§ 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 the law of a jurisdiction other than Singapore that is substantially similar to any qualified IIR; or

(b)

a qualified UTPR, or a tax imposed by the law of a jurisdiction other than Singapore that is substantially similar to any qualified UTPR;”;

(c)

in section 2(1), after the definition of “limited partnership”, insert —“ “MMT Act” means the Multinational Enterprise (Minimum Tax) Act 2024;

“MTT” means the multinational enterprise top‑up tax imposed under the MMT Act;”;

(d)

in section 2(1), after the definition of “professional visit pass”, insert —“ “qualified domestic minimum top‑up tax” has the meaning given by section 2(1) of the MMT Act, and includes a tax imposed by the law of a jurisdiction other than Singapore that is substantially similar to any qualified domestic minimum top‑up tax;

“qualified IIR” and “qualified UTPR” have the meanings given by section 2(1) of the MMT Act;”;

(e)

after section 2, insert —“Purpose of Act

2A.—(1) Income tax is charged in accordance with this Act on the income of a person accruing in or derived from Singapore or received in Singapore from outside Singapore, or on such amounts deemed to be chargeable as such income under this Act.(2) Income tax (namely, DTT and MTT) is also charged in accordance with the MMT Act on the income of a multinational enterprise group for the following purposes:(a)

to implement the Global Anti‑Base Erosion Model Rules (Pillar 2) relating to the top‑up tax under the income inclusion rule (IIR);

(b)

to implement a domestic top‑up tax that is intended to be a qualified domestic minimum top‑up tax (QDMTT) within the meaning of those Rules.

(3) The liabilities of a person to the taxes mentioned in subsections (1) and (2) are cumulative.

(4) Sections 2 (except for definitions of terms used in provisions applied under subsection (6) insofar as not modified by the MMT Act), 3A, 5, 7, Parts 3 to 15 (except section 57), sections 62 to 63, 66 to 71, Part 17, sections 81, 82, 84, 85, 86, 88, 91 to 93A, 94 to 101, 102A, 103, 104, 104A, Parts 20A, 20B and 21, and the Schedules do not apply in relation to DTT and MTT.

(5) Subsection (4) does not affect the operation of —(a)

section 15(1)(g) (in relation to the disallowance of deductions for DTT and MTT); and

(b)

section 49 (in relation to arrangements for relief from double taxation for DTT, and any tax of a similar character imposed by the laws of another country).

(6) The provisions of this Act not disapplied by subsection (4) apply in relation to DTT and MTT, but only in accordance with the MMT Act.”;

(f)

in section 13(9)(a), after “(by whatever name called)”, insert “, or qualified domestic minimum top‑up tax (but disregarding any excluded top‑up tax),”;

(g)

in section 13(9)(b), after “(by whatever name called)”, insert “(but disregarding any excluded top‑up tax or qualified domestic minimum top‑up tax),”;

(h)

in section 15(1)(g), after “income tax in Singapore”, insert “(including MTT and DTT)”;

(i)

in section 15(1), after sub‑paragraph (g), insert —“(ga)

any amount paid or payable in respect of any excluded top‑up tax or qualified domestic minimum top‑up tax;”;

(j)

in section 49(1), after “tax under this Act”, insert “(including DTT but excluding MTT)”;

(k)

in section 50, after subsection (1), insert —“(1A) To avoid doubt, this section —(a)

does not apply where the tax payable in respect of income in that territory is an excluded top‑up tax; and

(b)

applies where the tax payable in respect of income in that territory is a qualified domestic minimum top‑up tax that is payable —(i)

in respect of the income of a permanent establishment in a territory; or

(ii)

in the cases in subsections (5)(c) and (7)(a), by a company in respect of the profits out of which it pays the dividend.”;

(l)

in section 50A, after subsection (1), insert —“(1A) To avoid doubt, this section —(a)

does not apply where the tax payable in respect of income in that territory is excluded top‑up tax; and

(b)

applies where the tax payable in respect of income in that territory is a qualified domestic minimum top‑up tax that is payable —(i)

in respect of the income of a permanent establishment in a territory; or

(ii)

in the cases in subsections (2) and (3), by a company in respect of the profits out of which it pays the dividend.”;

(m)

in section 50C(2)(a), after “(by whatever name called)”, insert “or qualified domestic minimum top‑up tax (but disregarding any excluded top‑up tax),”; and

(n)

in section 50C(2)(b), after “(by whatever name called)”, insert “(but disregarding any excluded top‑up tax or qualified domestic minimum top‑up tax),”.

—(1) Income tax is charged in accordance with this Act on the income of a person accruing in or derived from Singapore or received in Singapore from outside Singapore, or on such amounts deemed to be chargeable as such income under this Act.

(2) Income tax (namely, DTT and MTT) is also charged in accordance with the MMT Act on the income of a multinational enterprise group for the following purposes:(a)

to implement the Global Anti‑Base Erosion Model Rules (Pillar 2) relating to the top‑up tax under the income inclusion rule (IIR);

(b)

to implement a domestic top‑up tax that is intended to be a qualified domestic minimum top‑up tax (QDMTT) within the meaning of those Rules.

(3) The liabilities of a person to the taxes mentioned in subsections (1) and (2) are cumulative.

(4) Sections 2 (except for definitions of terms used in provisions applied under subsection (6) insofar as not modified by the MMT Act), 3A, 5, 7, Parts 3 to 15 (except section 57), sections 62 to 63, 66 to 71, Part 17, sections 81, 82, 84, 85, 86, 88, 91 to 93A, 94 to 101, 102A, 103, 104, 104A, Parts 20A, 20B and 21, and the Schedules do not apply in relation to DTT and MTT.

(5) Subsection (4) does not affect the operation of —(a)

section 15(1)(g) (in relation to the disallowance of deductions for DTT and MTT); and

(b)

section 49 (in relation to arrangements for relief from double taxation for DTT, and any tax of a similar character imposed by the laws of another country).

(6) The provisions of this Act not disapplied by subsection (4) apply in relation to DTT and MTT, but only in accordance with the MMT Act.”;

“(1A) To avoid doubt, this section —(a)

does not apply where the tax payable in respect of income in that territory is an excluded top‑up tax; and

(b)

applies where the tax payable in respect of income in that territory is a qualified domestic minimum top‑up tax that is payable —(i)

in respect of the income of a permanent establishment in a territory; or

(ii)

in the cases in subsections (5)(c) and (7)(a), by a company in respect of the profits out of which it pays the dividend.”;

“(1A) To avoid doubt, this section —(a)

does not apply where the tax payable in respect of income in that territory is excluded top‑up tax; and

(b)

applies where the tax payable in respect of income in that territory is a qualified domestic minimum top‑up tax that is payable —(i)

in respect of the income of a permanent establishment in a territory; or

(ii)

in the cases in subsections (2) and (3), by a company in respect of the profits out of which it pays the dividend.”;