repayment of MTT and DTT

  60.—(1) If it is proved to the Comptroller’s satisfaction that any part of any MTT or DTT has been paid in excess of the amount payable under this Act, the payer is entitled to have the amount so paid in excess refunded.(2) A claim for repayment must be made no later than —(a) in the case of MTT — 3

• § 61 — Right of contribution

  61.—(1) A liable entity (X) of or connected to an MNE group that has made payment to the Comptroller of any part of the DTT payable in respect of the MNE group for a financial year, has a right of contribution or indemnity from another liable entity (Y) of or connected to the MNE group that is joint

• § 62 — Relief against double-counting

  62.—(1) Where a joint venture or JV subsidiary (X) connected to an MNE group is also a joint venture or JV subsidiary connected to another MNE group and DTT is payable in respect of both MNE groups for a financial year, the designated local DTT filing entity of any of those MNE groups (called in thi

• § 63 — Relief in respect of error or mistake

  63.—(1) If a chargeable entity alleges that any payment of MTT or DTT is excessive by reason of some error or mistake in a return made under this Act, it may, at any time not later than —(a) in the case of MTT — 31 December of the 5th year after the year in which the due date mentioned in section 41

• § 64 — Failure to make return

  64.—(1) Any person who fails or neglects without reasonable excuse to comply with section 41(1) or 43(1) shall be guilty of an offence and shall be liable on conviction to —(a) a fine not exceeding $5,000 and in default of payment to imprisonment for a term not exceeding 6 months; and (b) in the ca

• § 65 — Failure to keep proper records

  65. Any person who fails or neglects without reasonable excuse to comply with any regulations under section 37(1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and in default of payment to imprisonment for a term not exceeding 6 months.

• § 66 — Failure to file GloBE information return and notice

  66. Any person who fails or neglects without reasonable excuse to comply with section 40(1) or (3) shall be guilty of an offence and shall be liable on conviction to —(a) a fine not exceeding $5,000 and in default of payment to imprisonment for a term not exceeding 6 months; and (b) in the case of

• § 67 — Penalty for information in GloBE information return or notice known to be false or misleading

  67. Any person who, in purported compliance with section 40(1) or (3), produces to the Comptroller any document which contains any information, or provides to the Comptroller any information, known to the person to be false or misleading in a material particular —(a) without indicating to the Comptr

• § 68 — Penalty for incorrect return, etc.

  68.—(1) Any person that —(a) makes an incorrect return under section 41 or 43 by omitting, overstating or understating anything required to be included in the return for the purpose of reporting the amount of any MTT or DTT; or (b) gives to the Comptroller any incorrect information requested by him

• § 69 — Serious fraudulent tax evasion

  69.—(1) Any person who wilfully with intent to evade or to assist any other person to evade payment of MTT or DTT —(a) prepares or maintains or authorises the preparation or maintenance of any false books of account or other records or falsifies or authorises the falsification of any books of accoun

• § 7 — Minimum rate

  7. The minimum rate is 15%.

• § 70 — Offences by authorised and unauthorised persons

  70. Any person who —(a) being a person appointed for the due administration of this Act or any assistant employed in connection with the assessment and collection of MTT or DTT —(i) demands from any person an amount in excess of the assessment of MTT or DTT; (ii) withholds for the person’s own use

• § 71 — Offence for obstructing Comptroller or officers

  71. Any person who obstructs or hinders the Comptroller or any officer in the discharge of his or her duties or the exercise of his or her powers under this Act shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding

• § 72 — MTT or DTT payable despite any proceedings

  72. The institution of proceedings for, or the imposition of, a penalty, fine or term of imprisonment under this Act does not relieve any person from liability to payment of any MTT or DTT for which the person is or may be liable.

• § 73 — Consent for prosecution

  73.—(1) No prosecution may be commenced in respect of an offence under section 64, 65, 66, 67, 68 or 69 except at the instance or with the consent of the Comptroller or the Public Prosecutor.(2) No prosecution may be commenced in respect of an offence under section 70, 71 or 83(3) except at the inst

• § 74 — Application of ITA provisions on offences

  74. Sections 102 and 105 of the ITA apply to offences under this Part as they apply to offences under the ITA.

• § 75 — Composition of offences

  75.—(1) The Comptroller may compound any offence under sections 64, 65, 66, 67, 68, 69 and 71.(2) The Comptroller may authorise either generally or specifically an officer to compound any offence under sections 64, 65, 66, 67, 68, 69 and 71. —(1) The Comptroller may compound any offence under secti

• § 76 — Authorisation of officers

  76. Without limiting section 4(5) of the ITA, the Comptroller may authorise a person authorised under section 4(1) of the ITA to investigate offences under this Act, and to exercise any power in sections 65B(1A), (1B), (1C) or (1D), 65F, 65G, 65H and 65I of the ITA as applied by sections 46 and 47.

• § 77 — Liability of managers of entities

  77. The manager or principal officer in Singapore of every entity is answerable for doing all such acts, matters and things as are required to be done by the entity under this Act.

• § 78 — Duty of liquidator, etc., on winding up of entity

  78.—(1) Where an entity is being wound up or dissolved, the liquidator or receiver of the entity, or any other person overseeing the winding up or dissolution of the entity, is answerable for doing all such acts, matters and things as are required to be done by the entity under this Act.(2) Where an

• § 79 — Provisions relating to interest and penalty

  79.—(1) Any interest or penalty imposed under this Act is not part of the tax paid for the purposes of claiming relief under any of the provisions of this Act.(2) Any penalty imposed under section 87(1) of the ITA (as applied by this Act) is considered interest on tax for the purposes of section 33(

• § 8 — MNE group to which this Act applies

  8.—(1) This Act applies to an MNE group for a financial year beginning on or after 1 January 2025 if its consolidated group revenue (determined by reference to the consolidated financial statements of its ultimate parent entity) for at least 2 financial years out of the 4 financial years immediately

• § 80 — Saving for criminal proceedings

  80. The provisions of this Act do not affect any criminal proceedings under any other written law.

• § 81 — Admissibility of certain statements and documents as evidence

  81.—(1) Statements made or documents produced by or on behalf of any person are not inadmissible in evidence against the person in any proceedings to which this section applies by reason only that the person was or may have been induced to make the statements or produce the documents by any induceme

• § 82 — Protection of informers

  82.—(1) Except as provided in subsection (3), no witness in any civil or criminal proceedings is obliged or permitted —(a) to disclose the identity of an informer who has given any information (whether the information is given before, on or after that date) with respect to an offence under this Act;

• § 83 — Application of other ITA provisions

  83.—(1) This section applies other ITA provisions for the purposes of this Act.Official secrecy (2) Section 6 of the ITA applies with the following modifications:(a) a reference in that section to any document, information, return, or assessment list relating to income or items of income of a perso

• § 84 — Regulations

  84.—(1) The Minister may make regulations —(a) to provide for adjustments, including any allocation to or from another entity, to be made to the FANIL or the GloBE income or loss of entities (including adjustments to be made to the revenue of entities); (b) to provide for adjustments, including any

• § 85 — Related amendments to Income Tax Act 1947

  85. In the Income Tax Act 1947 —(a) in section 2(1), after the definition of “crops”, insert —“ “DTT” means the domestic top‑up tax imposed under the MMT Act;”; (b) in section 2(1), after the definition of “employee”, insert —“ “excluded top‑up tax” means —(a) a qualified IIR, or a tax imposed by t

• § 86 — Related amendments to Inland Revenue Authority of Singapore Act 1992

  86. In the Inland Revenue Authority of Singapore Act 1992 —(a) in the Third Schedule, after item 10, insert —“11. Multinational Enterprise (Minimum Tax) Act 2024.”; and (b) in the Fourth Schedule, in item 1, replace “and Part 9 of the Casino Control Act 2006” with “, Part 9 of the Casino Control Ac

• § 9 — Currency

  9.—(1) Unless otherwise specified in subsection (3) or (4) or in the regulations, calculations under this Act in relation to an MNE group, or a constituent entity of the group, are to be carried out in the following currency (called in this section the presentation currency):(a) the currency used to