§ 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 called in this section X), to be paid separately by X.(2) Unless the Comptroller permits otherwise, an MNE group must not make an election under subsection (1) in respect of more than 30 entities for any financial year.

(3) An election must not be made in respect of an entity that —(a)

has a negative amount of GloBE income or loss for the financial year;

(b)

is a flow‑through entity that is not a reverse hybrid entity with respect to any of its income, expenditure, profit or loss;

(c)

has an effective tax rate of 15% or more; or

(d)

ceases to be a constituent entity of the MNE group or (if it is a joint venture or JV subsidiary) to be connected to the MNE group, before the date of the return for the financial year under section 43.

(4) Amount Y is computed by the formula where —(a)

A is the GloBE income or loss of X for that financial year;

(b)

B is —(i)

if X is not a special entity — the sum of the GloBE income or loss for that financial year of all the constituent entities (not being special entities) of the MNE group located in Singapore that have a positive amount of GloBE income or loss for that financial year;

(ii)

if X is a section 29(b) entity, a minority‑owned constituent entity that is not part of a minority‑owned subgroup, or a standalone JV — the GloBE income or loss of X for that financial year; or

(iii)

if X is a minority‑owned constituent entity that is part of a minority‑owned subgroup or an entity of a JV group — the sum of the GloBE income or loss for that financial year of all the entities of the minority‑owned subgroup or JV group (as the case may be) located in Singapore that have a positive amount of GloBE income or loss for that financial year; and

(c)

C is —(i)

if X is not a special entity — the sum of the top‑up amounts for the constituent entities (not being special entities) of the MNE group located in Singapore for that financial year;

(ii)

if X is a section 29(b) entity, a minority‑owned constituent entity that is not part of a minority‑owned subgroup, or a standalone JV — the top‑up amount for X for that financial year; and

(iii)

if X is a minority‑owned constituent entity that is part of a minority‑owned subgroup, or an entity of a JV group — the sum of the top‑up amounts for the entities of the minority‑owned subgroup or JV group (as the case may be) located in Singapore for that financial year.

(5) In subsection (3)(c), the effective tax rate of an entity for a financial year is computed by the formula where —(a)

D is the adjusted covered taxes for that financial year of that entity; and

(b)

E is the GloBE income or loss for that financial year of that entity.

(6) An election under this section is to be made —(a)

in the return for the financial year in section 43; or

(b)

in any other form and manner and by a date determined by the Comptroller.

(7) An election under this section is effective for the financial year concerned only and is irrevocable.

(8) If X ceases to be a constituent entity of the MNE group or ceases to be a joint venture or JV subsidiary connected to the MNE group (as the case may be), its amount Y for any financial year is not affected by any adjustment to the GloBE income or loss or top‑up amount for that financial year of any constituent entity of the MNE group, or of any joint venture or JV subsidiary connected to the MNE group, that is made after the date of cessation; and the designated local DTT filing entity of the MNE group is accordingly liable for any additional DTT, and entitled to a refund of any overpayment of DTT, that results from such adjustment.

—(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 called in this section X), to be paid separately by X.

(2) Unless the Comptroller permits otherwise, an MNE group must not make an election under subsection (1) in respect of more than 30 entities for any financial year.

(3) An election must not be made in respect of an entity that —(a)

has a negative amount of GloBE income or loss for the financial year;

(b)

is a flow‑through entity that is not a reverse hybrid entity with respect to any of its income, expenditure, profit or loss;

(c)

has an effective tax rate of 15% or more; or

(d)

ceases to be a constituent entity of the MNE group or (if it is a joint venture or JV subsidiary) to be connected to the MNE group, before the date of the return for the financial year under section 43.

(4) Amount Y is computed by the formula where —(a)

A is the GloBE income or loss of X for that financial year;

(b)

B is —(i)

if X is not a special entity — the sum of the GloBE income or loss for that financial year of all the constituent entities (not being special entities) of the MNE group located in Singapore that have a positive amount of GloBE income or loss for that financial year;

(ii)

if X is a section 29(b) entity, a minority‑owned constituent entity that is not part of a minority‑owned subgroup, or a standalone JV — the GloBE income or loss of X for that financial year; or

(iii)

if X is a minority‑owned constituent entity that is part of a minority‑owned subgroup or an entity of a JV group — the sum of the GloBE income or loss for that financial year of all the entities of the minority‑owned subgroup or JV group (as the case may be) located in Singapore that have a positive amount of GloBE income or loss for that financial year; and

(c)

C is —(i)

if X is not a special entity — the sum of the top‑up amounts for the constituent entities (not being special entities) of the MNE group located in Singapore for that financial year;

(ii)

if X is a section 29(b) entity, a minority‑owned constituent entity that is not part of a minority‑owned subgroup, or a standalone JV — the top‑up amount for X for that financial year; and

(iii)

if X is a minority‑owned constituent entity that is part of a minority‑owned subgroup, or an entity of a JV group — the sum of the top‑up amounts for the entities of the minority‑owned subgroup or JV group (as the case may be) located in Singapore for that financial year.

(5) In subsection (3)(c), the effective tax rate of an entity for a financial year is computed by the formula where —(a)

D is the adjusted covered taxes for that financial year of that entity; and

(b)

E is the GloBE income or loss for that financial year of that entity.

(6) An election under this section is to be made —(a)

in the return for the financial year in section 43; or

(b)

in any other form and manner and by a date determined by the Comptroller.

(7) An election under this section is effective for the financial year concerned only and is irrevocable.

(8) If X ceases to be a constituent entity of the MNE group or ceases to be a joint venture or JV subsidiary connected to the MNE group (as the case may be), its amount Y for any financial year is not affected by any adjustment to the GloBE income or loss or top‑up amount for that financial year of any constituent entity of the MNE group, or of any joint venture or JV subsidiary connected to the MNE group, that is made after the date of cessation; and the designated local DTT filing entity of the MNE group is accordingly liable for any additional DTT, and entitled to a refund of any overpayment of DTT, that results from such adjustment.