§ 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.

(3) If —(a)

the applicable tax treaty in subsection (2) requires the competent authorities of the 2 jurisdictions to reach a mutual agreement on the residence of the entity but no agreement exists, or that treaty does not provide relief or exemption from tax for X because it is a resident of both jurisdictions; or

(b)

there is no applicable tax treaty in force between the 2 jurisdictions,

then —

(c)

X is located in the jurisdiction where it paid the greater amount of covered taxes, excluding any tax paid under a controlled foreign company tax regime, for the financial year;

(d)

if the amount of covered taxes paid by X in each jurisdiction for the financial year is the same or nil, X is located in the jurisdiction where it has the greater amount of substance‑based income exclusion for the financial year as determined in accordance with section 18 for X as if X were the only constituent entity of its MNE group in that jurisdiction; and

(e)

if the amount of X’s substance‑based income exclusion mentioned in paragraph (d) for each jurisdiction for the financial year is the same or nil, X is treated as a stateless entity unless X is the ultimate parent entity of its MNE group, in which case X is located in the jurisdiction under the laws of which X is established, formed, incorporated or registered.

(4) In subsection (2) or (3), if —(a)

one of the jurisdictions is Singapore;

(b)

X would (but for this subsection) be located in the other jurisdiction as a result of that subsection;

(c)

that other jurisdiction does not impose a qualified IIR for the financial year; and

(d)

X would be a chargeable entity under section 12 if it were located in Singapore for the financial year,

then X is located in Singapore for the financial year.

(5) If the location of an entity changes in a financial year, it is located for that financial year in the jurisdiction where it is located at the beginning of that financial year.

(6) In subsection (3)(c), “controlled foreign company tax regime” means any law (other than a law imposing MTT or a qualified IIR) under which an entity (A) with an ownership interest in another entity (B) located in a different jurisdiction from A, is subject to current taxation on A’s share of part or all of B’s income, whether or not any of that income is distributed to A.

—(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.

(3) If —(a)

the applicable tax treaty in subsection (2) requires the competent authorities of the 2 jurisdictions to reach a mutual agreement on the residence of the entity but no agreement exists, or that treaty does not provide relief or exemption from tax for X because it is a resident of both jurisdictions; or

(b)

there is no applicable tax treaty in force between the 2 jurisdictions,

then —

(c)

X is located in the jurisdiction where it paid the greater amount of covered taxes, excluding any tax paid under a controlled foreign company tax regime, for the financial year;

(d)

if the amount of covered taxes paid by X in each jurisdiction for the financial year is the same or nil, X is located in the jurisdiction where it has the greater amount of substance‑based income exclusion for the financial year as determined in accordance with section 18 for X as if X were the only constituent entity of its MNE group in that jurisdiction; and

(e)

if the amount of X’s substance‑based income exclusion mentioned in paragraph (d) for each jurisdiction for the financial year is the same or nil, X is treated as a stateless entity unless X is the ultimate parent entity of its MNE group, in which case X is located in the jurisdiction under the laws of which X is established, formed, incorporated or registered.

(4) In subsection (2) or (3), if —(a)

one of the jurisdictions is Singapore;

(b)

X would (but for this subsection) be located in the other jurisdiction as a result of that subsection;

(c)

that other jurisdiction does not impose a qualified IIR for the financial year; and

(d)

X would be a chargeable entity under section 12 if it were located in Singapore for the financial year,

then X is located in Singapore for the financial year.

(5) If the location of an entity changes in a financial year, it is located for that financial year in the jurisdiction where it is located at the beginning of that financial year.

(6) In subsection (3)(c), “controlled foreign company tax regime” means any law (other than a law imposing MTT or a qualified IIR) under which an entity (A) with an ownership interest in another entity (B) located in a different jurisdiction from A, is subject to current taxation on A’s share of part or all of B’s income, whether or not any of that income is distributed to A.