§ 9 — Currency

9.—(1) Unless otherwise specified in subsection (3) or (4) or in the regulations, calculations under this Act in relation to an MNE group, or a constituent entity of the group, are to be carried out in the following currency (called in this section the presentation currency):(a)

the currency used to prepare the consolidated financial statements for the financial year concerned of the ultimate parent entity;

(b)

where no such statements were prepared, the currency in which such statements would have been prepared in accordance with paragraph 2(d) of the First Schedule.

(2) Where it is necessary to convert an amount into the presentation currency for any purpose under this Act, the conversion must be made in accordance with the regulations.

(3) Where all the constituent entities of an MNE group located in Singapore —(a)

have the same financial year as the ultimate parent entity of the MNE group;

(b)

prepare their financial statements for that financial year in accordance with the Accounting Standards made or formulated under Part 3 of the Accounting Standards Act 2007, where either —(i)

they are required to do so under any written law in Singapore; or

(ii)

the financial statements are audited by an external auditor; and

(c)

use Singapore dollar as their functional currency in preparing those financial statements,

the calculations for the purposes of Part 3 in relation to the MNE group, or a constituent entity of the MNE group, are to be carried out in Singapore dollar.

(4) For the purposes of Part 3, subsection (3) applies to a standalone JV (X) or entities of a JV group (Ys) located in Singapore, that are each treated as a constituent entity of an MNE group located in Singapore under that Part, as if —(a)

a reference in that subsection to all the constituent entities of an MNE group were to X or to Ys;

(b)

the reference to the MNE group in paragraph (a) of that subsection were to the MNE group to which X or Ys are connected; and

(c)

the reference in that subsection to “the group, or a constituent entity of the group” were to X, and to the JV group or any Y, respectively.

(5) Where any entity in subsection (3) or (4) does not use Singapore dollar as its functional currency in preparing its financial statements, an election may be made for the calculations for the purposes of Part 3 in relation to the MNE group or JV group, or the standalone JV (as the case may be), to be carried out in either of the following currencies:(a)

the currency used to prepare the consolidated financial statements of the ultimate parent entity or the joint venture of the JV group, or the financial statement of the standalone JV, as the case may be;

(b)

Singapore dollar.

(6) The conversion of an amount in the functional currency in subsection (5) into —(a)

the currency in subsection (5)(a), where an election is made under subsection (5) for that currency; or

(b)

Singapore dollar, where an election is made under subsection (5) for that currency,

must be made in accordance with the regulations.

(7) An election under subsection (5) must not be revoked for the financial year with respect to which it is made or for any of the subsequent 4 financial years, and any such revocation has no effect.

(8) If an election under subsection (5) is revoked for a financial year, another election under that subsection must not be made (whether in Singapore or in another jurisdiction) in respect of the constituent entities located in Singapore for that or any of the subsequent 4 financial years, and any such election has no effect.

(9) The amount of any MTT or DTT payable is to be denominated in Singapore dollars, and for this purpose an amount of top‑up tax for a financial year that is in the presentation currency (not being Singapore dollar) is to be converted into Singapore dollars in accordance with the regulations.

(10) For the purpose of comparing an amount to a figure expressed in this Act in euros —(a)

the amount if not in the presentation currency (and even if it is in euros), is to be converted first into the presentation currency in accordance with the regulations; and

(b)

the amount in the presentation currency (not being euros) is then to be converted into euros in accordance with the regulations.

—(1) Unless otherwise specified in subsection (3) or (4) or in the regulations, calculations under this Act in relation to an MNE group, or a constituent entity of the group, are to be carried out in the following currency (called in this section the presentation currency):(a)

the currency used to prepare the consolidated financial statements for the financial year concerned of the ultimate parent entity;

(b)

where no such statements were prepared, the currency in which such statements would have been prepared in accordance with paragraph 2(d) of the First Schedule.

(2) Where it is necessary to convert an amount into the presentation currency for any purpose under this Act, the conversion must be made in accordance with the regulations.

(3) Where all the constituent entities of an MNE group located in Singapore —(a)

have the same financial year as the ultimate parent entity of the MNE group;

(b)

prepare their financial statements for that financial year in accordance with the Accounting Standards made or formulated under Part 3 of the Accounting Standards Act 2007, where either —(i)

they are required to do so under any written law in Singapore; or

(ii)

the financial statements are audited by an external auditor; and

(c)

use Singapore dollar as their functional currency in preparing those financial statements,

the calculations for the purposes of Part 3 in relation to the MNE group, or a constituent entity of the MNE group, are to be carried out in Singapore dollar.

(4) For the purposes of Part 3, subsection (3) applies to a standalone JV (X) or entities of a JV group (Ys) located in Singapore, that are each treated as a constituent entity of an MNE group located in Singapore under that Part, as if —(a)

a reference in that subsection to all the constituent entities of an MNE group were to X or to Ys;

(b)

the reference to the MNE group in paragraph (a) of that subsection were to the MNE group to which X or Ys are connected; and

(c)

the reference in that subsection to “the group, or a constituent entity of the group” were to X, and to the JV group or any Y, respectively.

(5) Where any entity in subsection (3) or (4) does not use Singapore dollar as its functional currency in preparing its financial statements, an election may be made for the calculations for the purposes of Part 3 in relation to the MNE group or JV group, or the standalone JV (as the case may be), to be carried out in either of the following currencies:(a)

the currency used to prepare the consolidated financial statements of the ultimate parent entity or the joint venture of the JV group, or the financial statement of the standalone JV, as the case may be;

(b)

Singapore dollar.

(6) The conversion of an amount in the functional currency in subsection (5) into —(a)

the currency in subsection (5)(a), where an election is made under subsection (5) for that currency; or

(b)

Singapore dollar, where an election is made under subsection (5) for that currency,

must be made in accordance with the regulations.

(7) An election under subsection (5) must not be revoked for the financial year with respect to which it is made or for any of the subsequent 4 financial years, and any such revocation has no effect.

(8) If an election under subsection (5) is revoked for a financial year, another election under that subsection must not be made (whether in Singapore or in another jurisdiction) in respect of the constituent entities located in Singapore for that or any of the subsequent 4 financial years, and any such election has no effect.

(9) The amount of any MTT or DTT payable is to be denominated in Singapore dollars, and for this purpose an amount of top‑up tax for a financial year that is in the presentation currency (not being Singapore dollar) is to be converted into Singapore dollars in accordance with the regulations.

(10) For the purpose of comparing an amount to a figure expressed in this Act in euros —(a)

the amount if not in the presentation currency (and even if it is in euros), is to be converted first into the presentation currency in accordance with the regulations; and

(b)

the amount in the presentation currency (not being euros) is then to be converted into euros in accordance with the regulations.