§ 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 top‑up amount is determined by applying sections 16, 17, 18, 19, 20, 21 and 24 (and regulations made for the purposes of those sections) with the following modifications:(a)

except in paragraphs (b) and (c), references to an MNE group are to the standalone JV or the JV group of which the entity is a part;

(b)

references to the filing entity of an MNE group are to the filing entity of the MNE group to which the standalone JV or entity is connected;

(c)

the reference in section 18(10) to a determination by an MNE group is to a determination by the MNE group to which the standalone JV or entity is connected;

(d)

references to the ultimate parent entity of an MNE group are to the standalone JV or the joint venture of the JV group;

(e)

references to a constituent entity (not being a special entity) or a constituent entity that is an investment entity or insurance investment entity (as the case may be), are to the standalone JV or the entity;

(f)

such other modifications as may be prescribed by the regulations.

(3) The FANIL and the GloBE income or loss for a financial year of a standalone JV or entity of a JV group are determined under paragraph 6 (except sub‑paragraphs (4) and (14)) of the First Schedule and regulations made for the purpose of that paragraph, with the following modifications:(a)

references to an MNE group are to the standalone JV or the JV group of which the entity is a part;

(b)

references to the ultimate parent entity of an MNE group are to the standalone JV or the joint venture of the JV group;

(c)

references to a constituent entity are to the standalone JV or the entity;[Act 25 of 2025 wef 01/01/2025]

(d)

such other modifications as may be prescribed by the regulations.

(4) For the purpose of subsection (3), if the financial year (FY1) of the standalone JV or entity of a JV group is different from the financial year (FY2) of the ultimate parent entity of the MNE group to which it is connected, the FANIL of the standalone JV or entity for FY2 is its FANIL for FY1 that ends at any time in FY2.

(5) For the purpose of applying section 18(3) in subsection (2) in a case described in subsection (4), the carrying value of an eligible tangible asset of the standalone JV or entity of a JV group for FY2 is its carrying value for FY1 that ends at any time in FY2.

(6) The qualifying current tax expenses, qualifying deferred tax expenses and adjusted covered taxes of a standalone JV or entity of a JV group are determined under paragraph 1 of the First Schedule and the regulations made for the purpose of that paragraph, with the following modifications:(a)

references to an MNE group are to the standalone JV or the JV group of which the entity is a part;

(b)

references to the ultimate parent entity of an MNE group are to the standalone JV or the joint venture of the JV group;

(c)

references to a constituent entity are to the standalone JV or the entity;[Act 25 of 2025 wef 01/01/2025]

(d)

such other modifications as may be prescribed by the regulations.

—(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 top‑up amount is determined by applying sections 16, 17, 18, 19, 20, 21 and 24 (and regulations made for the purposes of those sections) with the following modifications:(a)

except in paragraphs (b) and (c), references to an MNE group are to the standalone JV or the JV group of which the entity is a part;

(b)

references to the filing entity of an MNE group are to the filing entity of the MNE group to which the standalone JV or entity is connected;

(c)

the reference in section 18(10) to a determination by an MNE group is to a determination by the MNE group to which the standalone JV or entity is connected;

(d)

references to the ultimate parent entity of an MNE group are to the standalone JV or the joint venture of the JV group;

(e)

references to a constituent entity (not being a special entity) or a constituent entity that is an investment entity or insurance investment entity (as the case may be), are to the standalone JV or the entity;

(f)

such other modifications as may be prescribed by the regulations.

(3) The FANIL and the GloBE income or loss for a financial year of a standalone JV or entity of a JV group are determined under paragraph 6 (except sub‑paragraphs (4) and (14)) of the First Schedule and regulations made for the purpose of that paragraph, with the following modifications:(a)

references to an MNE group are to the standalone JV or the JV group of which the entity is a part;

(b)

references to the ultimate parent entity of an MNE group are to the standalone JV or the joint venture of the JV group;

(c)

references to a constituent entity are to the standalone JV or the entity;[Act 25 of 2025 wef 01/01/2025]

(d)

such other modifications as may be prescribed by the regulations.

(4) For the purpose of subsection (3), if the financial year (FY1) of the standalone JV or entity of a JV group is different from the financial year (FY2) of the ultimate parent entity of the MNE group to which it is connected, the FANIL of the standalone JV or entity for FY2 is its FANIL for FY1 that ends at any time in FY2.

(5) For the purpose of applying section 18(3) in subsection (2) in a case described in subsection (4), the carrying value of an eligible tangible asset of the standalone JV or entity of a JV group for FY2 is its carrying value for FY1 that ends at any time in FY2.

(6) The qualifying current tax expenses, qualifying deferred tax expenses and adjusted covered taxes of a standalone JV or entity of a JV group are determined under paragraph 1 of the First Schedule and the regulations made for the purpose of that paragraph, with the following modifications:(a)

references to an MNE group are to the standalone JV or the JV group of which the entity is a part;

(b)

references to the ultimate parent entity of an MNE group are to the standalone JV or the joint venture of the JV group;

(c)

references to a constituent entity are to the standalone JV or the entity;[Act 25 of 2025 wef 01/01/2025]

(d)

such other modifications as may be prescribed by the regulations.