§ 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)

the sum of the adjusted covered taxes (including any negative amount of adjusted covered taxes) of those constituent entities (called in this section B) is a negative amount; and

(c)

B (being a negative amount) is less than 15% of A (being nil or a negative amount),

then, for the purposes of this Act, an additional current top‑up amount applies to those entities for that jurisdiction for the financial year that is equal to the difference between 15% of A and B (expressed as a positive amount).

(2) Where the filing entity of an MNE group so elects in a GloBE information return (whether filed in Singapore or another jurisdiction) —(a)

any additional current top‑up amount (as computed under subsection (1)) that applies to the constituent entities (not being special entities) of an MNE group for a jurisdiction for a financial year, that is not attributable (in accordance with the regulations) to the carry back of losses, is treated as negative tax carried forward for those entities; and

(b)

for the purpose of section 16, the amount that is so attributable to the carry back of losses is treated as an additional current top‑up amount under subsection (1) that applies to those entities for that financial year.

(3) Section 17(4) applies to the amount of negative tax carried forward under subsection (2)(a).

(4) Where, in accordance with the regulations, there is any recalculation made for a financial year (called in this section the current financial year) of —(a)

the top‑up amounts of the constituent entities (not being special entities) of an MNE group located in a jurisdiction for a previous financial year; or

(b)

the effective tax rate for such entities for a previous financial year,

and after making all required recalculations —

(c)

the total top‑up amounts of those entities for the previous financial year (called in this section C) is greater than the corresponding amount previously calculated for that financial year (called in this section D),

then, an additional current top‑up amount applies to those entities for the current financial year that is equal to the difference between C and D (expressed as a positive amount).

(5) If —(a)

an election mentioned in section 19(4) has been made in respect of the constituent entities (other than stateless entities, investment entities and insurance investment entities) of an MNE group for a previous financial year;

(b)

any additional current top‑up amount applies to those entities under subsection (4) for the current financial year; and

(c)

after making all required recalculations in accordance with the regulations, section 19(1)(a) and (b) is not satisfied for the previous financial year,

then, for the purpose of calculating the additional current top‑up amount for the current financial year, D in subsection (4) is treated as nil.

—(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)

the sum of the adjusted covered taxes (including any negative amount of adjusted covered taxes) of those constituent entities (called in this section B) is a negative amount; and

(c)

B (being a negative amount) is less than 15% of A (being nil or a negative amount),

then, for the purposes of this Act, an additional current top‑up amount applies to those entities for that jurisdiction for the financial year that is equal to the difference between 15% of A and B (expressed as a positive amount).

(2) Where the filing entity of an MNE group so elects in a GloBE information return (whether filed in Singapore or another jurisdiction) —(a)

any additional current top‑up amount (as computed under subsection (1)) that applies to the constituent entities (not being special entities) of an MNE group for a jurisdiction for a financial year, that is not attributable (in accordance with the regulations) to the carry back of losses, is treated as negative tax carried forward for those entities; and

(b)

for the purpose of section 16, the amount that is so attributable to the carry back of losses is treated as an additional current top‑up amount under subsection (1) that applies to those entities for that financial year.

(3) Section 17(4) applies to the amount of negative tax carried forward under subsection (2)(a).

(4) Where, in accordance with the regulations, there is any recalculation made for a financial year (called in this section the current financial year) of —(a)

the top‑up amounts of the constituent entities (not being special entities) of an MNE group located in a jurisdiction for a previous financial year; or

(b)

the effective tax rate for such entities for a previous financial year,

and after making all required recalculations —

(c)

the total top‑up amounts of those entities for the previous financial year (called in this section C) is greater than the corresponding amount previously calculated for that financial year (called in this section D),

then, an additional current top‑up amount applies to those entities for the current financial year that is equal to the difference between C and D (expressed as a positive amount).

(5) If —(a)

an election mentioned in section 19(4) has been made in respect of the constituent entities (other than stateless entities, investment entities and insurance investment entities) of an MNE group for a previous financial year;

(b)

any additional current top‑up amount applies to those entities under subsection (4) for the current financial year; and

(c)

after making all required recalculations in accordance with the regulations, section 19(1)(a) and (b) is not satisfied for the previous financial year,

then, for the purpose of calculating the additional current top‑up amount for the current financial year, D in subsection (4) is treated as nil.